Spending in the January transfer window hit a record high in Jan 2011 when £225m was spent before dropping back to £60m last year. Now the figures are on the rise again after the 2012 total was doubled to £120m in the month just gone.
Deloitte have produced a report on the transfer window spending and they’ve found that three clubs between them contributed over 50% of this January’s activity; QPR, Liverpool and Newcastle United.
In January 2012, QPR and Newcastle United were also two of the three biggest spenders, with Papiss Cisse arriving at St.James’ Park. Which may pose the question, is January spending a deliberate ploy by Mike Ashley?
The report goes on to comment that the Premier League spending has been relatively restrained considering that as of next season broadcasting revenues are due to rise by between £20m and £30m per club.
While the Premier League spending was £120m in January it actually ended up being around £70m net once outgoing transfers such as Newcastle’s Demba Ba were taken into account.
The report also mentions that this reporting period will count towards the first assessment of UEFA’s financial fair play break even requirement which could help account for the relative spending restraint.
Newcastle’s spending decisions made a big contribution to the fact that £75m (62%) of transfer spending went on overseas purchases.
The actual spending on deadline day was £35m, with £30m on that day in 2012 and a whopping £135m in January 2011 on ‘Andy Carroll’ day.
How do we compare to other countries?
Italian clubs were the next biggest spenders paying out around 70% of what English clubs did, while Germany was around 45% and France 30%. While in Spain the spending was almost non-existent with the likes of the Russian and Brazilian leagues spending more.
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