Club A - let's call it Norwich City - knows their income will be 15 million quid in 2008/2009.
On that basis they set aside 40 per cent of that sum for playing staff wages and 10 per cent for other staff costs.
Any additional revenue coming into the club (transfers accepted) is split: 70 per cent goes to the football budget and 30 per cent goes to the club (maybe get a new stereo for ND?).
The players are incentivised to perform (just think what happens if they win a couple of cup games!) and the club aren't forced to keep selling players to maintain a crippling wage-bill.
What other business runs at a constant loss?
Posted By: east of hampstead, May 29, 16:43:21
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