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English clubs’ spending a windfall for Europe [Fri Sep 2nd, 2005]
A financial analysis has revealed that foreign football clubs are cashing in on demand from top English sides for some of the world's best players.
Of the £286 million (US$523 million) spent on players by English Premier League clubs in 2005, about half went to continental European sides, according to leading accountants Deloitte.
Among the top summer transfer spenders were Newcastle United, who bought England forward Michael Owen from Real Madrid on Wednesday for £17 million.
Overalll spending by English clubs currently far exceeds that by their European counterparts, said Deloitte.
Gross transfer spending during the summer 2005 transfer window by English Premiership clubs was twice that of clubs in Italy’s Serie A and Spain’s Primera Liga.
Top English sides also spent three times more than their counterparts in France and Germany.
The figures are influenced by cash-rich Chelsea, owned by Russian oil billionaire Roman Abramovich, who were the top summer transfer spenders. The EPL champions spent a reported £56 million on transfer fees.
Chelsea were followed by Newcastle United (£38 million), Liverpool (£19 million) and Tottenham Hotspur (£16 million).
Chelsea have spent more than £300 million on buying players since July 2003, when Abramovich took over at Stamford Bridge. Their spending accounts for about a third of all spending by Premiership clubs during the last two years.
The £286 million spent by EPL sides during the January and summer transfer windows in 2005 exceeded last year’s total of £260 million.
However, overall transfer spending was relatively restrained compared with the beginning of the decade. The EPL’s top clubs splashed out £320 million in both the 2000/01 and 2001/02 seasons.
European clubs accounted for £140 million of English clubs’ spending during 2005 - slightly lower than last year’s figure of £155 million.
Lower league English sides also benefited from spending by Premiership clubs, with more than £50 million going to the Football League.
"Many overseas clubs benefit from player transfer spending by English clubs," said Dan Jones, a partner in the Sports Business Group at Deloitte.
"The Premiership’s financial success and the clubs’ improved financial discipline means that, in general, more English clubs can invest in players," he said.
"Wage bills are also under better control in English clubs than their counterparts in other major leagues."
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