Home Business News Cutting football club expenses could boost local economies by £11.3m each year

Cutting football club expenses could boost local economies by £11.3m each year

by LLB Reporter
25th Feb 20 6:09 am

If the world’s highest-earning football clubs were to cut their inessential expenses by just 5%, they would collectively contribute £11.3m to the global economy, new research shows.

Club vs Community calculates the cost of rectifying top social issues around the world – including homelessness and unemployment – and measures this against football clubs’ expenditure to see if the money could be put to better use.

The ten most profitable teams, as decided by the Deloitte Football Money League, have spent a staggering £2.9bn on salaries, transfer fees, arena construction and other reducible areas over the past year.

If they were to reinvest 5% of their inessential expenses into local businesses, such as hotels and shops, they could contribute an average of £214,560 to their local economy each year.

These figures are based on the average return on investment per £1 for local services, which was reported as being 7.73%. As well as providing funding to local schools, shops and hotels, this economic boost could then provide life-changing support for vulnerable locals.

The study shows that it costs £1,394 to rehabilitate and rehome a homeless person in the UK. If Manchester United were to invest 5% of the £286 million it spent on player wages last year into the local economy, they could rehome 15,868 vagrants each year.

Based on those calculations, it would take the team just over 20 years to completely rectify the UK’s homelessness issue, with 320,000 migrants reported by Shelter in 2018.

If the top three highest-earning UK teams all contributed 5% of player wages to reinvestment in local services, homelessness could be obliterated in less than eight years – provided the money went directly back into the economy.

The return on investment could be even higher if the team were to contribute to other sectors, such as technology with an ROI of 22.37%, or capital goods at 16.46%.

Although addressing prevalent social issues may be said to be beyond the remit of football clubs, the fact remains that the average pay in the Premier League is around £191,085 per month – a staggering 120 times more than the typical £1,590 EU monthly wage.

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