Newcastle and EPL To Profit As Transfer Spending Slashed
The downturn, in the most part likely caused by the global financial crisis and to an extent, the impact of UEFA’s Financial Fair Play regulations, has seen a fall of £190m in terms of payments between clubs in transfer and loan fees of bringing the total spent down to £375m million, a decrease of 34% on the same period last year.
In the first six months, clubs in Russia were the biggest spenders, where £42m went on transfers. In comparison, English clubs invested £36m but actually brought in £38m in the same period through sales. That £36m figure of course includes the near £10m fee Newcastle paid out for Papiss Cisse.
The FIFA review concludes;
“This could suggest that the effects of the global recession – for instance, distressed corporate sponsors, restrictive bank lending policies and reduced overdraft facilities for clubs – are being felt in the international football transfer market.
A further factor may be the high concentration of wealth in a relatively small number of associations; any reduction in spending in those few associations could have a disproportionately high impact on aggregate transfer fees worldwide.
Finally, given the share of the European transfer market, the efforts of those clubs to bring themselves in line with the UEFA Financial Fair Play Regulations before the onset of sanctions for indebted clubs may contribute to a fall-off in transfer compensation rates”.
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A total of 4,973 transfers were completed during the time being analysed. There were 708 deals involving Brazilian clubs and English clubs were the next busiest with 326 transfers.
Once the figures for the next six months (July-Dec 2012) are known, we will of course have a complete picture.
If the figures show a reduction in spending overall, then it looks as though English football could well be heading into sizeable future profits if they can reduce transfer spending while at the same time enjoy the much enhanced domestic and overseas TV deals.
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27th July Newcastle play Olympiakos in the first of their two matches in a three-sided tournament at the Algarve Stadium near Faro, kick-off 7.45pm (UK Time). (Live On ESPN)
28th July Same venue as the night before but this time United face Braga with kick-off once again 7.45pm (UK time). (Live On ESPN)
18th August Premier League kicks-off – Newcastle v Spurs 5.30pm (Live On ESPN)
25th August First away match – Chelsea v Newcastle 5.30pm (Live On ESPN)
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