Join Now  | 
Home About Contact Us Privacy & Security Advertise
Soccer America Daily Soccer World Daily Special Edition Around The Net Soccer Business Insider College Soccer Reporter Youth Soccer Reporter Soccer on TV Soccer America Classifieds Game Report
Paul Gardner: SoccerTalk Soccer America Confidential Youth Soccer Insider World Cup Watch
RSS Feeds Archives Manage Subscriptions Subscribe
Order Current Issue Subscribe Manage My Subscription Renew My Subscription Gift Subscription
My Account Join Now
Tournament Calendar Camps & Academies Soccer Glossary Classifieds
Soccer's $2 billion summer industry
by Paul Kennedy, September 5th, 2007 7AM
Subscribe to Soccer America Daily

MOST READ
TAGS:  england

MOST COMMENTED

An increase in television revenues and the arrival of new owners have triggered record spending by English Premier League clubs on the transfer market.

English teams spent more than 530 million pounds ($1.1 billion) on players on the 2007 winter and summer markets, according to a report by Deloitte & Touche LLP. Spending by teams from Europe's big 5 leagues during the summer window that ended Aug. 31 totaled about $2 billion.

Five EPL clubs spent more than $70 million each on the summer transfer market:

-- Manchester United $102 million;
-- Liverpool $100 million;
-- Tottenham $80 million;
-- Manchester City $74 million;
-- Sunderland $70 million.

The biggest factor in the increase in transfer fees -- and salaries -- in England is the increase in fees television broadcasters will pay English clubs over three years -- a record $4.6 billion, an increase of 70 percent over the previous agreements. Each EPL club should receive about $100 million a year beginning in 2008-09.

Those kind of income figures have not been lost on foreign investors who have targeted EPL clubs big and small.

Both Manchester United (Glazer family) and Liverpool (Tom Hicks and George Gillette) have American owners. Manchester City was recently sold to former Thailand prime minister Thaksin Shinawatra.

A dozen EPL teams spent more than $40 million apiece, and eight set club transfer records.

-- Derby County: Robbie Earnshaw ($7 million)
-- Everton: Ayegbeni Yakubu ($22.5 million)
-- Liverpool: Fernando Torres $49.5 million
-- Portsmouth: Sulley Muntari ($14 million)
-- Reading: Emerse Fae ($5 million)
-- Sunderland: Craig Gordon ($18 million)
-- Tottenham: Darren Bent ($33 million)
-- West Ham: Craig Bellamy ($14 million)

Net EPL spending -- money spent on transfers minus money received for transfers -- increased $160 million to roughly $540 million in 2007.

Clubs from the Football League -- England's lower professional divisions -- were beneficiaries of the spending spree. Three former EPL clubs -- Charlton Athletic, Southampton and West Bromwich Albion -- each received more than $30 million in transfer fees in 2007; 14 Football League clubs received more than $4 million.

Outside England, the big summer spenders were Real Madrid, Barcelona and Atletico Madrid in Spain.

Real Madrid spent more than $160 million on new players in summer 2007, including the acquisition of Dutchman Arjen Robben from Chelsea for a reported $49 million -- the second-highest fee of the summer behind Liverpool's $49.5 million spent to acquire Spaniard Fernando Torres from Atletico Madrid.

Barcelona spent roughly $100 million, including $30 million on Arsenal star Thierry Henry, while Athletico Madrid also spent in the neighborhood of $100 million.

"Looking further afield," said Alan Switzer, director in the Sports Business Group at Deloitte, "it comes as no surprise to see Real Madrid and Barcelona spending at least as much as their English rivals on transfers, given that they have the highest revenues in world football in 2005-06."

Real Madrid and Barcelona negotiate their own TV deals that will earn them about $200 million a year beginning in 2008-09.

Outside England and Spain, Germany's Bayern Munich was the biggest spender with almost $100 million committed to overhaul its squad.



No comments yet.

Sign in to leave a comment. Don't have an account? Join Now




AUTHORS

ARCHIVES
FOLLOW SOCCERAMERICA

Recent Soccer America Daily
What They're Saying: Landon Donovan    
"I am surprised. What surprises me is we don't seem -- in the last five or ...
What They're Saying: Bruce Arena    
"It's kind of a next-man-up [situation]. It's not a like-for-like kind of substitution when you lose ...
What's new in USL for 2017    
Will the seventh USL season prove to be lucky? It will certainly be the largest in ...
Three keys to USA-Honduras    
Anything but a victory Friday night in San Jose would leave the USA with no more ...
Datebook: Hexagonal Matchday 3    
The USA-Honduras game will be the third game of the day in the Hexagonal on Friday. ...
Video Pick: How Lodeiro sparkled on his path to MLS    
Uruguayan playmaker Nicolas Lodeiro took MLS by storm when he arrived last year, leading the Seattle ...
MLS Week 4: Timbers aim to make it four in a row    
The Portland Timbers will look to improve to 4-0-0 when they play at Columbus Crew SC ...
Pulisic: 'I'm not going to put extra pressure on myself'    
The 18-year-old Christian Pulisic enters the USA-Honduras game on a roll, having scored Bundesliga, Champions League ...
U.S. Abroad: Lloyd hits winner in European debut    
Carli Lloyd's first goal for Manchester City, a header in the 30th minute, was the winner ...
USWNT: Rapinoe returns for Russia friendlies    
U.S. women's national team head coach Jill Ellis named a 24-player roster that will enter training ...
>> Soccer America Daily Archives