Player transfer spending by Premier League clubs was around £150m in the January transfer window, more than double the amount spent in previous January transfer windows, according to analysis by the business advisory firm Deloitte.

Paul Rawnsley, Director in the Sports Business Group at Deloitte, commented: “The record January figure comes as no surprise.  Premier League clubs are investing some of the additional £300m broadcast revenue received in 2007/08 to strengthen their playing squads as they seek to challenge for the top spot, secure qualification for European club competitions or retain Premier League status.  Whilst gross transfer spending was £150m, Premier League clubs’ net spending was only around half that figure – taking into account transfer receipts from non-English and Football League clubs and transfer spending between Premier League clubs.”

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

• Premier League clubs have committed to around £150m in respect of player transfer fees in January 2008 (2007: £60m; 2006: £70m; 2005: £50m; 2004: £50m; 2003: £35m).
• The top transfer spenders in January 2008 were Chelsea (c.£27m) and Tottenham Hotspur (c.£20m). The January transfer window was the first chance for their respective new team managers to make changes to the playing squad.
• Chelsea’s acquisition of the registration of Nicolas Anelka for a reported £15m represents the highest ever January transfer move and is one of only six moves for reported values of £10m or more since the mid-season window was introduced in January 2003.
• The top seven reported player moves total around £70m and account for almost half of the total January spending.
• Spending between Premier League clubs of around £55m accounts for around 40% of all Premier League clubs’ transfer spending.  Premier League clubs’ net transfer spend was around £75m, being the net amount that flows to non-English clubs and Football League clubs.
• Premier League clubs’ transfer spending in the January window has again far exceeded that in other European leagues, with the 20 Premier League clubs committing more than the aggregate disclosed amounts spent by all top division clubs in the other ‘Big 5’ European Leagues in France, Germany, Italy and Spain.
• Gross spending by Football League clubs in January 2008 has increased to an estimated £30m (2007: £18m).

When the Deloitte Football Money League is published later this month, it will confirm the position of several Premier League clubs amongst the ‘Top 20’ highest revenue generators in the world.

Reflecting on the overall trends and looking ahead to the Summer 2008 transfer window, Alan Switzer, Director in the Sports Business Group at Deloitte, said: “We expect the showcase of talent at UEFA EURO 2008 to act as a catalyst for further transfer activity this summer.  Given the additional broadcast monies and changes in club ownership and team management it is possible that gross transfer spending by English clubs will reach or even exceed the record level of £500m that was spent in Summer 2007.” 

Ends

Note to editors

Basis of preparation
The information on player transfers is based on publicly available information in respect of player registration 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 further information on our services you can access our website at 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.  Deloitte & Touche 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 acts or 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.