Premier League spending down 10 percent

Player transfer spending by Premier League clubs was around £450 million in the summer transfer window, according to analysis by the business advisory firm Deloitte.Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “After last summer’s record £500m of transfer spending, Premier League clubs’ spending is down 10 percent to £450m this summer."Whilst the level of player acquisitions from other Premier League clubs matched the previous record level, the level of acquisitions from overseas clubs was around 40 percent down compared to each of the transfer windows in summer 2007 and 2008."The reduced value of Sterling against the Euro and the proposed increase in the top rate of income tax are contributing factors to this.”Reflecting on the level of net spending, being the net amount that flows to non-English clubs and Football League clubs, Jones remarked:  “Premier League clubs received over £110m in transfer fees from Real Madrid alone.Combined with the lower level of player acquisitions from overseas clubs, Premier League clubs’ overall net transfer spending was £80m.This is down significantly compared to over £200m in each of the summer 2007 and 2008 transfer windows. Net spending comprised £8m to overseas clubs and £72m to Football League clubs.”

Some of the key findings from the analysis by Deloitte include:Premier League clubs have committed to around £450m in respect of player transfer fees in the summer 2009 transfer window. This is £50m/10 percent below last year’s record amount.Manchester City’s transfer spending has been a key driver of the overall level of spending in summer 2009, with the club’s acquisitions of around £120m representing 27 percent of total spending. Each of Aston Villa, Liverpool, Sunderland and Tottenham Hotspur has reportedly spent more than £25m on player acquisitions in the summer transfer window.Premier League clubs have spent around £215m on players from other Premier League clubs; equivalent to the record level in 2008. This intra-Premier League spending represents almost half of total transfer fees committed by Premier League clubs, which is a higher proportion than in previous transfer windows.Transfer fees to overseas clubs was £155m, down by £95m compared to summer 2008. This represents 34 percent of total transfer fees committed by Premier League clubs (50 percent in summer 2008). This level of spending slightly exceeded transfer fees received from overseas clubs, of which around three-quarters was from Real Madrid.Premier League clubs’ net transfer fee spending declined to c.£80m, being the net amount that flows to overseas clubs (£8m) and Football League clubs (£72m). This is a significant reduction compared to summer 2008 (£215m) and summer 2007 (£240m).Premier League clubs’ transfer fee spending in the summer window has again exceeded that in other European leagues, albeit not by as much as in previous seasons. Spending by Real Madrid and Barcelona has boosted summer 2009 transfer spending by clubs in Spain’s top division to around £400m. Italian Serie A clubs have spent around £350m and the clubs in the top division of each of France and Germany have spent around £200m.Football League clubs have spent around £20m in summer 2009.Net of amounts received from Premier League and overseas clubs, the Football League clubs benefit from a net inflow of around £72m this summer.Summing up the findings and looking to the future, Paul Rawnsley, Director in the Sports Business Group at Deloitte, said: “As expected, despite the significant spending by Manchester City, Premier League clubs’ transfer spending declined in summer 2009."Economic conditions may improve in 2010 and the Premier League is expected to secure enhanced values for international media rights generating higher revenue for Premier League clubs."However, without further significant capital injections from owners, transfer spending is unlikely to exceed the record level achieved in 2008."