Carlisle United’s reported £7m wage bill despite finishing bottom of League Two has highlighted the growing financial imbalance across the EFL and raised fresh questions about sustainability in the lower leagues.
Figures circulating this week suggest Carlisle were operating with a wage bill that would not look out of place in League One, yet the club still finished bottom of League Two, underlining how spending alone is no guarantee of success.
The situation appears to stem from a difficult two-year period in which ownership attempted to push the club forward quickly, only for results on the pitch to collapse. Recruitment decisions, managerial changes, and contracts handed out during a relegation battle have reportedly left the club carrying high earners who are now playing at a lower level than originally planned.
Familiar story
It is a familiar story across the EFL. Clubs chasing promotion often gamble on wages and transfer fees in the hope that success will cover the costs. When it works, the rewards are huge. When it fails, the financial consequences can last for years. What is sad is that these spendings have come after the likes of Wigan, Bolton and Reading have had similar struggles. Football is not learning a lesson, and while fans are the ones who suffer, they’re also complicit.
When Carlisle got their cash injection and started making big money signings, like Luke Armstrong, there wasn’t a huge clamour from supporters for them to be frugal. When a wealthy owner comes in, fans think Christmas, Easter and a lottery win have all arrived at once, and immediately the blinkers go on. In very few instances is a cash injection, often the start of a club’s problems, met with anything other than delight. It’s all sweetness and light while the chequebook is out, and no thought is given to the future consequence. Fans can deny it, they can claim they’re the ones who suffer, but in most instances, those same fans are nothing but hypocrites, begging their chairman to release funds for players every time a transfer window opens.
Social media makes it worse, and fans of clubs like Huddersfield Town should take note. Perhaps when HMS Pass The League (I think that’s right) sets sail again next season, there might be one or two Terriers’ supporters who actually speak up about trying to buy success and failing, every single season, and reflect on the damage it does to the wider game.
A tenner says there won’t be one. There never is, because while a club is spending, nobody cares. It’s only when the buckets start rattling, kids start crying, and lifelong fans are desolate as their club. lurches towards administration, that those supporters want change. Just ask Wigan, who seem to go from buckets to boom and back every few seasons.
Others in peril
Carlisle are not the only example of the financial strain within the Football League. Reading reportedly made around £9.5m in player sales and still recorded significant losses, while other clubs such as Barnsley and Exeter City have already begun cutting costs and restructuring budgets in an attempt to remain sustainable.
Exeter are the ones who truly deserve sympathy, as they’re trying to do things the right way in a culture where the ‘right’ way leaves you miles behind the opposition. Wages go up every year as Huddersfield and the like pay more money for the same pool of players, and it forces those doing the right thing out of the market and the division.
The issue is not just about how much clubs spend, but how they spend it. Poor recruitment, long contracts handed out during survival battles, and changes in management style can quickly leave clubs with squads that are expensive but not competitive. Once relegation happens, those contracts become even harder to manage.
There is also the geographical factor for some clubs. Teams in more remote locations sometimes have to offer higher wages to attract players willing to relocate, which can inflate wage bills compared to similarly sized clubs in more central areas. That is also an easy defence to hide behind for some.
What the Carlisle situation really shows is the growing financial divide within the EFL. Clubs are spending more than ever chasing promotion, but the margin for error is incredibly small. One failed push, one poor recruitment window, or one relegation can leave a club carrying a wage bill completely out of proportion with their league position.
Light at the end of the tunnel
There is light at the end of the tunnel, to a degree. Lincoln City are 17th in the League One budget table, but are currently top by some margin. They’re in their lofty position despite having just 25% of Luton Town’s budget, and a mere 50% of Wycombe Wanderers’. They are proof that trying to do it the right way, albeit with around a £3m loss, is possible. How sad that a club losing £3m a year are generally regarded as the beacon of hope for others.
Lincoln City’s wage bill this season is believed to be around the £5m mark, which would mean they’ve spent £2m less on players who are top of League One than Carlisle spent on players who brought relegation from the Football League.
Let that sink in next time Conor Hourihane starts saying Barnsley can’t be competitive.
With more clubs now starting to reduce costs and focus on sustainability rather than gambling on promotion, there may be a shift in how teams operate over the next few years. The Carlisle example could end up being seen as a warning sign rather than just an isolated case.
Spending money can help clubs move forward, but only if it is spent wisely. Otherwise, as Carlisle have shown this season, a big wage bill does not guarantee anything except bigger problems if results do not follow.
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