thumbnail Hello,

English Premier League clubs smashed their existing spending record in the summer transfer window, while Spain’s Primera División and Italy’s Serie A generated surpluses from player trading, according to analysis by Deloitte.

English Premier League clubs smashed their existing spending record in the summer transfer window, while Spain’s Primera División and Italy’s Serie A generated surpluses from player trading, according to analysis by Deloitte.

The financial service company detailed that gross spending by Premier League clubs in the summer of 2013 totalled £630 million, 29% up on the equivalent 2012 figure of £490 million and £130 million more than the previous record of £500 million set in 2008. Gross transfer fees to overseas clubs were around £490 million, 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. Premier League clubs’ net transfer spend, being the net amount that flows to overseas clubs (£370 million) and Football League clubs (£30 million), was also a new record, beating the previous record level of £250 million set in summer 2012. The rise in spending coincides with the riches provided by the Premier League’s hugely lucrative new set of UK broadcast rights deals, which came into effect this season. The League secured a huge 70% rise in the value of its domestic broadcast rights in June 2012, with BSkyB and BT splashing out a combined £3.018 billion in an agreement spanning the 2013-14 and 2015-16 seasons.

Alex Thorpe, consultant in the Sports Business Group at Deloitte, said: “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 £600 million 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 £400 million 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.”

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 the Primera Division and Serie A, each with a gross spend of £335 million, followed by France’s Ligue 1 with £315 million and the German Bundesliga with £230 million. However, Deloitte said that net transfer spending across Europe paints a more mixed picture, with the Primera Division (£95 million) and Serie A (£10 million) generating surpluses from player trading this summer, while Ligue 1 (£130 million) and the Bundesliga (£50 million) both spent more than they received.

From the web