My takeaway from the interview is that our budget is £34m (85% of £40m income) . In addition, under the new EFL rules, a further £33m is available in any three-year period (with a maximum of £15m payable to the club by the owners in any one year). The budget therefore is a minimum of £34m this year or if they think this is the best year to push for promotion, it could be up to £49m.
They also recognise that the “budget” is the cornerstone of success. The owner during the interview pointed out ”the very strong correlation” between final league position and the size of the budget (presumably this means that there is at least a 95% confidence interval given the language he used and his formal leanings towards data analysis as an individual) .
However, it’s important under the EFL spending rules to not confuse budget available to Chris wilder and the amount he has available for spending on players. Chris gets a budget but he has significant overhead and recurrent costs as well as major support staff costs. For example, we’ve seen the value of boosting medical staff costs in recent years to stem the number of first team player injuries and recovery times. We also all know the value of spending major amounts on our academy to upgrade it. Even things like club travel costs for players and support staff to away matches will cost circa 1% of the total budget .
So the owner discusses budgets in the round. Player budgets (and the small subset of that in transfer fees) is one component of the budget Chris manages and there are many competing calls on his budget where the opportunity costs of not spending are far greater.
Chris has to make these decisions (eg. Whether to spend on developing the academy and medical team, or to pay the wages and/or sign on fee for another striker.
I found the interview a great insight into the difficult decisions confronting a manager and how us fans are mostly only interested in him spending on marquee items like high fee player transfers, and often forget that this can mean the continuing lack of development of the academy (and therefore future income stream), scouting team (to improve the quality and success of our new signings), medical team (to
Reduce injuries and time spent recovering), marketing team (to increase revenue), etc