PREMIER LEAGUE TRANSFERS
PREMIER LEAGUE TRANSFER FEES MAKE UP LESS THAN A FIFTH OF ANTICIPATED CLUB REVENUES There might be a global pandemic going on and concern for the commercial future of sport around the world, but you’d be fair to assume that it’s all business as usual in the English Premier League – literally. No fans, no match day income and apparent financial uncertainty didn’t stop clubs spending over £1.2 billion during the summer window, each chasing their own individual dream ahead of a season that no one is sure will even finish as COVID-19 continues to wreak havoc on daily lives around the world. However, research shows that Premier League clubs spent less than a fifth of their expected cumulative 2020/21 revenue during the recent window. Clubs’ collective net-spend of £830 million was a “relatively sustainable” 17-18 per cent of revenue says Chris Winn, football finance expert and academic at UCFB’s Global Institute of Sport (GIS). 42 | OTFF ISSUE 13 ★ NOVEMBER 2020
However, the net-spend of clubs was around £200 million more than 2019’s summer window, despite the gross total being c.£170 million less this time around. Chris, who previously co-authored the Deloitte Annual Review of Football Finance, said: “Even allowing for no match-day revenue this season in a worst case scenario, potential broadcast rebates and the commercial hits due to lack of fan exposure, I’d still expect the Premier League to generate at least £4.5 billion-£5 billion total revenue this season as it stands.” Chris continued, “Whilst the significant gross spend by Premier League clubs affirmed the notion of this summer being a buyers’ market, it is also important to note that transfer fees are often paid in
instalments over time – so these levels of spend are not immediate cash payments here and now. Clubs will hope that future payments will be made in better times, and are often supplemented with future performance related terms to limit potential future liability.” Chris leads the on-campus and online MSc Football Business programme at GIS – the Master’s degrees and executive education arm of University Campus of Football Business (UCFB). UCFB delivers undergraduate degrees in the football and sports industry at its UK campuses in London and Manchester, which feature Wembley and Etihad stadiums at their heart In 2018/19 (the latest period for which financials are available), match-day
