At the same time, the UK has hit a bit of a spending boom, with mortgages and borrowing reaching record levels. But is this really an issue? 

To put our spending into perspective a new tool has been created which compares the heavyweight debt levels of the premier leagues 20 teams and pits them up against personal debt level in every postcode across the UK.

So is our borrowing activity at a level which could give the giants of the Premier League a run for their money?

Well surprisingly…yes! Here are just a few statistics taken from the tool which provide uncomfortable reading.

  • The residents of Burnley’s BB region have a total of £265m in personal debt, whilst their local football club has a debt of…£0! Sean Dyche and his club have this finance thing sorted out.
  • Liverpool’s L postcode has double the amount of debt than their retrospective football club does! 475m compared to 182m. 
  • Manchester United top the table for club debt with a sum of £503m, however the residents of the M postcode have out borrowed the club with a total personal debt sum of £599m.

Luckily for us, football can not only put our borrowing in perspective but can teach us a thing or two about finances. Courtesy of Know Your Money, here are three financial lessons that the beautiful game can help us understand.

Financial Fair Play

While your personal finances are very different to that of a football club, the ‘living within their means’ message of financial fair play is a useful one to mimic. The idea of sticking to spending the money you have available or setting yourself a budgeting target is a wise one and will keep you from digging yourself into a debt hole. Once you’ve set your goals (no pun intended), you’ll know whether you can afford to proceed into the “transfer market”…or not.

Sponsorship revenue

Whether it’s a company’s name on a shirt, on a stand or on advertising hoardings, sponsorship money is a rich source of revenue.

This is a great example of football clubs making the most of their resources to earn a little bit extra.

It’s similar to heading down to a car boot sale on the weekend and selling your unwanted belongings or renting out that spare room to make extra cash from the assets you already have. You might not make the millions premier league teams do from this activity but you might be surprised at how much making the most of your resources can earn you.

Wages to turnover

This is all about balancing the books. You might not have to muster enough cash to pay for a Premier League footballer, but it’s important to think about the proportion of your income you are spending on debt. A high household income is only good news if it isn’t accompanied by high debts just in the same way that a football club’s turnover has to be seen in relation to the amount it spends.