Does the Women’s Super League need a salary cap? That was the question posed this week by no less an authority than Deloitte’s Sports Business Group upon the release of its 34th Annual Review of Football Finance.
The report contained plenty of positive updates on the finances of WSL teams: aggregate revenue grew 36 per cent in 2023-24, with increases in all three main streams – matchday, commercial and broadcast – and is forecast to hit £100m next season.
But there is a fly in the ointment. Four teams – Arsenal, Chelsea, Manchester United and Manchester City – accounted for two thirds of the 12 WSL sides’ revenue, while the gap between highest earning and lowest earning grew from £10.3m to £14.1m.
This inequality is reflected starkly in the table: those teams made up the top four last season, and fifth-placed Brighton were closer in points terms to the bottom than the team directly above them. That, Deloitte says, could ultimately cause fans to switch off.
“For long-term growth to take place, competitive balance is a key priority,” said Tim Bridge, lead partner in the Sports Business Group, who floated the idea that the WSL might benefit from its own version of FFP (financial fair play) or PSR (profitability and sustainability rules).
“With the gap widening between the highest and lowest-earning clubs within the league, there’s a risk that this will lessen the jeopardy on pitch and the attention of fans. Sealing investment and commercial deals across the league, alongside implementing cost control interventions, may counter this to promote long-term stability across the pyramid.”
FFP, the first iteration of cost controls applied to both European and domestic men’s football clubs, mostly succeeded in reducing losses, while its successor PSR has done a similar job but by using different financial instruments.
On the flip side, cost control measures generally discourage investment – something women’s football can ill afford as it pursues an ambitious growth trajectory – and, in the case of FFP and PSR, have had little to no impact on competitive balance.
“Regulations within the game have to be fit for purpose, to ensure that they still spur investment across the league but make it so that there is on-pitch competitiveness,” Jennifer Haskel, knowledge and insights lead in the Deloitte Sports Business Group, told City AM.
Any WSL cost controls must be flexible
Rather than a hard salary cap such as those in English rugby union or American sports leagues, the WSL might therefore benefit from a more flexible cap, such as restricting wage bill to a percentage of revenue.
That would also likely head off possible legal challenges. However, with a 2022 study finding the average WSL salary was just £47,000 a year, any attempt at suppression would likely prove unpopular with players. Either way, implementing cost controls looks a delicate balancing act.
“Sometimes when we think about cost controls it is a strict line across the top. I think the fit for purpose angle of regulations is really important, especially when it comes to women’s football, which is continuing to grow, and needs to attract investment from not only external investors but fans who want on-pitch jeopardy, who want to see their team succeed,” said Haskel.
“I think we’re starting to see new ways in which ownership are investing, new ways in which brands are investing in women’s football that will allow, hopefully, for a bit more balance across the league going forward.”
The key for Women’s Professional Leagues Limited, which took over the running of the WSL from the Football Association last year, will be to consult with teams, owners, fans, broadcasters and sponsors to achieve the best outcome, says Deloitte.
“We know that there are different levels within the pyramid, so I think having a collaborative project in something like regulation is really important,” Haskel added.
“Regulations that can be flexible, that can change with the growth of the league as well, but ones that really take each different type of stakeholder into account and understand what the best way forward is.”
