Premier League Clubs Expenditure Higher Than Expected
ccording to Deloitte analysis, despite the pandemic and the lowest gross spend since 2015, Premier League Clubs expenditure of £1.1billion (approx. AUD2.6 billion) in the summer transfer window is still higher than expected.
The figure saw an 11% decline compared to last northern hemisphere summer, which was down 9% on 2019; according to Deloitte’s Sports Business Group, this is the first consecutive decline in gross expenditure since the global financial crisis of 2008 and 2010.
Deloitte’s Sports Business Group, director, Tim Bridge, said many people “would have actually predicted the drop to be much larger”.
“Even with the pressures of a pandemic, there have been a number of high-profile deals, with some of the highest revenue generating Premier League clubs flexing their financial muscles to strengthen their competitive position both domestically and at a European level,” Mr Bridge said.
Deloitte Sports Business Group, partner, Dan Jones, added: “This has been a remarkable transfer window. Club spending records have been broken, player moves – including the two greatest players of their generation — have grabbed the headlines and Premier League clubs have spent in excess of £1 billion for the sixth summer in a row.
“Perhaps most remarkable is that all this has been achieved with lower spending than we have seen in the previous two summers,” he said.
The Deloitte analysis saw the financial impact football clubs experienced due to COVID-19 as not only did the spending decrease, but the proportion of players required on free transfers rose 2% from 2020 as the number of players signed by clubs increased from 132 in 2020 to 148 this year.
Only four Premier League clubs did not obtain a free player transfer this year compared to eight last year.
The Premier League remained the biggest money spending competition in Europe with a net player transfer spend of £560 million (AUD1.4 billion).
Series, A transfer expenditure of £50m (AUD93 million), LaLiga with £55m (AUD 1.9 billion) and Ligue 1 with £15m (AUD 28 million), Were the three leagues that also had a decline in gross spending.
Premier League club’s net player transfer expenditure for 2020/21 revenue was 10%, an 18% decline from last season’s figure.
This season, Chelsea, Manchester City, Arsenal, and Manchester United were the top four gross spending clubs and the four highest value individual transfers.
Ben white left Brighton for Arsenal for £50m (AUD93 million), Jadon Sancho transferred from Borussia Dortmund to Manchester United for £73m (AUD1.6 billion), Romelu Lukaku left Inter Milan for Chelsea for £97.5m (AUD179 billion and Jack Grealish joined Manchester City from Aston Villa in a £100m (AUD187 billion) deal.
“Whilst the volume of transfers has remained consistent, the number of free transfers has increased, as have the number of the highest value deals.
“This reflects twin forces of clubs prioritising financial stability and seeking value in the market while also being willing to pay for the very best talent,” Mr Jones added.