Premier League Clubs Set New Spending Record of £1.95 Billion in Summer Transfer Window with One Week Remaining Before Deadline Day
Premier League clubs have shattered records by collectively spending an unprecedented £1.95 billion on player acquisitions during this summer’s transfer window, and there is still a week left until the deadline day.
According to a comprehensive analysis conducted by Deloitte, this staggering expenditure has already surpassed the previous record of £1.92 billion established last summer.
Calum Ross from Deloitte commented, “This remarkable level of spending seems to have become the standard for Premier League clubs.”
The report predicts that the clubs are on the verge of surpassing the £2 billion threshold within the upcoming days.
Calum Ross, the Assistant Director of Deloitte’s Sports Business Group, further added, “For the second consecutive year, the summer transfer spending by Premier League clubs has exceeded the previous record and seems poised to cross the £2 billion mark for the first time before the window closes on 1 September.”
Last summer, there were no transfers in the Premier League that reached the £100 million milestone. However, this year, Chelsea broke that barrier by acquiring Brighton midfielder Moises Caicedo for a fee of £100 million, which could potentially escalate to a British club record of £115 million. Additionally, Arsenal secured England midfielder Declan Rice from West Ham for a sum of £100 million, plus an additional £5 million in add-ons.
Manchester City, the reigning champions, have made several acquisitions including £77 million defender Josko Gvardiol, £55.4 million winger Jeremy Doku, and midfielder Mateo Kovacic, who arrived for £25 million from Chelsea.
Manchester United, their rivals, introduced a new striker, Rasmus Hojlund, for £72 million. Meanwhile, Newcastle United, another Champions League participant, signed Italy midfielder Sandro Tonali for £55 million and Leicester forward Harvey Barnes for £38 million.
Even the newly promoted Burnley joined the spending spree, estimated to have invested around £95 million, including a club record £19 million deal for England Under-21 goalkeeper James Trafford.
Notably, Arsenal, last year’s Premier League runners-up, expanded their squad by purchasing Kai Havertz for £65 million and Ajax defender Jurrien Timber for £34 million, in addition to the Rice deal.
The extensive spending by Chelsea on players like Caicedo is just one facet of their overall outlay. Ross highlighted that factors such as “significant investment from new ownership” and “unprecedented revenue generation” contribute to this elevated spending trend among clubs.
Comparatively, spending has surged by £500 million compared to the same point in the previous summer’s transfer window. During the last week of the summer 2022 window, spending escalated by an additional £500 million, including £120 million on the deadline day.
Moreover, the analysis reveals that the average value of fee-based transfers to Premier League clubs is £25 million, surpassing last summer’s average of £20 million.
However, Ross cautions that clubs should still exercise prudence in their spending. While some clubs are enjoying substantial financial activity, others, like Wolves, have been advised by their owner to proceed cautiously to comply with the Premier League’s financial fair play rules.
Ross emphasized, “As we approach the end of the transfer window, it remains imperative that clubs manage the buying and selling of players carefully and remain compliant with relevant financial regulations. Sustainable business plans are essential to support continued competitiveness and long-term growth.”
The Saudi Effect
Despite the record-breaking spending, net spending has decreased by 25% compared to the previous summer, dropping from £1.1 billion to £825 million.
Deloitte attributes this decline to Premier League clubs receiving significant fees from players transferred from other international leagues, most notably the Pro League in Saudi Arabia.
The Saudi authorities’ initiative to enhance the competitiveness of the Pro League has attracted several prominent players with lucrative contracts.
In June, Saudi Arabia’s Public Investment Fund (PIF) announced the acquisition of four leading clubs in the country, increasing their financial capacity. These clubs, including Al-Nassr, made high-profile signings like Cristiano Ronaldo and Aymeric Laporte.
Al-Ahli, another PIF-owned team, secured French winger Allan Saint-Maximin from Newcastle and signed Manchester City forward Riyad Mahrez for £30 million.
Similarly, Al-Hilal acquired Aleksandar Mitrovic from Fulham and Ruben Neves from Wolves for substantial sums, while Al-Ittihad added Liverpool midfielder Fabinho for £40 million.
