Damallsvenskan spending too much on player wages?

The yearly financial report for Damallsvenskan shows that the total turnover for the league continues to increase and was 15 % larger in 2006 than the year before, combined club incomes now at SEK 48,7 millions. But at the same time spending is growing faster than revenues and the combined result for all clubs in 2006 showed a SEK 2,5 millions deficit. And since the increased revenues were entirely explained by the new TV deal 2006, the economic result caused some concern. Umeå, Qbik and Djurgården all showed big deficits (SEK 1,7 millions, 1 million and 600,000 respectively), deficits that cannot be repeated in 2007 without forcing the clubs into bankrupcy. The growing cost for player wages, that now accounts for 25 % of the total spending in the league (compared to 18 % in 2005 and 5 % in 2002) was pointed out as one of the main problems.
The Swedish FA's auditors expressed particular concern for the Stockholm clubs. Hammarby and Djurgården were the two clubs with the smallest earnings and Djurgården the only club that, in spite of the big increase in TV revenues, showed a decrease in incomes 2006. On the bright side, all clubs were granted a renewed Damallsvenskan license for 2007.

Some interesting facts from the audit:
In spite of the big drop in match attendance, ticket revenues grew from SEK 3,1 millions to SEK 3,4 millions. Appearently the clubs are getting better in attracting full price paying costumers to their matches. Most clubs use heavily discounted team tickets for youth teams and occasional free entrance matches to boost attendancy figures. The average income per spectator grew from around SEK 20 to SEK 30 in 2006. The full ticket price usually is somewhere between SEK 70 and SEK 100.
Umeå is still the biggest club in financial terms, with a SEK 9 million income 2006. But their growth has been only 89 % since 2001, the lowest growth rate in the league. All other clubs have at least doubled their incomes and the fastest growing club economy is Sunnanå with a 346 % increase since 2001.
If you try to make some kind of cost-benefit analysis, you can see that the Stockholm clubs Djurgården and Hammarby are the most successfull in getting value for money, spending about SEK 75,000 for every point earned in the league. Umeå had to spend SEK 169,000 per point and Qbik, with their costly but unfullfilled ambition to establish the club at a midlevel position, topped the list with a staggering SEK 469,000 per point.
The average player wage 2006 was SEK 48,500 a year, almost the double of the 2005 average 25,000 and 14 times as large as the 2001 average. But the wage span is huge. It would take more than a full 11 player team earning nothing to make up for one Marta.
The full audit report can be found at
Svensk Fotboll (pdf document).
Svenska Dagbladet: Damallsvenskans toppklubbar gör katastrofresultat

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