Transfer Spending: That Escalated Quickly

Thanks to owners with deep pockets and ever-growing broadcasting revenues, the Premier League set yet another transfer spending record this winter. At a time when most non-English clubs were forced to take a more frugal approach in the wake of the Covid-19 crisis, the 20 Premier League clubs collectively spent €830 million ($900 million) in the winter transfer window, which is more than triple the combined spending of the Italian Serie A, Spain’s La Liga, the German Bundesliga and French Ligue 1. That brings the Premier League's total spending this season to almost €3.1 billion ($3.4 billion), shattering the previous spending record of €2.2 billion ($2.4 billion) set in the 2017/18 season.

With clubs owned by state-funded investment groups from Abu Dhabi (Manchester City) and Saudi Arabia (Newcastle United), American sports investment groups (e.g. Manchester United, Arsenal and Chelsea) and run-off-the-mill billionaires from around the world, the Premier League is playing at a different level from other leagues, financially. The Premier League’s latest broadcasting deals, reportedly worth $13.5 billion over the next three seasons, will further cement the league’s position in the European football landscape, with non-English clubs finding it increasingly hard to retain top talent.

As our latest Racing Bars video shows, the English top flight really solidified its position over the past decade, when spending took off and other leagues were no longer able to keep up. Having spent €5.75 billion on transfer fees between 2000 and 2009, the Premier League spent more than double that between 2010 and 2019 and went to on to spent more than €6 billion in the three seasons since, according to Transfermarkt.com. Looking at cumulative spending since 2000, the Premier League has outspent the Bundesliga and Ligue 1 more than 3 to 1, Spain’s La Liga more than 2 to 1 and Italy’s Serie A 1.6 to 1.

Considering these numbers, it’s surprising that English teams have not yet achieved dominance in European competitions, where Spanish clubs have won seven Champions League titles since the 2010/11 season to England’s three. The same is true in the Europa League, where La Liga clubs have triumphed seven times since 2010 compared to three titles won by English clubs.