Forgot Password

 

Register

 

Create your Connect ID

This will allow you to login to all DStv websites & applications




or
Login using
x

Email Reset

 




Loading...
Loading Live Scoring...
*All times CAT (GMT+2)

Football | England

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."

Shop

Gerrard: My Autobiography
Steven Gerrard is a hero to millions, not only as the inspirational captain of Liverpool FC, but as a key member of the England team.
R152.00
Rafa: My Story
Revelatory memoir from the greatest sportsman in the world today.
R182.00
FIFA 14
Xbox 360
R549.00
Mitre Ultimatch Soccer Ball - White
A high quality football, offering high performance at both training and during football matches.
R252.00


Comments

More expert analysis and opinion from Sport24
The opinions expressed by Sport24 experts and bloggers are theirs alone, and do not necessarily represent those of SuperSport

Live Video Streaming

Barclays Premier League - Matchday 3: Tottenham Hotspur v Liverpool
Tue, 02 Sep @ 05:00
Tue, 02 Sep @ 11:15

Sports Talk



Carol Radull
Where are Kenya's strikers?
I was watching the English Premier League match between Everton and Chelsea on Saturday night and...

Calvin Emeka Onwuka
Spurs will challenge for the title
It was in my room in Rustenburg, during the last Afcon, that I noticed the style that Mauricio...

John Dykes
United in condemnation
The British football press showed tremendous solidarity this week when they all leaped on the same...

Neil Tovey
Borrowing from best practice
The late Irish scribe and poet Oscar Wilde once famously opined that “youth is wasted on the...

Sunday Oliseh
Man U need more than an 'Angel'
Just two games into the English Premier League and Manchester United are five points (synonymous to...

Arjun Vidyarthi
Good signs for the Reds despite loss
A brace from Stevan Jovetic and a Sergio Aguero stunner ensured that Manchester City took all three...