Big spending days of top flight are finished
SPENDING by top-flight clubs shrank by 10 per cent this year – and experts say a more “risk-averse” climate means Premier League outlays will fall again in 2010.
Teams in England’s top tier spent an estimated total of £450m before the summer transfer window closed yesterday evening, a reduction of around £50m on 2008’s record figure.
Mega-rich Manchester City, who bucked the trend with a £120m splurge on the likes of striker Carlos Tevez and defender Joleon Lescott, made up 27 per cent of total spending. But the majority of clubs adopted a more cautious approach and analysts from Deloitte, which compiled the figures, predict that trend will continue.
“It’s primarily been because of Manchester City that we’ve got so close to last year’s figure. They’ve pretty much done three years’ worth of spending in one year,” said Paul Rawnsley, a director of Deloitte’s Sports Business Group. “Short of another team doing the same next year, we would expect spending to be lower. We don’t expect peak levels again. The environment is now more risk-averse.”
The net spend of Premier League clubs more than halved from around £200m to £80m, meaning less money going on players from overseas clubs.
Analysts from Deloitte and KPMG, who also compiled data, said major factors were the pound’s decline in value against the Euro, and the deterrent effect of Britain’s high tax rates.
It also means clubs are buying more proven Premier League talent, rather than taking a gamble on foreign-based players who may not flourish in the English game.
Geoff Mesher, Head of the Forensic Sports Industry Team at KPMG, said: “Generally, clubs have been acting with greater financial care in the current economic environment.”