Liverpool - Wages 

The wages have of course just risen and risen over the last ten years, and are now 83% higher than in 2001.

The key thing though is how much of the club's income goes on wages. As well as paying the wages there are a number of other costs that any football club has to watch. The most obvious ones are the actual costs of putting on a game, another the costs of buying in new players.

There is a commonly agreed target that a club should aim to spend no more than 50% of its income on wages. The graph below shows how the wages have risen but also shows on the line how the ratio hasn't been too bad. As a comparison the figures at Newcastle go from being excellent four or five years ago to be completely out of control. Liverpool's wages look to be well managed. This is usually managed by having a good basic wage, and bonuses that can be paid for out of good results.

The thing to remember is that the ratio has two halves to it. If Liverpool were to not have a year in the Champions League then the income could easily drop by ~20m, for that year and suddenly the wage bill would look less clever. The issue at Newcastle was that they tried to attract high-earning players, on long contracts and then didn't stay in the Champions League. Hopefully Liverpool are very aware of this !