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Hari Kiri economics – Premier League Agents Fees

Tom Winnifrith
Saturday 1 December 2012

How many clubs in the Premier League make a profit? Er.. Man United sometimes bit not much of a profit and certainly enough to justify its market valuation. But the rest are all losing money and so in an industry pursuing Hari Kiri economics it is no surprise that last year the top 20 soccer clubs in the UK pissed at £77 million on agent’s fees alone. Leading the way was Man City with £10.5 billion frittered away but it is the next few big spenders that says it all.

The next most generous were Liverpool (£8.6 million) and QPR (£6.8 million) not far ahead of Harry Rednapps’s Spurs. Liverpool have had one of their worst starts to the League in decades. QPR are bottom of the league and have already fired their manager. Spurs have been hit and miss. Sadly hit against West Ham last weel. Of course ‘arry loves a good transfer with agents always involved. How many signings did he make during his tenure at West Ham? I think it was 72. There was that Boogers fellow who no sooner than he had signed was sectioned a loony bin. And I think a whole team who played fewer than five games for us. QPR will be dealing hard again in January. The agents will still love QPR.

West Brom (now 3rd in the table) spent just £1.3 million on agents fees –only two clubs spent less. I admit that those two are Southampton and Norwich, neither of whom is exactly flying. But there is absolutely no clear correlation between the amount handed over to dodgy men in sheepskin jackets and on the field success. For managers it is always “other peoples money” so there is no reason not to spend it with reckless abandon in the hope that it delivers results.

In many ways the madness of soccer finance is like the BBC, NHS and so much else associated with the Government in Bankrupt Britain. Big cheques are written with other folks money by those who are not really financially accountable and vast deficits are perennially run up. And none of this is sustainable.

PS Before you ask, West Ham (drowning in debt) blew £4.4 million on agents fees, making it the seventh most profligate team in the Premiership.

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About Tom Winnifrith
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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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