Wages the drain on Preston’s balance sheet
Preston North End were among 13 clubs in the Championship last season to spend more on their wage bill than money coming into the club.
Data from football finance expert Kieran Maguire laid bare the nature of finances at this level, with clubs pushing to try and reach the Premier League.
PNE’s accounts for the year ending June 30, 2019, showed income of £13.8m.
They paid out £19.7m on wages though, that a 143% spend of wages.
It was pattern seen in more than half of the division last season and is likely to be similar this season – in fact the current shutdown due to the Covid-19 outbreak could see higher percentages.
Maguire’s figures saw Reading top the table of income to wages ratio.
The Royals brought in income of £18.1m but paid £40.7m in wages – a 226% spend.
Aston Villa was second behind Reading, their income in the season they were promoted being £54.3m and wages paid £90.5m, that a 175% spend.
Wigan (168%), Sheffield Wednesday (168%), Derby (161%)and Norwich (152%) were next in the list, with Nottingham Forest on the same 143% spend on wages as PNE.
However, Forest’s income was £25.3m, with the wage £36.3m.
PNE’s average weekly wage was £9.1560 last season, the eighth lowest in the Championship.
Villa had the biggest average weekly wage, an eye-watering £44,150.
On the finance front, PNE owner Trevor Hemmings put £1.67m into the club this week via a share issue.
Hemmings invests in that manner a few times a season, with shares not counting as debt unlike cash payments.