Fair play rules behind spending reduction

Football finance experts believe UEFA’s new financial fair play rules were behind the 70% fall in spending to £60 million (€72.1m) during the January transfer window.

Last year spending reached unparalleled levels, with a record £225m (€300.7m) spent by Premier League clubs according to business analysts Deloitte.

While Chelsea spent £50m (€60m) to acquire Liverpool’s Fernando Torres 12 months ago, the biggest single transaction this year was Papiss Demba Cisse’s move to Newcastle for a reported £9m (€10.8m) fee.

Experts believe the more subdued January spending this year was due to clubs showing financial prudence ahead of the new fair play regulations, which stipulate that clubs in European competition will only be allowed to spend what they earn.

“After last year’s bout of big-money transfers that drove the record total spend of £225m (€300.7m), January 2012 has seen a more sober level of spending amongst Premier League clubs,” said Dan Jones, a partner in Deloitte’s Sports Business Group.

“As clubs are now in the reporting period that will count towards the first assessment for UEFA’s financial fair play break-even requirement, their comparative restraint is indicative of an overriding reflection on spending levels.

“The focus on football’s future financial sustainability is more prevalent in Europe than at any time in the past 20 years.’’

Deloitte’s findings showed Premier League clubs concluded £30m (€36.1) worth of business on deadline day, much lower than the £135m (€162m) spent during the same period last year.