UEFA’S cost controls encourage smart player trading
A key component of UEFA’s new cost control measures is limiting wage spend to 70% of revenue and profit on player sales. This makes sense in principle as, unlike with hard salary caps it maintains the incentive for clubs to grow revenues to facilitate investment into the playing squad.
It also acknowledges the significance of player sales as a ‘fourth’ revenue stream. Brentford, for instance, while in the Championship were able to double their revenue from traditional sources through player sales.
Effective player trading is now key to ensure clubs remain both competitive and compliant. At TFG, we use data to ‘match’ players with appropriate buying clubs, generating a win:win:win – selling clubs maximise their fee, while players and the buying clubs benefit from a higher chance of a successful move. This is not only a sensible strategy, but it is now encouraged by UEFA’s rules.
By Ben Marlow
Chief Strategy Officer