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Total January spend of £175m sees Premier League transfer spending surpass £1 billion in a season for the first time

Tue 2nd Feb 2016 | Money & Finance

Premier League clubs spent £175m in the January 2016 transfer window, according to analysis by Deloitte, the business advisory firm.

This brings the total gross spending by Premier League clubs for the 2015/16 season to over £1 billion, a new record. This surpasses the previous season record of £965m, set last season.

Dan Jones, partner in the Sports Business Group at Deloitte, commented: “Premier League clubs have chosen to spend significantly in this year’s January transfer window, in what has been the biggest January window for five years. A total spend of £175m this window has contributed to Premier League clubs passing the £1 billion threshold for spending in a season for the first time.

“Notably, this January’s spending has been driven in large part by clubs in the bottom half of the table. The promise of the new broadcast deal for Premier League clubs from next season onwards and the threat of missing out through relegation is contributing to clubs investing in an attempt to stay in the league.”

The combined spend by those clubs currently in the bottom six was £90m this January, representing more than half of total Premier League spending. Last year those clubs that found themselves in the bottom six on transfer deadline day had a gross transfer spend of £20m during that window, representing less than 20% of the Premier League total in January 2015.

Alexander Thorpe, senior manager in the Sports Business Group at Deloitte commented: “As the prospect of increased revenue from the new broadcast deals starting next season has encouraged clubs at the lower end of the Premier League to invest this window, so too have we seen significant spending by those clubs aspiring to Premier League status with spending by Championship clubs totalling over £30m this January.”

Some of the key findings from the analysis of the January 2016 transfer window by Deloitte, include:

 - Premier League clubs spent £175m to acquire new players in the January 2016 transfer window (2015: £130m; 2014: £130m; 2013: £120m; 2012: £60m; 2011: £225m). A summary of Premier League clubs’ player transfer fees spending for each of the previous January transfer windows (2003-16) is set out in the chart below.

- This January saw the highest ever total spend by Premier League clubs on players from overseas clubs of £110m, compared with £65m in January 2015. The amount of business between Premier League clubs fell compared with January 2015, accounting for 26% of gross spending (£45m) this window, compared with £55m in January 2015. The acquisition of new players from Football League clubs totalled (£20m, 11%).

- Premier League clubs concluded around £40m of player transfer fees on deadline day, slightly less than was seen on the January deadline day last year (2015: £45m).

- Newcastle United, Norwich City and Watford have been the biggest gross spenders in this window, accounting for around 40% of the total transfer spending by Premier League clubs.

- In aggregate, Premier League clubs have now spent over £1.4 billion to acquire new players in the 14 January transfer windows (2003-16). On average, the clubs’ transfer spending in January is equivalent to around one-fifth of total transfer spending in each year.

- Premier League clubs’ net transfer spend was around £100m (2015: £40m, 2014: £35m; 2013: £70m; 2012: £25m; 2011: £90m), being the net amount that flows to overseas clubs and Football League clubs. Player transfers out of the Premier League generated around £30m of receivables for the clubs.

- Championship clubs’ total gross transfer spending in January 2016 was around £35m, with those clubs currently in the top six league positions accounting for around 70% of this spending.

- Top division clubs in Italy were the second highest gross spenders this January, with total reported transfer spending of around 30% of the Premier League total. Total transfer spending by top division clubs in both France and Spain was around 15% of that by Premier League clubs. Meanwhile gross transfer spending by German clubs was around a fifth of that seen at Premier League clubs. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Posted by: Kev Howland 

 

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