According to Bild reporter Tobi Altschaffl, Bayern Munich has offered young full-back Alfonso Davis a contract extension worth around €120 million, but the club is also under pressure to slash its wage bill.
Details of renewal:
Total contract value: Alfonso Davis’ contract extension is worth up to 120 million euros,
Salary: Davis is paid 15 million euros a year.
Floating bonus: The contract contains a floating bonus of 5 million euros.
Signing fee: Davis will receive a signing fee of 20 million euros.
Length of contract: The contract covers salary and additional terms for the next five years.
Bayern salary expenditure:
Current payroll costs: Bayern Munich’s total payroll costs are around 320 to 340 million euros.
Target payroll expenditure: In order to achieve financial sustainability, the management of the club has set a target of keeping the total payroll within 300 million euros.
Challenges and countermeasures:
Key players get a raise: Key players such as Alfonso Davis, Mousciara and Kmihi will all get a raise in the new contract, which poses no small challenge for the club.
Optimizing the salary structure: Athletic Director Ebel needs to take a number of steps to optimize the team’s salary structure, including looking for savings elsewhere.
Personnel changes: The club plans to reduce the number of highly paid players in favour of those with lower salary demands, and several players have already been informed that the club plans to let them go in the summer transfer window.
To sum up, Bayern Munich are also under pressure to spend on wages while re-signing Alfonso Davis. In order to achieve financial sustainability, the club needs to take a series of measures to optimize the salary structure and make corresponding adjustments to the staffing of the team. This strategy is already in action and is expected to be reflected in the summer transfer window.
