After a £106 million increase, Liverpool must comply with a UEFA rule change.
Liverpool’s pay expenditure has risen dramatically in recent seasons as a result of their on-field success.
The Reds’ salary bill has increased by 95% since 2015, greatly outpacing the club’s revenue growth of 64%, and the club now has the second-largest payroll in the Premier League, at £325 million, behind Manchester City’s £351 million.
The wage bill has risen in line with investment in better players, better contracts for key performers, and significant bonus payments received for winning the Champions League and the Premier League in 2019.
While Liverpool’s wages have increased, there is little concern that they will become a millstone around the club’s neck. The Reds’ wage-to-revenue ratio is currently around 65 percent, though it will likely exceed UEFA’s recommended threshold of 70 percent by the time the next accounts are released due to the addition of new big contracts on the payroll, such as Thiago Alcantara, and the inclusion of new players.
Some fans have chastised Liverpool’s owners, Fenway Sports Group, for what they perceive to be a lack of spending and investment in the squad, notably in the last two transfer windows. While some argue that they are investing in success since they have committed to paying more to keep their top players like Virgil van Dijk and Alisson Becker, their status as the second highest payers in the Premier League is an argument for some.
A look throughout Europe at the financial hardship caused by the coronavirus pandemic, as well as the crises at teams like Barcelona, which has a £1.1 billion debt, and Real Madrid, come to mind. In French football, while Paris Saint-summer Germain’s expenditures fueled by petrodollars may have generated a. “The summary has come to an end.”