Why are Staff Receiving Millions?

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Over the past few years the industry no longer views non-playing staff as annoying but necessary overheads, instead they are now viewed as key assets. Sporting Directors, Heads of Recruitment and Data Analysts are now part of a “staff transfer market” featuring compensation fees that rival the transfer fees of football players.

The Shift from Overhead to Asset

Historically, managers and staff were hired and fired with very high fluidity. Today, the clubs put much more emphasis on their staff recruitment processes. For instance, a Sporting Director who identifies undervalued talent generates hundreds of millions in value, meaning that this process could be more valuable to the club than the output of the player, as the club will now have a proven and effective recruitment model. Unlike players who can become injury prone or depreciate in value, non-playing staff are able to build infrastructure and a club vision that provides the club with a scalable foundation to build on long-term.

Key Staff Transfers from 2022–2026

Staff MemberOriginDestinationYearReported FeeRole
Graham PotterBrightonChelsea2022£21.5mHead Coach
Arne SlotFeyenoordLiverpool2024£9.4mHead Coach
Dan AshworthNewcastleMan Utd2024~£3mSporting Director
Enzo MarescaLeicesterChelsea2024£10mHead Coach
Ruben AmorimSporting CPMan Utd2024£9.25mHead Coach
Vincent KompanyBurnleyBayern2024£10.2mHead Coach

The Dan Ashworth Saga

The 2024 transfer of Dan Ashworth from Newcastle United to Manchester United is the definitive example for the increased value of non-playing staff.

  • The Valuation Clash: Initially valued at £10 million, arguing Ashworth possessed “Trade Secrets” and strategic intellectual property (IP). However, Manchester United valued the buyout at £2m–£3m.
  • Garden Leave: Newcastle placed Ashworth on leave in February 2024, for 5 months. For a director, a career hiatus of 5 months could be considered a career suicide due to the fast moving market of sporting directors in football, which could put him at a major disadvantage because Manchester United could have moved onto other targets during that time.
  • The Settlement: Manchester United agreed a £3million fee with Newcastle lower than the initial £10million valuation, however this worked out for Manchester United in the end as Ashworth had left the club after just five months by mutual termination.

Legal Mechanisms

Unlike players, who are governed by FIFA’s RSTP (Regulations on the Status and Transfer of Players), staff fall under domestic employment law.

  • Non-compete clauses: The government announced in May 2023 that they will cap non-compete clauses to 3 months as businesses typically set these clauses at 6 months. However, this is yet to come into power and football clubs can argue that “Trade Secrets” (scouting databases like Brighton’s scouting model) justify longer periods of garden leave.

Amortization and SCR

The shift from the Premier League’s old PSR to the UEFA-aligned Squad Cost Ratio (SCR) has also affected the financial management of backroom staff.

Using the same amortisation method that is used for player contracts and transfer fees, a £10 million fee for a director on a 5-year contract is amortised at £2 million per year. This smooths the impact on financial regulations but carries some risk.

  • Graham Potter: Chelsea paid £21.5m for Graham Potter and his staff. When they fired him after 7 months, the remaining book value had to be written off immediately, alongside paying his the termination fee, which would have cost them the additional millions.

The Verdict

The industry expertise and individual philosophies, defined as intellectual property, of backroom staff may define a club’s success over the next years. The most expensive signing of the summer may no longer be a striker or midfield maestro, instead it may be a Sporting Director sitting in the box.

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