With so many football fans struggling to pay the ever-increasing bills, splurging on transfers can seem daunting.
Especially with record trading levels in the Premier League.
Deloitte calculates that net spending by clubs exceeded £1 billion for the first time in a transfer window before the game ended on the deadline day.
It’s a balancing act for the club.
Seemingly out of touch with the mood of the nation, or out of touch with the fan base asking for squad reinforcements?
Fan groups have called for a reduction in ticket costs, beyond the £30 limit on away prices, especially as energy costs are soaring amid a deepening cost of living crisis.
But as money is being funneled in from broadcasters and sponsors, the desire may be to see it spent pursuing silver titles, European degrees or most importantly, for many, avoiding relegation – all while providing huge tax contributions to the Exchequer.
It could be about appeasing fans in a frenetic football environment, where tracking volatile trading fortunes may seem as appealing to some as tracking the actual action on the pitch.
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Meeting those wishes is helped by Britain’s elite demonstrating its ability to withstand the financial impact of the pandemic, with stadium capacity restrictions ending more than a year ago.
Chris Wood, assistant director of Sports Business Group at Deloitte, told Sky News: “What we’ve seen is Premier League clubs, coming into the market this summer with real confidence.
“I guess excited by some of the circumstantial things at the clubs – such as new ownership, new managers in place trying to make their mark. But also fueled by an increase increased broadcasting rights.”
International broadcasters are driving growth with TV sales hitting £10 billion in a three-year license cycle that has just begun.
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Domestic deals have been done for £4.5bn as much as three years ago due to the financial uncertainties of the pandemic, with Sky – owner of Sky News – still showing the most games.
But lower-division teams are still particularly affected by rising costs, as they lack the lucrative rights deals that have maintained the Premier League as the richest league in world football.
Transfer spending has bolstered the financial strength of Britain’s top flight relative to its closest rival.
Net spending by clubs in Spain’s La Liga is around £55m, according to website Transfermarkt’s calculations of transfer fees to and from the summer.
Marc Cucurella has been linked with a number of clubs, but left Brighton for Chelsea – one of six new players bought by the club’s new owners in London.
Mr Wood said: “It’s definitely the Premier League’s league to flex their financial muscles.
Deloitte predicts the 20 Premier League clubs will break the £6billion revenue barrier for the first time this season.
Clubs on the continent know how to increase fees when dealing with English counterparts.
Especially when the owner should be determined to spend.
The beginnings of the post-Roman Abramovich era at Chelsea have seen new ownership use transfer spending to maintain the status quo and provide continuity with tycoon extravagance.
Nottingham Forest signed nearly 20 players upon their return to the Premier League, including Dean Henderson on loan from Manchester United
The consortium led by American business magnate Todd Boehly and funded by Clearlake Capital had net spend over the summer of more than £200 million.
Newcastle have started their first season under the ownership of Saudi Arabia’s sovereign wealth fund, kickstarting their bid to join the elite with a £120m+ spending on players, while also fighting back throwing cash at a megastar recruiter.
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Mr Wood said: “Obviously, the numbers that we see, whether it’s transfer fees, whether it’s player wages, are jarring in this moment with everyone’s pressure.”
But Deloitte hopes tribalism and fan loyalty will hold, with reluctance to give up match tickets. Perhaps that’s why they can exhort spending demands on players. Only four months left until the January transfer window opens.
