Player transfer spending by Premier League clubs was around £350m in the summer transfer window,
according to analysis by the business advisory firm Deloitte.

Dan Jones, Partner in the Sports Business
Group at Deloitte, commented: “Premier League clubs‟ spending in this transfer window has been
restrained at around £350m, after three years in which the clubs had spent £450-500m each summer. In
general, an absence of new owners and clubs striving to improve their financial balance has diminished the
vibrancy of the transfer market.” Reflecting on the level of net spending, being the net amount that flows
from Premier League clubs to non-English clubs and Football League clubs, Jones remarked: “Whilst the
headline figure for player transfer spending is 22% down, the level of net spending by Premier League
clubs of £190m is actually more than double that in summer 2009 and similar to the levels in each of 2008
and 2007. Last year‟s net transfer spending of £80m was lower in particular due to Premier League clubs
in receipt of £110m in transfer fees from Real Madrid alone.” The analysis by Deloitte also concluded that
Manchester City‟s transfer spending has been a key driver of the overall level of spending in summer 2010,
with the club‟s acquisitions of around £125m representing 36% of total spending as the club strives to build
a playing squad to match the owner‟s ambitions. Each of Chelsea, Manchester United and Liverpool has
reportedly spent more than £25m on player acquisitions in the summer transfer window. Whilst new
regulations have come into affect for home grown players, the values of player transfers between Premier
League clubs and player transfers from Football League clubs are much reduced compared to each of
2007 to 2009. Premier League clubs have spent around £70m on players from other Premier League
clubs. This intra-Premier League spending represents 20% of total transfer fees committed by Premier
League clubs, which is a lower proportion than in previous transfer windows (summer 2009:48%). Transfer
fees to overseas clubs were around £260m, around 66% up on the level in summer 2009. This represents
around three-quarters of total transfer fees committed by Premier League clubs (34% in summer 2009).
This level of spending significantly exceeded transfer fees received from overseas clubs. Compared to the
top leagues in other countries, the Premier League generates significantly more revenue and continues to
redistribute significant financial value to overseas clubs through the player transfer market. Gross transfer
spending by top division clubs in France, Germany, Italy and Spain is also down compared to 2009; down
by around 25-40% in each country. The top division clubs in Italy and Spain have reportedly spent around
£260m and £240m respectively in the summer 2010 transfer window. Football League clubs have
reportedly spent around £30m in summer 2010. Net of amounts received from Premier League and
overseas clubs, the Football League clubs benefit from a net inflow of around £25m this summer;
significantly down on recent years (summer 2009: £70m) and not a result that will help alleviate challenging
financial circumstances amongst the Football League clubs. Looking to the future, Paul Rawnsley, Director
in the Sports Business Group at Deloitte, said: “Despite improved economic conditions and enhanced
values from international media rights that kicked-in for the 2010/11 season, without further significant
capital injections from owners, transfer spending is unlikely to exceed the high watermark achieved in
2008. In general, for the time being at least, we are seeing a new financial reality as clubs strive to
improve their financial balance.”{jcomments on}

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