The summer transfer window for English clubs closed last night. The total amount outlaid by Premier League clubs during the said window exceeded £1.165 billion. This also culminated in a massive £155 million being shelled out by Premier League clubs on deadline day alone. The recent figures serve to emphasise the fact that the English Premier League remains the most lucrative in the world in financial terms.
The main reasoning for the dramatic increase in figures relates to Television monies paid to clubs. TV monies have increased astronomically over the last 10 years and are currently at an all time high in the Premier League. There is no sign of this upward trend changing. The highly lucrative TV deal which currently benefits Premier League clubs sees them benefit from a combined total of over £5 billion. The summer window saw 13 of the 20 Premier League clubs break their record transfer fee paid. Newly promoted Burnley broke their transfer record twice within the space of two weeks.
The gross average spend for a Premier League club during the window amounted to a massive £60 million. The Premier League spending dwarfed the next best league being Italy’s Serie A where a total of £590 million was spent. Last year’s total Premier League spending figure of £870 million was smashed. Manchester United spent a massive £89 million on Paul Pogba, eclipsing the previous world record transfer fee paid.
We are also witnessing clubs in the second tier of English football spending big in a gamble to get into the top flight of English football and benefit from the lucrative financial rewards it offers. The Championship was the 5th biggest spending league in Europe, higher than Ligue 1 in France. This year’s gross spend of £215 million in The Championship amounted to more than double the previous record. Recently relegated clubs such as Newcastle and Aston Villa spent a combined £110 million. Newcastle and Villa being two clubs benefitting from parachute payments which allow them to shell out hefty fees despite suffering relegation and a consequent drop in income. Such parachute payments have come in for heavy criticism from some quarters on the basis that they prevent a level playing field and make it difficult for other big Championship clubs such as Leeds United and Preston North End from competing financially with such newly relegated clubs.
Here at Farleys we have a specialist team of sports lawyers who deal with issues ranging from complex Premier League contracts to disputes relating to grass roots football. Do not hesitate to contact us today to speak with one of our specialist solicitors for expert advice on any sports related matter.
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