Survey shows football club directors reaping large salaries

With stars, agents and managers making great pay, football club directors also are reaping the financial benefits.
 
A survey of the sport’s 20 best-paid directors revealed in The Guardian, according to the most recently published annual accounts, shows that six made more than GBP 500,000 last year in salary, bonus, pensions and other benefits. Four earned more than GBP 900,000.
 
Peter Kenyon of Chelsea still tops the list, as his GBP 2.684-million package includes GBP 2.4 million that Chelsea paid him for leaving his previous job at Manchester United. David Gill, who replaced Kenyon at Manchester United, reaped GBP 1.009 million for 11 months’ work, the best pay package among executives.
 
A study by the Chartered Management Institute and Remuneration Economics comparing the executives with those at non-football companies with a similar turnover confirmed that football directors are paid extremely well.
 
Gill, on average, would have to be running a company with a turnover greater than GBP 1.25 billion to receive a GBP 1-million package. United’s turnover last year, which was the highest of any football club, amounted GBP 159 million.
 
Freddy Shepherd and Douglas Hall, the directors of Newcastle United, actually were paid less last year than in 2004. But to receive the GBP 552,954 and GBP 495,951 they, respectively, earned in 2005, they would have to be running a company with a turnover of GBP 600 million, rather than the GBP 90.2 million Newcastle reaped from television, ticket sales, merchandising and catering.
 
At least one of England’s football directors was hit with a pay decrease. Southampton’s Rupert Lowe made GBP 264,000 after the club were relegated, as opposed to the GBP 397,189 he enjoyed the previous year. Overall, football directors received raises. Liverpool’s Rick Parry had his pay jump 12.6 percent to GBP 607,000, while 12.2 percent more went to Allan Duckworth of Bolton. Doug Ellis, paid by Aston Villa plc, received a 12.3 percent increase to GBP 296,555 in the year he turned 81.
 
No football director earned more than GBP 660,000 four years ago. The highest earner at the time was Richard Scudamore, the chief executive of the Premier League. Following him were then-Leeds director Peter Ridsdale at GBP 645,000 including a large bonus, and Bryan Richardson of Coventry City, who was paid GBP 633,193.
 
Four years ago, Richardson noted that players were much better paid than directors. “I'm the 29th-best paid person at the club,” he said.
 
Phil Townsend, Manchester United's spokesman, said Gill's pay package was justified.
 
“We are the world's biggest sports business and one of its most recognised brands,” Townsend said. “The factors that are taken into account in determining David's salary stretch beyond a back-of-the-envelope calculation based on turnover.”
 
Malcolm Clarke, the unpaid chairman of the Football Supporters' Federation, does not believe the directors need to make that much.
 
“These figures are mind-blowing to average football fans, many of whom do far more challenging and difficult jobs than running football clubs,” Clarke said. “The clubs have armies of loyal supporters and hefty TV deals done for them by the Premier League. It's clearly nice work if you can get it.”
 
Mark Palios, the accountant who resigned as the Football Association's chief executive in August 2004, was paid GBP 705,000 in compensation for leaving. Daniel Levy, Tottenham Hotspur's chairman, made the top 10 as his pay more than doubled, jumping from GBP 250,000 to GBP 525,000.
 
Arsenal vice-chairman David Dein's pay remained the same at GBP 250,000. Keith Edelman and Ken Friar, the two directors working most closely on the club's move to the Emirates Stadium, were paid considerably more than Dein, with Edelman's bonus of GBP 400,000 making his pay GBP 927,000.
 
Gordon Taylor, the chief executive of the Professional Footballers' Association, was paid GBP 723,311 last year. It is about seven times more than Tony Woodley, the general secretary of England’s largest union, the Transport and General Workers' Union, who has 835,000 members and a union income of GBP 63 million.
 
“My members approve it democratically,” Taylor said of his salary.
 
 
Top 20 earners
GBP 2,684,000* Peter Kenyon: chief executive, Chelsea
GBP 1,009,000** David Gill: chief executive, Manchester United
GBP 927,000 Keith Edelman: managing director, Arsenal
GBP 781,000 Richard Scudamore: chief executive, Premier League
GBP 723,311 Gordon Taylor: chief executive, PFA
GBP 607,000 Rick Parry: chief executive, Liverpool
GBP 552,954 Freddy Shepherd: executive chairman, Newcastle Utd
GBP 525,000 Daniel Levy: chairman, Tottenham Hotspur
GBP 518,976† Bruce Langham: former chief exec, Aston Villa
GBP 495,951 Douglas Hall: director, Newcastle Utd
GBP 416,000 Ken Friar: director, Arsenal
GBP 401,000 Michael Cunnah: chief executive, Wembley
GBP 304,000 Allan Duckworth: director, Bolton Wanderers
GBP 296,555 Doug Ellis: chairman, Aston Villa
GBP 291,197 John Williams: chairman, Blackburn Rovers
GBP 264,000 Rupert Lowe: chairman, Southampton
GBP 250,000 David Dein: vice-chairman, Arsenal
GBP 243,000 Phil Gartside: chairman, Bolton Wanderers
GBP 242,000 Karren Brady: managing director, Birmingham City
Figures for the year ending May or June 2005

* includes GBP 2,407,000 compensation for leaving Man United
** salary package was for 11 months to June 30 2005
† includes £145,000 paid on termination of contract in May 2005