Premier League Clubs Make Net Profit On Transfers
Wed 1st Feb 2017 | Money & Finance
For the first time ever in a transfer window, clubs in the Premier League recorded net transfer receipts of £40m, as £215m was spent in the January 2017 transfer window, according to analysis by Deloitte’s Sports Business Group.
This estimate brings total gross spending by Premier League clubs for the 2016/17 season to almost £1.4 billion, surpassing the previous record of £1 billion set last season by one-third.
Dan Jones, partner in the Sports Business Group at Deloitte, commented: “Spending by Premier League clubs in this January’s transfer window totalled £215m, surpassing last year’s total of £175m as the second-highest ever, behind January 2011.
“The sales of Oscar, Dmitri Payet, Odion Ighalo and Memphis Depay, as well as around £20m worth of sales to Championship clubs, have helped Premier League clubs record net receipts for the first time in a transfer window.
“As was the case last year, it is clubs in the bottom half of the table who have driven expenditure this January, investing in their squads in an attempt to secure survival. This is no surprise given clubs’ reliance on the revenues generated from the Premier League’s broadcast deals.”
The total expenditure of clubs currently in the bottom six of the Premier League was £110m, representing 50% of total spending. This follows a similar pattern to last January, when 56% of total January expenditure came from the league’s eventual bottom six, and contrasts with the summer 2016 transfer window, when almost 60% of expenditure came from the league’s current top six.
Jones continued: “Expenditure in January 2017 took the Premier League’s total transfer expenditure for the 2016/17 season to almost £1.4 billion – an increase of 32% on 2015/16 and far in excess of any other league in world football.
“The spending activity by clubs in the Chinese Super League (CSL) has grabbed many headlines in recent weeks. CSL clubs have spent over £150m so far during their current off-season, which began in November 2016.
“However, with the CFA having recently announced that tighter regulations around player transfer and salary expenditure are to be introduced, as well as imposing limits on the number of foreign players allowed, it will be interesting to see whether CSL clubs match this level of expenditure in future off-seasons.”
Posted by: Aaron Gourley
|RETURN TO LATEST NEWS SECTION|
|SUBSCRIBE TO THE FCBUSINESS RSS FEED|
|If you have any football business related news stories you’d like to share then please contact us – email@example.com|
To subscribe to our range of football newsletters including news, products and jobs CLICK HERE.
Wed 26th Apr 2017 | Money & Finance
The business model carried out by the owners of Watford FC is unlikely to be adopted by too many sectors outside of football, but by hiring and firing a conveyor belt of managers, they have managed to...
Wed 26th Apr 2017 | Money & Finance
Newcastle United and West Ham United have been targeted by HMRC for alleged Tax and National Insurance fraud. Officers are understood to have raided the offices at St James’s Park and the London...
Thu 20th Apr 2017 | Money & Finance
Premier League clubs’ revenues increased to a new record of £3.6bn in 2015/16, according to Deloitte, the business advisory firm. Analysis of the financial results of Premier League clubs...
Thu 13th Apr 2017 | Money & Finance
CEO, Lewis Holland and the team at DiscountIF team have been studying various merchandise stores of football clubs in the UK. This article was originally posted here. We’ve compiled a short list...