Despite Messi and Ronaldo’s transfer to European football, transfer spending has fallen


Football update

The biggest clubs in European football have cut spending on players, even though the sport’s summer transfer window includes Lionel Messi with Cristiano Ronaldo.

The reduction in transfer fees reflects two years of financial losses caused by the coronavirus pandemic, making it difficult for the sport’s executives to profit from the multi-billion-euro player trading market.

The transfer window—the three-month period within which teams can sign players—closes on Tuesday night. According to data from the consulting firm Deloitte, the total expenditure of the “Big Five” European leagues during the window period of the United Kingdom, Germany, Spain, Italy and France is close to 3 billion euros.

This figure is lower than the 3.25 billion euros a year ago and the record 5.5 billion euros in 2019 before the pandemic Batting club income Due to the postponement or cancellation of performances, loss of ticket revenue and rebates from broadcasters. The European Club Association, which represents approximately 200 leading teams, estimates that the total revenue gap for clubs in continental Europe in the past two years has amounted to 3.6 billion euros.

Although expenses have fallen, there are still a lot of changes between clubs.This includes the increase in “free” transfers, such as Messi’s transfer from Barcelona to the Spanish club of Paris Saint-Germain can not afford The salary of its most precious gaming asset, as it seeks to reduce debt of more than 1 billion euros.

There are also a series of high-profile “rental” transactions, such as Saul Nigues’s transfer from Atletico Madrid to Chelsea on the transfer deadline, and Antoine Griezmann’s return to Atletico Madrid from Barcelona.

Loan trends Allow clubs to fire players at high wages. Player salaries, not transfer fees, are the biggest cost for most European clubs. Loan transactions usually include the option or obligation to acquire clubs to pay fees in order to make a permanent transfer at a later date, effectively deferring some costs to later seasons.

“There has been a disagreement,” said Dan Jones, head of Deloitte’s sports business group. “Top clubs are still spending huge sums of money for the best players, but on the other end of the market, there are a lot of free transfers and loan deals.”

For some teams, the reduction in transfer fees is exacerbating the financial crisis that is still plagued by clubs.

An executive from a leading Italian team said that smaller clubs rely on selling their best players for around 10-30 million euros to help balance their accounts each season. But as teams in Spain, Italy and Germany seek to reduce spending on players, the need for this level of acquisition has disappeared. “This is a crowded market,” the person said.

Billion pound bar chart showing Premier League football transfer spending

The 20 clubs in Europe’s most valuable domestic competition, the Premier League, spent a total of £1.1 billion, a 9% decrease compared to the same period last year, and this is the second consecutive summer window of cost declines.

The English club remains the most active club in Europe. This summer, the Premier League’s net transfer expenditure-player sales minus acquisitions-was 560 million pounds (655 million euros). This figure puts Spain’s net expenditure in La Liga at 65 million euros, Serie A’s net expenditure at 61 million euros, and Ligue 1’s net expenditure at 15 million euros. The German Bundesliga clubs have earned a net profit of 40 million euros from player sales.

The largest expenditures in the Premier League are concentrated in Arsenal, Manchester United, Manchester City and Chelsea. These are the clubs with the highest revenue generation in the league. However, in the entire league, this year’s net transfer expenses accounted for 10% of estimated revenue, compared with 18% last year. This is another sign that even the British elite clubs are forced to live within their means.

Players who are considered the best are still in demand. Ronaldo’s return to Manchester United from the Italian Juventus team cost as much as 23 million euros, but in terms of salary, he is still expected to become the highest paid player in the English club.

Weekly newsletter

Scoreboard This is the new must-read weekly newsletter on the sports business of the Financial Times, where you will find the best analysis of the financial issues of clubs, franchises, owners, investors, and media groups that affect the global industry. Register here.

Although the French striker’s contract is about to expire, Spain’s Real Madrid still signed Kelian Mbappé from Paris Saint-Germain with a transfer fee of up to 200 million euros, which means that he can sign for free next summer.

Those involved in these transfer discussions said that Real Madrid’s motivation for seeking Mbappe’s transfer stems from the fierce competition between the clubs.

The president of the Spanish club Florentino Perez is the chief designer of the club. UEFA Super LeagueEarlier this year, under the opposition of Qatar-owned PSG and other companies, a breakthrough match failed.

People close to Perez said that France is capable of resisting such a high Mbappé offer, which highlights that the wealthy in Greater Paris will not be restricted by the same budget considerations as others, especially in the so-called financial fair competition. The regulations are due to the pandemic.

Clubs such as Manchester City and Chelsea have expressed interest in acquiring Dortmund’s Norwegian striker Erlin Harland, who is represented by the “super agent” Mino Raiola.

According to a person familiar with the matter, after being informed that Haaland is considered one of the most promising players in European football, they will spend 500 million pounds in five years. This figure includes the players’ salaries, transfer fees and agency fees. , They flinched.

“This whole matter of lowering the transfer fee is completely distracting,” the person said. “Intermediary fees are still rising, and wages are too hateful.”


Source link