Barcelona and Real Madrid "are the only clubs among Europe’s elite whose wage costs have risen significantly faster than their income," new research revealed, according to Martyn Ziegler of the LONDON TIMES. Despite the spiraling wages, the two Spanish clubs "have managed to remain profitable -- but only by curtailing their net spend on transfers." Real Madrid's net spend of £172M ($228M) on transfers since '10 is "the lowest" of the top 10 wealthiest teams. Barcelona spends the most on wages, ahead of Real Madrid and Paris St. Germain. ManU spends the most on wages in the Premier League. A report by KPMG "shows that total revenues over the past five years" have increased by 76% in the EPL, with total wage costs rising only 56% in the same period. The report added, "The two 'worst performers' over the past five seasons are the Spanish giants, Real Madrid and Barcelona. Both clubs suffer from increased staff costs outperforming turnover" (LONDON TIMES, 10/3).
SECRET TO SUCCESS: ESPN.com's Dermot Corrigan reported Real Madrid's recent Champions League success "has shown that squad salary levels are more important than one-off transfer fees," according to KPMG's study. The research also suggested that EPL clubs' recent lack of European success "can be attributed to owners who don't pass on increased revenues to their squads." KPMG's Football Benchmark group found that "at most of Europe's top clubs, revenues were growing at a much higher rate than salaries." The exceptions to this trend for the period between '11-12 and '15-16 were Real Madrid, Barcelona, Chelsea and Bayern Munich (ESPN.com, 10/3).
