Transfer spending by Premiership clubs over the past month was over £60m, not quite reaching the record level of January 2006 (STG70m/EUR106m), but ahead of spending levels in each of the previous transfer windows according to analysis by Deloitte.

Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “Despite the lack of recent transfer activity by some of the Premiership’s biggest clubs, player spending was still over STG60m/EUR91m in the January transfer window.  The prospect of enhanced broadcasting monies from next season has been a key driver for some clubs at both the lower end of the Premiership and amongst the Championship clubs.”

Some of the key findings from the analysis by Deloitte include:

• Clubs have committed to over £60m in respect of player transfer fees in January 2007, down on the record high of January 2006 (STG70m/106m), but up on levels of spending in each of the previous transfer windows (2005: STG50m/EUR76m; 2004: STG50m/EUR76m; 2003: STG35m/EUR53m).
• The ‘top spenders’ in January 2007 have been West Ham United and Aston Villa.  Both clubs have undergone a change of ownership in recent months and the January transfer window was the first chance for their respective new team managers to change the playing squad. 
• Compared to previous January transfer windows, the redistribution of monies to overseas clubs has been relatively low (around STG15m/EUR23m), although for 2006/07 as a whole almost half of player transfer spending by Premiership clubs has gone to non-English clubs.
• Consistent with prior years, Premiership clubs’ transfer spending again far exceeded that in other European leagues.  Gross spending by Premiership clubs was double the amount spent by Spanish Primera Liga clubs, and more than the aggregate spent by all top division clubs in Italy, France and Germany.
• The aggregate reported spending by Premiership clubs for the Summer 2006 and January 2007 transfer windows of around STG325m/EUR491m is up on 2005/06 (STG300m/EUR454m), which in turn was higher than in each of the previous couple of years (2004/05: EUR265m/EUR401m; 2003/04: STG265m/EUR401m).
• Championship clubs have spent more in the past month (around £20m) than in any of the previous four January transfer windows.  Although based on the reported figures the clubs still generated an overall positive balance as sales exceeded purchases.

When the Deloitte Football Money League is published later this month, it will affirm the position of several Premiership clubs amongst the ‘Top 20’ highest revenue generators in the world.  Reflecting on the overall trends and looking ahead to the Summer 2007 transfer window, Dan Jones said: “Overall, the Premiership clubs have spent over STG300m/EUR454m on player transfers in 2006/07.  We can expect to see those levels at least maintained in summer 2007 driven by the additional TV monies and new investors at some clubs.”

Ends

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