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Newcastle and Premier League Cut Spending – Will It Last?

8 years ago
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When the season kicked off last weekend, transfer spending by Premier League clubs stood at £275m over the summer to date, which was £25m down on the same point last year.

Newcastle’s contribution so far this summer also following this path.

This would appear to be largely due to  the pressure of the impending introduction of Uefa’s financial fair play rules, rather than club revenues going down.  Deloitte are expecting overall Premier League revenues to grow by 1 or 2% to over £2.3bn this year.   It is also believed that the  £3bn threshold will be reached when the new TV deal money has kicked in.

According to Deloitte Sports Business, Premiership revenues have grown on average 15% annually for the past 20 years (a massive amount – would do wonders for your bank balance if your wages did the same!).

At the same time though wage bills have grown an average of 17% annually during that period. This explains German football clubs are showing higher profits than those of their English rivals, despite having lower levels of income which also isn’t rising at the same rate as their English counterparts either.

It will be interesting to see what happens in the mad dash of the final days of this transfer window and we’ll then have a look back to see if overall spending had continued to follow this pattern.

At this rate you could even get into the ridiculous position of most English clubs not losing money!

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