EPL spending drops as clubs tighten belts
Premier League clubs' spending on new players dropped by 10 percent to £450 million during the
close-season transfer window which shut on Tuesday.
Even Manchester City's £120 million
spree failed to see the top flight match the record sum of £500
million spent a year ago.
Football finance experts believe the high rate of the euro and
50 percent tax rate for the very high-earners has contributed to
the drop, particularly in terms of players coming from the
continent.
Paul Rawnsley, director of Deloitte's Sports Business Group,
said the figures were no surprise - and net spending has dropped
from £200 million to £80 million
as clubs such as Manchester United, Arsenal and
Liverpool resisted spending all their earnings from transfer income
from Cristiano Ronaldo, Emmanuel Adebayor and Xabi Alonso.
Rawnsley said: "Despite the significant spending by Manchester
City, Premier League clubs' transfer spending has dropped.
"There are a number of contributory factors - the exchange rate,
the tax regime in Spain being more favourable to players and clubs,
and perhaps clubs thinking there is less of a risk in buying
established Premier League players than from overseas."
Rawnsley does not expect the picture to alter next year either
even if, as expected, the top flight benefits from a big rise in
the value of overseas TV rights.
He added: "Economic conditions may improve in 2010 and the
Premier League is expected to secure enhanced values for
international media rights generating higher revenue for Premier
League clubs.
"However, without further significant capital injections from
owners, transfer spending is unlikely to exceed the record level
achieved in 2008."
Deloitte's analysis shows Manchester City's spending has been
around £120 million representing 27
percent of the total spent, while Aston Villa, Liverpool,
Sunderland and Tottenham have each spent more than £25 million on new players.
Rawnsley said the necessity of the owners of Manchester United
and Liverpool to make big interest payments on loans taken out to
buy the club have also had an impact.
He said: "Having to pay interest can have a bearing on transfer
budgets but that is not necessarily why United have spent more of
the Ronaldo money.
"Some clubs may well have felt that thanks to the spending of
Real Madrid and others such as Manchester City the transfer market
has been too inflated."
