Transfer spending is going strong

According to an analysis by Deloitte, transfer spending by Premier League clubs during last month's transfer window was over GBP 60 million, not quite as high as the record level of GBP 70 million in January 2006, but still ahead of spending levels in each of the previous transfer windows.

"Despite the lack of recent transfer activity by some of the Premiership's biggest clubs, player spending was still over GBP 60 million in the January transfer window," said Dan Jones, Partner in the Sports Business Group at Deloitte. "The prospect of enhanced broadcasting monies from next season has been a key driver for some clubs at both the lower end of the Premiership and amongst the Championship clubs."

The analysis reports that clubs have committed to over GBP 60 million in player transfer fees in January 2007, which was down from a record high in January 2006 of GBP 70 million, but up for levels of spending in each of the previous transfer windows, GBP 35 million in 2003, GBP 50 million in 2004, and GBP 50 million in 2005.

The biggest spenders in January 2007 were English clubs West Ham United and Aston Villa.

Compared to previous January transfer windows, the redistribution of monies to overseas clubs has been relatively low at about GBP 15 million, although for 2006-07 almost half of player transfer spending by Premier League clubs went to non-English clubs.

Consistent with prior years, Premier League clubs' transfer spending exceeded that in other European leagues. Total spending by Premier League clubs was double the amount spent by Spanish Primera Liga clubs, and more than the cumulative amount spent by all top division clubs in Italy, France and Germany.

The reported aggregate spending by Premier League clubs for the summer of 2006 and January 2007 transfer windows was approximately GBP 325 million and is higher than the GBP 300 million for 2005-06, which in turn was higher than in each of the previous years, GBP 265 million for both 2003-04 and 2004-05.

The Deloitte Football Money League, which will be published later this month, will confirm that several Premier League clubs are in the "Top 20" highest revenue generators in the world.

"Overall, the Premiership clubs have spent over GBP 300 million on player transfers in 2006-07," said Jones. "We can expect to see those levels at least maintained in summer 2007 driven by the additional TV monies and new investors at some clubs."

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.