Premier League clubs’ transfer spending up 33%

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Updated: September 1, 2011

Player transfer spending by Premier League clubs was around £485m in the 2011 summer transfer window, up £120m (33%) on summer 2010, according to analysis by the business advisory firm Deloitte.

Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “Premier League clubs have spent around £485m which is significantly up on last summer and at a similar level to that seen in the busy summers of 2007 to 2009.  This summer’s spending is largely focussed amongst the top end Premier League clubs most strongly competing for domestic and European success and the consequent financial rewards.”

Commenting on other trends apparent from the analysis, Jones said: “The football authorities’ encouragement for home grown players has contributed towards the increased scale of fees for the transfer of young English talent this summer.  The resurgence of transfer spending is also apparent in other top European leagues.  Despite domestic difficulties delaying the start of their seasons, transfer spending is considerably up amongst clubs in Serie A and La Liga.  As in England, in order to meet UEFA’s break-even requirements, clubs will need an appropriate balance of revenue generation against these expenditures.”

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

§  Premier League clubs have committed to around £485m in respect of player transfer fees in the summer 2011 transfer window; £120m/33% above the level in summer 2010.

§  Premier League clubs concluded around £100m of transfer fees on deadline day.  The equivalent deadline day figure in January 2011 was around £135m, and for summer 2010 it was around £35m.

§  This summer, each of Arsenal, Chelsea, Liverpool, Manchester City and Manchester United have exceeded £50m of transfer spending.  In aggregate, these five clubs have committed to around 66% of Premier League clubs’ transfer fees in the summer 2011 transfer window.

§  Regulatory encouragement for home grown players from both the English football authorities and UEFA has contributed towards the increased scale of fees for the transfer of young English talent this summer.   This summer Premier League clubs have spent around £165m on English players, being around 34% of their total spending, albeit the comparable figure for summer 2010 (£50m/14%) was an anomaly.

§  Transfer fees to overseas clubs were around £205m, 25% down on the level in summer 2010.  This represents 42% of total transfer fees committed by Premier League clubs (the equivalent figure of 75% in summer 2010 was unusually high compared to other transfer windows).  This level of spending significantly exceeded transfer fees received from overseas clubs.

§  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 Spain, Belgium, Netherlands, France and Italy have particularly benefitted this summer.

§  Gross transfer spending in summer 2011 by top division clubs in Italy (around £400m), Spain (around £300m) and France (around £165m) is also higher than 2010; with spending up by a higher percentage than in England in each of those countries.  Spending by top division clubs in Germany was at similar level to summer 2010.

§  Premier League clubs’ net transfer fee spending decreased to around £180m (2010: £200m; 2009: £85m; 2008: £215m; 2007: £240m), being the net amount that flows to overseas clubs (£120m) and Football League clubs (£60m).

§  Football League clubs have reportedly spent around £30m in summer 2011.  Net of amounts received from Premier League and overseas clubs, the Football League clubs benefit from a net inflow of around £60m this summer; significantly up on summer 2010 (£25m).

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