Premier League clubs spend a record £630m in summer transfer window
Tue 3rd Sep 2013 | Money & Finance
Player transfer spending by Premier League clubs in the summer 2013 transfer window was a record, according to analysis by Deloitte.
Gross spending totalled £630m, 29% up on the equivalent 2012 figure of £490m and £130m more than the previous record of £500m set in 2008.
Dan Jones, partner in the Sports Business Group at Deloitte, commented: “The story of this summer transfer window is of new records: a new record for Premier League spending as well as a new world transfer record fee. Premier League clubs’ gross spending this summer is £630m, beating the previous record of £500m set in 2008. Whilst the sale of Gareth Bale brought £85m into the Premier League, net spending is also a record, at £400m. As the financial rewards for participation and success in the Premier League increase, so it follows that clubs are investing on the pitch to ensure they continue to benefit from the remarkable Premier League growth story.”
Alex Thorpe, consultant in the Sports Business Group, added: “This is the first year that Premier League clubs will benefit financially from the league’s new broadcast deals; each club benefitting from a share of the extra £600m of revenues in 2013/14 alone. Testament to the impact this is having is in the scale of Premier League gross spending, as well as the gulf in net spending between the Premier League and other European leagues. Whereas many clubs around Europe have been reliant on selling players in order to spend, the financial advantages Premier League clubs enjoy has enabled net spending of £400m across the league. Many clubs, including new entrants to the league, have successfully competed in the European transfer market to attract high profile foreign talent.”
Dan Jones said: “While Premier League clubs are in a stronger position to afford increased transfer and player costs than ever before, the key challenge remains cost control. With regulations at both a league and continental level encouraging clubs to balance their costs with revenue, we hope that while these revenue increases allow the league to attract top players, they will also result in a more profitable picture across the league in the years to come.”
Some of the key findings from the analysis by Deloitte include:
- Premier League clubs have committed to around £630m in respect of player transfer fees in the summer 2013 transfer window, well above the £490m spent in summer 2012 and breaking the previous record of £500m set in summer 2008.
- Premier League clubs concluded player acquisitions totalling around £140m on deadline day. The equivalent deadline day figure in the summer 2012 was around £110m.
- The four Premier League clubs competing in this season’s Champions League - Arsenal, Chelsea, Manchester City and Manchester United - had a combined gross transfer spend of £230m this summer transfer window, representing 37% of the aggregate gross transfer spend by Premier League clubs.
- Gross transfer fees to overseas clubs were around £490m, over 60% up on the level seen in summer 2012. This represented 78% of aggregate gross transfer spend by Premier League clubs, as compared with 61% in summer 2012.
- Across all of the ‘big five’ top divisions of Europe, gross spending by clubs is up compared with last year. After the Premier League, the next highest spenders were La Liga and Serie A, each with a gross spend of £335m, followed by Ligue 1 with £315m and the Bundesliga with £230m.
- Premier League clubs’ net transfer spend, being the net amount that flows to overseas clubs (£370m) and Football League clubs (£30m), was also a new record of £400m, beating the previous record level of £250m set in summer 2012.
- Net transfer spending across Europe is a more mixed picture, with La Liga (£95m) and Serie A (£10m) generating surpluses from player trading this summer, while Ligue 1 (£130m) and the Bundesliga (£50m) both spent more than they received.
- In aggregate Football League clubs benefited from net transfer inflow of around £30m from Premier League clubs in summer 2013.
- Since the introduction of the transfer window system, gross player transfer spending has exceeded £5.3bn, with 80% of this being spent in summer transfer windows.
Posted by: Kev Howland
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