Premier League clubs’ transfer spending cut
1 February 2012
Premier League clubs spent around £60m in the January transfer window, according to analysis by business advisory firm Deloitte, a reduction of 70% on the record level of £225m in January 2011.
Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “After last year’s bout of big money transfers that drove the record total spend of £225m, January 2012 has seen a more sober level of spending amongst Premier League clubs.
“In the decade since the introduction of transfer windows, January has typically been a relatively quiet window with total spending driven by a few high value transfers, as was certainly the case with the chain of events on last year’s deadline day. The £60m spent in January 2012 is back to a similar level as the January windows in 2004 to 2007, and still ahead of the investment in players by top division clubs in other European leagues.”
Commenting on the downturn in transfer window activity, Dan Jones added: “As clubs are now in the reporting period that will count towards the first assessment for UEFA’s financial fair play break-even requirement, their comparative restraint is indicative of an overriding reflection on spending levels. The focus on football’s future financial sustainability is more prevalent in Europe than at any time in the past 20 years and, going forward we remain keen to see that translated into a better balance between revenue and expenditure.”
Some of the key findings from the analysis by Deloitte include:
Looking ahead to the summer 2012 transfer window, Dan Jones commented: “Whilst it’s been a relatively sparse January, we can again expect an active summer window following Euro 2012. The global popularity of the English game helps drive continuing growth for Premier League clubs’ revenues, with transfer spending further supplemented from the pockets of some owners.”
When the Deloitte Football Money League is published in February, it will confirm the position of several Premier League clubs amongst the ‘Top 20’ highest revenue generators in the world.
Notes to editors:
Basis of preparation
Deloitte has produced analysis of transfer spending by clubs in respect of each of the transfer windows over the past 10 years.
The information on player transfers is based on publicly available information in respect of the acquisition of players’ registrations by clubs, including from www.bbc.co.uk and www.premierleague.com, and further analysis carried out by the Sports Business Group at Deloitte. The information is based on reported transfers as at 00:01 on 1 February 2012, following the close of the January transfer window at 23:00 on 31 January 2012. 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 20 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
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
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The information contained in this press release is correct at the time of going to press.
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