Spending by English Premier League clubs fell by 715 million pounds ($912.27 million) in the January window compared with a year ago to the lowest level in three years, according to an analysis by Deloitte’s Sports Business Group.
Top-flight clubs in England collectively spent about 100 million pounds this January, a drop of around 88% from the same time last year, the analysis said.
Deloitte attributed the fall to clubs taking a more prudent approach after spending heavily in the close season and to concerns over potential sanctions for failing to comply with the league’s profit and sustainability rules (PSR).
PSR was introduced in 2013 to level the playing field and prevent clubs with rich ownership groups spending vast sums on players. It means clubs are permitted to lose a maximum of 105 million pounds over a three-year period.
Everton was deducted 10 points earlier this season for breaking PSR limits -- its appeal hearing began on Wednesday -- and was charged last month, along with Nottingham Forest, for another breach.
Serial champion Manchester City has also been charged with numerous breaches of finance rules since being bought by the Abu Dhabi-based City Football Group in 2008. No verdict has yet been reached in that case.
The 100 million pounds spent in the January window, which closed on Thursday, is the lowest since the league spent a combined 70 million pounds on transfers in the COVID-restricted window of January 2021, the report said.
Tottenham Hotspur made the biggest signing of the window, bringing in 21-year-old Romania defender Radu Dragusin from Italian side Genoa for 25 million pounds.
Despite the sharp dip, clubs still spent 2.5 billion pounds across the two transfer windows this season, making 2023-24 the second-highest season on record after last season.
“After record breaking spending in the last three transfer windows, Premier League clubs’ spending this January has been subdued,” said Tim Bridge, lead partner in Deloitte’s Sports Business Group.
“The more prudent approach is likely driven by the high level of spend invested during the summer window but may also have been influenced by a heightened awareness of the Premier League’s financial regulations and the potential repercussions of non-compliance.”
Spending in Europe’s other top leagues, however, rose 80% to 455 million euros ($495.54 million) from the 255 million euros last year, Deloitte said, with France’s Ligue 1 spending the most at 190 million euros.
The Women’s Super League saw transfer volumes fall 14% in January, but a busy summer window meant that transfer activity this season was still higher than in each of the three previous seasons, the report said.
“In future transfer windows, we expect to see sharper competition between top tier leagues and clubs as they seek to attract and retain top talent,” said Amy Clarke, women’s sport lead in Deloitte’s Sports Business Group.
“It will be interesting to see whether player trading will become a more significant contributor to clubs’ business models, as they look to further capitalise on the potential of the women’s transfer market.”
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