Football clubs curb transfer spending says Deloitte
THE weakness of the pound against the euro and planned tax hikes for high wage earners conspired to hit Premier League football clubs’ transfer spending by 10% this summer.
Analysis of transfer window activity by accountant Deloitte’s Manchester-based Sports Business Group, reveals the total splashed out was £450m, down from last summer’s record of £500m.
Deloitte said that while transfer dealing among the top-flight clubs was largely unchanged, player acquisitions from overseas clubs slumped 40% on spending in 2008 and 2007, when the currency rate was more favourable.
Other factors included the global recession and the cost of borrowing money.
Bucking the trend of a more cautious approach was Manchester City, whose spending of around £120m represented 27% of the total market activity. City are bank-rolled by an Abu Dhabi-based billionaire, Sheikh Mansour, who has vowed to catapult the club to the highest echelons of football.
Paul Rawnsley, a director in the Sports Business Group at Deloitte, said: “As expected, despite the significant spending by Manchester City, Premier League clubs’ transfer spending declined in summer 2009.
“Economic conditions may improve in 2010 and the Premier League is expected to secure enhanced values for international media rights generating higher revenue for Premier League clubs.
“However, without further significant capital injections from owners, transfer spending is unlikely to exceed the record level achieved in 2008.”
No less than eight of the 20 Premier League clubs are based in the North West. Manchester City was the biggest spender and rivals Manchester United recouped a world record fee from the £80m sale of Cristiano Ronaldo to Real Madrid.
Despite falling since 2008 Premier League clubs’ transfer fee spending again topped that in other European leagues, albeit not by as much as in previous seasons. Spending by Real Madrid and Barcelona has boosted summer 2009 transfer spending by clubs in Spain’s top division to around £400m.
Italian Serie A clubs have spent around £350m and the clubs in the top division of each of France and Germany have spent around £200m.
