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Financial Pressure Leads To Fall In Transfer Activity

Tue 24th Jul 2012 | Money & Finance

Football clubs feeling the financial strain has led to a drop in transfer spending according to the latest biannual report from FIFA’s Transfer Matching System (TMS).

The report, based solely on the details of each individual transaction entered directly into the TMS by professional clubs between 1 January and 30 June 2012, showed nine per cent fewer international transfers were completed in the first half of this year (2012) compared to the same period in 2011.

A total of 4,973 player moves were recorded, with 72 per cent of those deals concerning players out of contract at the moment of their transfer. There was also a three per cent drop in terms of transfers arising out of agreements between clubs, 55 per cent coming in the form of a permanent deal or a loan with financial compensation.

The report showed that total transactions amounted to USD 576m for 2012, a decrease of USD 294m or 34 per cent compared to the same period in 2011, with the overriding factor behind the drop attributed to the international recession and the impact it is having on professional clubs. In addition, wealth is now overwhelmingly concentrated among a select few national associations, while UEFA's Financial Fair Play regulations are prompting sides to act more prudently in the market.

Player movement nonetheless remains a global phenomenon, with no fewer than 157 of FIFA's 209 member associations involved in one or more international transfers during the first half of the year. Of those, Brazil was the most active, with 700 players either entering or leaving the country, putting it far ahead of second-placed England on 326.

In terms of the sums paid, no association spent more than Russia, where clubs laid out a total of USD 64.4m, though Portuguese teams invested more per deal, spending an average of USD 3.4m on each move involving a fee.

With a combined outlay of USD 57.4m, France was third on the overall list behind Russia and Brazil and ahead of England, Spain and China PR – despite Paris Saint-Germain's most recent high-profile deals coming after the six-month cut-off point. Brazilian sides received the most money from transfer fees, meanwhile, adding USD 64.9m to their coffers.

The FIFA Transfer Matching System (TMS) is an online system that makes international transfers of players between clubs quicker, smoother and more transparent. Introduced in February of 2008 with a test phase, the system is now used for all international football transfers in all 208 FIFA member associations and by over 4600 clubs worldwide.

Posted by: Aaron Gourley

http://www.buttonshut.com http://www.buttonshut.com http://www.buttonshut.com

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