Clarets prudent in expected first billion pound window

Burnley are one of only four Premier League teams with a net transfer spend of less than 10% of revenue.

Friday, 12th August 2016, 5:07 pm
Updated Thursday, 25th August 2016, 5:16 pm
Burnley's most expensive summer signing to date, 2.5m Johann Berg Gudmundsson

Manchester City and Manchester United account for almost half of the total summer transfer spending in the Premier League this summer, as figures reveal that the two rivals have spent £322 million – and both have shelled out over 40% of their annual turnover - on players since May.

 The figures from spread-betting company reveal that Manchester City – who bolstered their squad this week with the addition of Everton’s John Stones – have spent 42% of their annual income in the last three months alone, whilst Manchester United’s world record fee for Paul Pogba pushed their summer spending up to the equivalent of 40% of turnover.

The figures also reveal that the ‘Big Six’ have spent £529 million on players this summer, around twice as much the rest of the league (£265 million) put together.

 The data, which looked at the summer spending of all 20 Premier League sides, found that only four clubs were in profit on their summer transfer dealings, with Southampton, Everton, Swansea and Hull in the black on transfers since May.

It has also emerged that only a further four teams – Burnley, Leicester, Sunderland and West Brom - have a net transfer spend of less than 10% of revenue over the summer break.

The study also found:

· Premier League clubs have spent a reported £794 million on transfers since the end of last season – or over £9 million a day

· The total net transfer spend of all 20 Premier League clubs since May is £463 million, an average of over £23 million per club

· Against the backdrop of annual revenues of £352 million last year, Man City still managed a net loss on summer transfers of £148 million, or 42% of annual income, with three weeks of trading still to go. On the other side of town, United managed a net transfer spend of £157 million, or 40% of annual income

· After the Manchester clubs and excluding recently promoted teams, West Ham have spent the next greatest share of their income on this summer’s transfer dealings at 24% of income

· Southampton have made the most profit from transfers this summer, with a healthy gain of just over £40 million, equating to 35% of their 2015 revenue

· The Saints, Everton and Swansea are the most prudently-run clubs of the summer, with both returning a transfer profit of over £27 million. The other side to find themselves in the black this transfer window are Hull

· All clubs are measured against the same criteria – with annual revenue being taken from the most recent available accounts – and so, as recent entrants to the league, it is unsurprising to see Bournemouth, Middlesbrough and Watford standing out as having statistically the highest net spend as a percentage of turnover.

Big Six spending since 2012

The study also looked at the summer net spend of the Big Six (Arsenal, Chelsea, Liverpool, City, United, Spurs) over the past five years, finding:

· At an average of 31% and 24% respectively, City and United have eaten the most into their income in summer spending since 2012. In fact, along with Liverpool, neither side has posted a profit on transfer dealings during any summer window in the period

· Arsenal, Chelsea and Spurs have each profited in at least one summer window since 2012, with Chelsea making the largest gain in a single window – a profit equal to 24% of revenue in 2013

· Largely powered by the reported £85 million fee for Gareth Bale from Real Madrid in 2013, this is first summer in five years that Spurs have spent over 10% of their annual turnover in net transfer spend

· In what will be a surprise to some who associate the club with free spending, Chelsea appear to be living well within their means. Overall, Chelsea’s net spend on transfers as a share of income has been just 4% since 2012

Connor Campbell, Financial Analyst at Spreadex said of the findings, “Despite there being a well-documented increase in revenue for clubs this summer through increased TV revenues, the continued high level of summer spending by the Manchester clubs will raise some eyebrows.

Amongst the teams outside the Big Six, there are many who are living within their means and not spending a high proportion of their revenues on summer transfers. However, fans of Crystal Palace, Stoke and West Ham may have some cause for concern, with those clubs having spent over the equivalent 10% of their annual revenue in the last 90 days alone.”