Spending by Premiership clubs of around £70m is greater than in any of the previous three January transfer windows according to analysis by the business advisory firm Deloitte.

Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “English clubs have again demonstrated their ability to invest in players. Despite the lack of recent transfer activity by Chelsea, player spending of £70m is a record for a January transfer window. Overall, the Premiership clubs have spent around £300m in 2005/06, moderately up on spending of around £270m in each of 2003/04 and 2004/05.”

Some of the key findings from the analysis by the business advisory firm include:

• The aggregate reported spending by Premiership clubs for the Summer 2005 and January 2006 transfer windows of around £300m was moderately higher than in each of the previous couple of years (2004/05: £265m; 2003/04: £265m).
• Many overseas clubs benefit from player transfer spending by English clubs, with around £150m being redistributed overseas in 2005/06 (including almost £40m in the January 2006 transfer window).
• Over half of player transfer spending by Premiership clubs in 2005/06 has gone to non-English clubs (2004/05: 63%; 2003/04: 50%).
• In financial terms, there has been good news for clubs below the top tier in England, with over £50m of Premiership spending going to Football League clubs in 2005/06. Whilst Southampton and Norwich City have particularly benefited financially from player sales following relegation last year, in total over a dozen Championship clubs have each benefited by at least £1m.
• The ‘top spenders’ in January 2006 have been Manchester United, Arsenal and Portsmouth, helping to increase the overall reported spend to around £70m (up on the figure of around £50m in each of the January 2005 and January 2004 transfer windows, and £35m in January 2003).

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. Looking ahead to the Summer 2006 transfer window, Dan Jones said: “Whilst we still think that the Premiership holds the strongest hand in the transfer market and despite it being a World Cup year, we expect that the level of transfer spending by Premiership clubs will be lower in Summer 2006 than in 2005.”

Ends

Notes to editor

Basis of preparation
The information on player transfers is based on publicly available information in respect of player acquisitions by clubs, including from www.bbc.co.uk and www.premierleague.com, and further analysis carried out by the Sports Business Group at Deloitte. Further commentary about the transfer market is included in the Deloitte Annual Review of Football Finance. The figures contained in this release will not necessarily be the same as the cost of acquiring players’ registrations as recognised in the financial statements of each club. Under accounting requirements, the cost of acquiring a player’s registration includes the transfer fee payable (including any probable contingent amounts), plus other direct costs such as transfer fee levy and fees to agents.

About the Sports Business Group at Deloitte
Over the last 15 years Deloitte has developed a unique focus on the business of sport. Our specialist Sports Business Group offers a multi-disciplined expert service with dedicated people and skills capable of adding significant value to the business of sport. Whether it is benchmarking or strategic business reviews, operational turnarounds, revenue enhancement strategies or stadium/venue development plans, business planning, market and demand analysis, acquisitions, due diligence, expert witness, audits or tax planning; we have worked with more clubs, leagues, governing bodies, stadia developers, event organisers, commercial partners, financiers and investors than any other adviser. For more information, please visit: www.deloitte.co.uk/sportsbusinessgroup

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. Known as an employer of choice for innovative human resources programmes, it is dedicated to helping its clients and people excel. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.  The information contained in this press release is correct at the time of going to press.