‘Everyone is chasing dreams’: EFL investment boom fuels wage inflation fears
English football’s lower leagues have rarely felt more fashionable among overseas investors, but Gillingham owner Brad Galinson believes the current spending race is pushing many clubs towards the edge. The American businessman has issued a stark warning about the fragility of budgets across the English Football League (EFL), arguing that financial shocks are never far away when squads are assembled on ever-rising wages.
“Almost every single club in the EFL is about seven days away from suffering the same fate as Sheffield Wednesday,” Galinson said, describing a landscape where ambition is often prioritised over sustainability. “Everyone is chasing dreams.” His comments come amid renewed debate about how clubs balance promotion pushes with the realities of gate receipts and commercial income outside the Premier League.
The steepest pressure point is player costs. In the past two seasons, squad budgets in League One have escalated sharply. According to reporting cited by The Guardian, only two League One clubs are operating with playing budgets below £3.5m this season, compared with 13 clubs at that level two years ago. Several clubs are also thought to be running budgets north of £10m — a figure that would have been exceptional at this level not long ago.
⚽ Key Insight
Within the game, plenty of executives have pointed to the so-called “Wrexham effect” — a shorthand for the growing belief that aggressive investment, smart marketing and global attention can transform even a modest EFL club into a fast-rising brand. The logic is seductive: spend now, climb quickly, and let the upside pay for the risk. But Galinson’s concern is that when multiple owners pursue the same strategy simultaneously, the inflation doesn’t just raise standards — it raises the baseline cost of competing.
That creates a harsh reality for clubs without owners prepared to subsidise losses for years. If rivals are offering Championship-level wages in League One, recruitment becomes an arms race, and even sensible operators can feel forced into unsustainable commitments just to keep pace. In that climate, a single run of poor results, a managerial change, or a missed promotion target can turn a bold plan into a balance-sheet emergency.
Infographic: EFL cost squeeze (at a glance)
Pressure: Wage inflation driven by promotion spending
Trend: Fewer League One clubs operating under £3.5m playing budgets
Risk: Budget plans vulnerable to short-term shocks
Flashpoint: “Dream chasing” culture as owners pursue rapid climbs
Key Takeaways
- Galinson warns many EFL clubs are financially fragile and vulnerable to sudden crises.
- League One spending has jumped, with far fewer clubs now operating under £3.5m playing budgets than two years ago.
- The ‘Wrexham effect’ is widely cited as a catalyst for investors backing faster, higher-risk promotion pushes.
- Competition inflation can force even cautious clubs into bigger wage commitments to remain competitive.
For investors, the EFL still offers tradition, passionate crowds and the possibility of outsized returns if a club climbs. But if wage growth continues to outpace revenues, the danger is that the romantic story of building a club up will become harder to justify — not because the dream has died, but because the price of dreaming keeps rising.
