For many, football is more than just a game. It can be a lucrative career for many young sportspeople, and some give up everything to have a chance at signing a contract with one of England’s big clubs.
However, the financial landscape that the football pyramid is built on isn’t a level one. The pay disparities between those at the top clubs in the premier league and those playing for clubs in the EFL are stark, with lower-league players facing financial insecurity. Even those playing at the highest level of the sport can have their career taken away from them in an instant. It only takes one bad tackle or medical episode for players to suddenly find themselves unemployed with nowhere to turn.
With this in mind, the Approved Finance Group set out to discover the unique challenges footballers face after hanging up their boots, and what their options are after retirement.
TOP STATS
● The average retirement age in English football is 35-years-old.
● The average career length for a Premier League footballer is 8 years.
● Footballers in the Premier League earn on average 2634% more than average UK worker.
● The average Premier League footballer could save enough money for a comfortable retirement lasting 65 years.
● By contrast, a League Two player will run out of funds in just under 3 years.
Premier League earners may never have to work again after retirement
Based on a 50-30-20 savings model (50% needs, 30% wants, and 20% savings and debt repayment), the average premier league player with a career spanning 8 years can afford a comfortable retirement for 65 years, 10 Months and 26 days. This is based on a footballer saving 20% of their salary each month for 8 years.
By contrast, a player retiring from football after the same career span in a League Two team would run out of funds in just 2 years, 8 months and 18 days.
Financial planning and career longevity
It’s crucial for footballers to begin financial planning as early as possible in their careers. However, many do not realise the importance of future planning until much later down the line, and could pay a heavy price for it.
Shockingly, around 40% of footballers go bankrupt in retirement, with many facing financial difficulties soon after their careers end. There are several reasons for this, including:
● Living beyond their means
With such astronomical figures on their payslip, many football players get accustomed to a certain lifestyle, which includes expensive properties, holidays, cars and more. Somewhat understandably, this can be difficult to give up, but when the income dries up, maintaining this lifestyle can be a huge drain on resources.
● Poor personal finance management skills
Footballers often come into the industry when they’re still young, as their youth and ability make them attractive prospects for big clubs to cash in on the next big thing. Unfortunately, a lack of financial management experience or knowledge means that many are ill-prepared to manage wealth effectively. A lack of understanding when it comes to budgeting, investing, and saving leaves many at a high risk of serious financial instability which could affect them for the rest of their lives.
● Saying yes to everything
With wealth comes the ability to help friends and family. For those on a high-wage, it can be easy to start helping friends and family with their own business ideas or to help them buy property.
Buying these things outright with cash can save on some bank fees, but it also leaves players at risk of losing that money should the business fail. A smarter play would be to buy the property using a commercial mortgage, which protects against such circumstances.
The same logic applies to players buying new cars. There is an expectation in football that players have to keep on top of the latest and most luxurious cars, so many go out and buy it outright, only to have to sell and swap it a year or two later. Instead, players should consider a PCP finance contract, the most flexible form of car finance contract. This allows them to hand back the car and swap it for another whenever they like, without having to pay any penalty fees.
Pay disparities across the 23/24 football season
Using figures from football financial analytics firm, Capology, we’ve ranked teams across the top four tiers of English football based on their average gross player salaries and gross weekly wages.
The Premier League has always been the most lucrative league in the world for professional footballers, and it’s easy to see why when you take a deep dive into the average salaries of players.
Manchester City leads the wage bill table by some margin, with the average player earning over £7.7 million a year at the club. Some of the biggest names in football currently play for the title-winning club, so it’s hardly surprising that they pay such enormous sums.
According to Capology, Belgian Midfielder Kevin DeBruyne is currently the highest-paid player in the league, earning £20.8 million a year gross.
Speaking about the research, Mark Kozo, Commercial Director at Approved Finance Group, said:
“After retiring from football, it’s important for players to make a swift transition from the pitch to a normal working life and be disciplined with their finances. As we can see from this research, the average football player outside of the premier league will have to find new income streams to enable them to have a long-lasting, comfortable retirement.
“It’s vital that players become financially literate quickly, learning how to manage their finances once the salary from their football career comes to an end. With 40% of football players going bankrupt after retirement, learning how to make informed decisions and avoid high-risk ventures could be crucial in later life.
“By understanding the intricacies of finance, footballers can take control of their wealth and steer their post-retirement careers in a profitable direction.”
*Methodology
Using data from football financial analytics firm, Capology, financial experts at Approved Business Finance ranked teams across the top four tiers of English football based on the average gross player salaries and gross weekly wages for the 2023/24 season.
Based on a 50-30-20 savings model (50% needs, 30% wants, and 20% savings and debt repayment), the average age of retirement for footballers being 35 years old, the average football career spanning 8 years, and the cost of a comfortable retirement being £43,100 a year, Approved has been able to calculate how long the average footballer in the premier league, championship, league one and league two would be able to afford a comfortable retirement.
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