IFRS hits football clubs' wage bills
'Prescriptive' IFRS will force up clubs' wage bills, says Manchester United finance director.
Top football clubs will see their wage bills jump under IFRS when expenses are included in player remuneration for the first time.
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Manchester United FD Nick Humby, who reported his club’s interim results last week, told Accountancy Age that the cost of player wages would rise. ‘IFRS is far more detailed and prescriptive on how wages are accounted for,’ he said.
‘Housing and flights home for players have always been treated as costs, but will now be included in wages.’
Humby said that there would be a ‘notable’ increase to the key wage-to-turnover ratio that clubs use to control player wages.
United, whose playing staff includes Rio Ferdinand, currently has a 46.6% ratio, compared with an average of 61%, according to Deloitte’s annual football survey.