Transfer spending by Premiership clubs over the past month was over £60m, not quite reaching the record level of January 2006 (£70m), 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 £60m 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 (£70m), but up on levels of spending in each of the previous transfer windows (2005: £50m; 2004: £50m; 2003: £35m).
• 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 £15m), 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 £325m is up on 2005/06 (£300m), which in turn was higher than in each of the previous couple of years (2004/05: £265m; 2003/04: £265m).
• 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 £300m 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

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. 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.