“But why are player costs important? After all, it’s not our money, right. Disregarding that it kind of is our money – the huge increase in Premier League TV revenue, for example, is being paid for through Sky and BT subscription fees from UK viewers – with domestic and Uefa financial regulations, clubs are prevented from spending much more than they earn. In practice, this results in individual spending caps for each team. Understanding how clubs calculate player costs helps us to see how they really value certain players, as well as how the money is being spent, which players provide good value, and which players do not.”
Superb coverage on the business behind mega contracts at The Guardian.