|Staff & Payroll|
Coventry - Staff and Payroll
Payroll covers all the people employed by the club, from the players, through the board members, through to the match day tea-lady.
There are two areas to watch. The obvious one is that that the wages just don't get too high. The graph again shows the problem the club had with relegation. The 2002 figure shows that the club had not prepared at all for relegation. There was no drop in wages being paid between the last year in the top division and the first one in the Championship. Clearly no-one was on a contract that had a clause which said "Premiership salary is x, and Championship salary if 50% of x".
By 2005 and 2006 the wages seemed to have settled down, but again in 2007 there was an unexplained leap in to madness again.
The second area to keep an eye on is the ratio of the wages to the income. Deloittes who do some in-depth analysis of football finances reckon the target for this ratio should be 50%. This allows the club to cope with the costs of running the business, buying the occasional player, running a youth development system, putting on games, maintaining the ground etc.
Coventry have one of the worst records of teams that this site has looked at. The 2006 figure showed the club giving 72% of its income to players, way over where it should be. This was the best ratio the club achieved in eight years. One three occasions the club gave the players more money than was coming in to the club, before anything had to be paid for. This is a ridiculous way to try and run a football club.
The 2007 rise of 40% in wages can probably be explained with the set of new players brought in at the start of the 2006/07 season, that the board sanctioned this is a lot more difficult to explain.
There are two ways to improve the ratio, by either cutting wages or by increasing income. It is clear from both the wages and the income figures that neither of these areas were being tackled well up to 2007.
The number of people employed within the footballing side of the business comes to 78. This works out as an average of £105,00 each. This covers everyone down to trainees, and all the coaches as well as the first team players.
The overall business has more employees and wages. This covers admin and shop staff as well as stewards. Most clubs lump all these things together and it may be more fair to show the wages, and wages ratio across the whole business. This graph is shown below.
These figures are slightly better as the non-football staff are clearly paid less then the footballers. Nonetheless the ratios are still way above the 50% target figure.
The graph below shows the number of staff employed by Coventry. This has been fairly flat. The split for 2007 shows there were 78 players and coaches, 287 stewards and 44 Admin staff.