Economic reality hits football transfer market

TRANSFER spending by Premier League clubs fell from £170m last year to £30m, according to figures from North West sports business experts.

Deloitte’s Manchester-based sports business group said a lack of credit available to clubs and new money coming in to clubs had been a major factor.

There was an increasing trend for loan deals between clubs, which obviously cost less and represent a much lower risk. Around 70% of Premier League clubs’ player transactions (in and out) in January were loans.

Deloitte partner Dan Jones said: “The limited player transfer spending in January by Premier League clubs matches our expectations for this window.

“As managers, club owners and directors become increasingly sceptical of the near term impact a January acquisition can have, it is unsurprising to see a lack of high value activity, with those clubs that are active preferring loan deals.

“The absence of new club owners and the tightening of club finances and credit availability have helped to accelerate that trend and dampen down the market.”

Spendiing in January 2009 was inflated by a number of big-ticket signings by Manchester City, which had recently been bought by Abu Dhabi’s Sheikh Mansour, one of the world’s richest men.

Around 70% of Premier League clubs’ player transactions (in and out) in January 2010 were loan arrangements.