Premier League clubs spend £490m in summer transfer window
1 September 2012
Player transfer spending by Premier League clubs was around £490m in the 2012 summer transfer window, marginally up from the £485m spent in summer 2011 but just short of the £500m record of 2008, according to analysis by the business advisory firm Deloitte.
Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “This year we have seen another busy summer transfer window, with Premier League clubs spending around £490m, marginally up from last year and close to the record summer spend of 2008. While the highest levels of spending continue to be at those clubs competing at the upper end of the Premier League and in European competition, we have also seen significant investment by the newly promoted teams, looking to establish themselves in the Premier League.”
Alan Switzer, Director in the Sports Business Group added: “While the total spending this summer is still high, it 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.”
Dan Jones said: “While the new broadcast deals further demonstrate the commercial strength of the Premier League, 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, in the case of the top clubs, continue on the road to compliance with UEFA’s Financial Fair Play regulations.”
Some of the key findings from the analysis by Deloitte include:
• Premier League clubs have committed to around £490m in respect of player transfer fees in the summer 2012 transfer window, slightly above the level seen in summer 2011.
• Premier League clubs concluded deals totalling around £110m on deadline day. The equivalent deadline day figure in the summer 2011 was around £100m.
• This summer, each of Chelsea, Tottenham Hotspur, Manchester City, Manchester United and Arsenal have exceeded £30m of gross transfer spending. In aggregate these five clubs have committed to around 55% of Premier League clubs’ transfer fees in the 2012 summer transfer window.
• Transfer fees to overseas clubs were around £300m, almost 50% up on the level seen in 2011. This represented 61% of total transfer fees committed by Premier League clubs, as compared with 42% in 2011.
• Compared to the top leagues in other countries, the Premier League generates significantly more revenue and continues to redistribute significant financial value to overseas clubs through the player transfer market. Clubs in Germany, France and Holland have particularly benefitted this summer.
• Gross transfer spending trends across the top divisions of Europe are mixed as compared with last year, with top division clubs gross spending in France (around £190m) and Germany (around £210m) up versus last summer. While spending in Italy (around £310m) and Spain (around £110m) are at lower levels than the last summer window.
• Premier League clubs’ net transfer fee spending was a record level of £250m in 2012, being the net amount that flows to overseas clubs (£200m) and Football League clubs (£50m). (Previous years: 2011: £180m; 2010: £200m; 2009: £85m; 2008: £215m; 2007: £240m).
• Football League clubs benefited from a total net transfer spending inflow of £50m from Premier League clubs in summer 2012.
• Since the introduction of the transfer window system, gross player transfer spending has exceeded £4.6bn, with 80% of this being spent in summer transfer windows.
Note: The figures represent the aggregate of reported transfer fees committed in respect of player registrations in the summer transfer window by Premier League clubs. 'Overseas' icludes all fees committed to non-English clubs and amounts paid to other parties.
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.
Notes 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 00:30 on 01 September 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 strategic business reviews, operational turnarounds, revenue enhancement, stadium and facilities development plans, business planning, feasibility studies, economic impact studies, due diligence, benchmarking, reviews of sports regulations, market analysis, corporate finance advisory work, valuations and bid support on acquisitions and disposals; we have worked with more clubs, leagues, governing bodies, stadia developers, event organisers, commercial partners, financiers and investors than any other adviser.
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