Newcastle United ranked lower in wage spending compared to Leicester City, Aston Villa, Tottenham, and other clubs, yet secured a top-four finish in the Premier League last season.
Newcastle United boasted a lower wage expenditure compared to Leicester City, who faced relegation, during the season when the Magpies secured qualification for the Champions League. Newcastle’s salary outlay stood at £186.7 million, resulting in a wage-to-turnover ratio of 75% for the year. This ranked them ninth in terms of wage bills in the Premier League, with Leicester, Aston Villa, and Tottenham among the clubs spending more on salaries.
Leicester, despite finishing in 18th place, had a staggering wage bill of £205.8 million, translating to a salary-to-turnover ratio of 116%. Even though Leicester’s accounting period spanned 13 months, the annualized figure would still amount to £187.2 million in salary expenditure over 12 months. These figures were outlined in Leicester’s recent financial accounts, which revealed a loss of £89.7 million for the club, despite significant player sales, such as Wesley Fofana to Chelsea and James Maddison to Spurs, before June 30, 2023.
With previous deficits recorded at £92.5 million and £33.1 million in the preceding two campaigns, Leicester faced consequences for their financial situation, including an alleged breach of the Premier League’s profit and sustainability rules and placement under a transfer embargo by the EFL. Enzo Maresca’s team now faces the potential of a points deduction, irrespective of their promotion status.
Having consistently achieved top-eight finishes in the preceding three seasons, Leicester considered their targets and budgets for the last season to be ‘entirely reasonable.’ However, it is notable that the club incurred the highest combined employment costs and player amortization in the Premier League outside of the traditional elite clubs, amidst a drop in turnover to £177.3 million and absence from European competitions. Chief executive Susan Whelan acknowledged the season as a ‘significant setback,’ with repercussions expected to persist for ‘some time.’