Premier League spending drops to seven-year low
Reuters - Monday 01 February 2010, 21:17
MILAN - Premier League clubs' transfer
spending dropped to a seven-year low in the January window
compared to a record high last year, as financial woes weighed
on the market, according to business advisory firm Deloitte.
English clubs' spending was around 30 million pounds in the January transfer market, as much as for Italian
Serie A clubs, compared to 170 million pounds last year,
Deloitte said in a report after the deadline closed on Monday.
The 2010 estimate represents a new low for the top English
clubs since January 2003, when it was 35 million pounds.
"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," Dan Jones, partner in the
sports business group at Deloitte, said in a statement.
Although spending by Premier League clubs have still
significantly exceeded that for the top clubs in France, Germany
and Spain, Italian Serie A clubs have reportedly spent around 30
million on player transfers this year, the group said.
However, financial companies can only estimate figures as
many clubs choose not to disclose financial details.
Hence another report by KPMG consulting firm showed that
Premier League clubs spent a total of 41.5 million pounds last
month, little more than 20 percent of the estimated 190.5
million pounds spent in 2009.
Nearly one third of this amount is attributed to the fee
that Manchester United have agreed for Fulham's Chris Smalling,
who is expected to join them at the end of the season, KPMG
said.
LOAN DEALS
"The reason why it is the lowest amount spent in the modern
day transfer window is because all the banks have reduced the
clubs' overdrafts rather than extend them," financier Paul
Miller, the former Tottenham Hotspur defender who specialises in
football finances, told Reuters.
Loan deals accounted for 70 percent of Premier League's
transactions, Deloitte said. Manchester City forward Robinho
started his six-month loan spell at his former club Santos on
Monday, while Premier League strugglers West Ham United signed
South African striker Benni McCarthy on a permanent deal and
Egypt striker Mido and Brazil striker Ilan on loan.
Inter Milan loaned struggling winger Mancini to AC Milan and
signed Keyna midfielder McDonald Mariga from Parma on Monday,
after selling midfielder Patrick Vieira to Manchester City.
Half of Europe's leading clubs are losing money with more
than 20 percent facing huge losses, UEFA's general secretary
Gianni Infantino told Reuters in an interview last month.
However, Deloitte expected Premier League clubs to keep
their leading position amongst the "Top 20" highest revenue
generators in the world, thanks to their worldwide fan base and
new broadcasting right deals.