Spending by English clubs of over £300m this summer is the highest since the introduction of the current system of transfer windows according to analysis by Deloitte.

Paul Rawnsley, Director in the Sports Business Group at Deloitte, commented: “Renewed financial confidence from the TV deals announced earlier this summer and the World Cup shop window effect have helped fuel the increase in transfer spending by Premiership clubs.  Overall the Premiership clubs have spent over £330m in 2006, including over £260m this summer, which is up on spending in each of the previous years since the transfer windows were introduced and far in excess of spending by other European leagues.”

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

• The aggregate reported spending by Premiership clubs in 2006 of over £330m is greater than in each of the previous three years (2005: £285m; 2004: 260m; 2003: £250m).
• Chelsea has again topped the list of spenders in 2006 with around £70m invested.  This takes their reported spending on player acquisitions since July 2003 to over £375m - around one-third of overall spending by Premiership clubs in that period.
• English football continues to redistribute a significant amount of its revenue to the benefit of overseas clubs.  Over half (£180m) of disclosed transfer spending by Premiership clubs in 2006 has gone to clubs outside of England.
• Spending by English clubs again far exceeds that in other European leagues.  Gross spending by Premiership clubs in Summer 2006 is around double that of the clubs in the Spanish Primera Liga, and around four times greater than clubs in the top divisions of each of France, Germany and Italy.
• Football League clubs have received over £60m from Premiership clubs in 2006, with nine clubs benefiting by over £2m each.  After transfer monies going to Premiership clubs, based on the disclosed figures the overall ‘domestic balance of payments’ is an inflow to Football League clubs of around £45m.

Chart 1: Recipients of reported gross player transfer spending by Premiership clubs: 2006 (PDF, 40 KB)

Summing up the findings and looking to the future, Alan Switzer, a senior Sports Business Consultant at Deloitte, said: “The levels of transfer spending again indicate the financial strength of the top level of English football.  The arrival of more star names is great news for fans and reflects the Premiership’s status as the world’s richest league.  Nonetheless, over the next couple of years there’ll be a continuing challenge to balance spending to ensure the benefits of revenue growth continue to be felt in areas other than player salaries and transfer fees.”

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.  There are several transfers for which there is no transfer fee disclosed.  Further commentary about the player 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.

Deloitte & Touche LLP is based in 21 UK locations, with over 9,500 staff nationwide and fee income of £1,355 million in 2004/2005. It is a member firm of Deloitte Touche Tohmatsu, a leading professional services organisation, delivering world class audit, tax, consulting and corporate finance services, with around 120,000 people in over 140 countries. Deloitte Touche Tohmatsu is a Swiss Verein, and each of its national practices is a separate and independent legal entity.

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.