Premier League summer transfer spending reaches £380m with one day to go
31 August 2012
Deloitte, the business advisory firm, will release its analysis of the 2012 summer transfer window on Saturday 1st September 2012. At the start of the final day of this summer’s window, Deloitte’s analysis shows that gross transfer spending by Premier League clubs is £380m, a similar amount to that seen at the beginning of the final day of transfer activity last summer.
Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “As the final day of the transfer window gets underway, we expect to see Premier League clubs being very active again. While there has been significant spending already this summer, totalling around £380m, there are still a number of clubs likely to be concluding deals right up to the deadline.
“While spending in this transfer window looks set to be close to record levels, this should be considered in the context of increases of over 70% in the Premier League domestic broadcast deals announced earlier this year. Once overseas broadcast deals are factored in, the average Premier League club looks set to benefit from at least an additional £25m of revenue per year from next season. Nonetheless, the key challenge for Premier League clubs is how they manage their costs – notably transfer expenditure and players’ wages - so as to retain more of this increased revenue, address falling profits and for the top clubs continue on the road to compliance with UEFA’s Financial Fair Play regulations.”
Premier League clubs' estimated January transfer fee spend 2003 to 2012 (£m)
Note: The figures represent the aggregate of reported transfer fees committed in respect of player registrations in the January and summer transfer windows by Premier League clubs. 'Overseas' includes all fees committed to non-English clubs and amounts paid to other parties.
Premier League clubs' gross transfer spending by transfer window 2001 to 2012 (£m)
Note: The figures represent the aggregate of reported transfer fees committed in respect of player registrations in the January and summer transfer windows by Permier League clubs.
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. The information is based on reported transfers as at 09:00 on 31 August 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
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The information contained in this press release is correct at the time of going to press.
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