UEFA has decided to sound the alarm over ever-higher player salaries, and a worrying overall financial situation for clubs.
UEFA has clearly decided to bang its fist on the table. A few years after introducing the now-infamous financial fair play, the European body has issued a warning in recent hours about players’ wage increases, highlighting the financial tensions at several European clubs.
According to Marca, UEFA’s report on the state of European soccer reveals that, while many clubs are managing wage increases responsibly, others are seeing their costs soar, putting increasing pressure on their margins. UEFA President Aleksander Ceferin commented: “Clubs must remain vigilant, as there is still much to be done to restore pre-pandemic profitability.”
PSG, one of the worst performers
Players’ salaries reached a staggering total of 18 billion euros in the 2023-2024 season, up 6.5% on the previous year. Clubs such as PSG, with a wage bill of 658 million euros, and Manchester City, with 554 million euros, were among those spending the most on salaries. Furthermore, many clubs continue to post worrying ratios, with salaries absorbing a disproportionate share of revenues, reaching up to 98% of revenues for Greek clubs.
While European clubs recorded an overall operating profit of 300 million euros in 2024, some clubs such as PSG and Chelsea posted substantial losses. In addition, revenues generated by player transfers to Saudi clubs have helped some clubs to balance their books, a form of artificial lifeline. More than ever, UEFA remains concerned about the impact of high spending on clubs’ long-term financial stability.
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