Five questions answered on the cost of the premier league transfer list

Football is big business

Football clubs are often criticised for their extravagant spending on the ‘beautiful game’, and as another Premier League transfer deadline passes it’s been revealed clubs spent twice as much on players this year than last. We answer five questions on the cost of this year’s Premier League transfer list.

How much money has been spent during the course of this year’s transfer window?

After closing at 11pm yesterday about a £120 million had been spent, with £35 million of that frantically spent transfer deadline day.

Net spend this year, which includes money recouped on player sales, was £70m.

How does this compare to previous years?

Well, it’s double what was spent last year, £60 million, but a drop in the ocean compared to what was spent in 2011, which was a record £225m.

Who were the biggest spenders this year?

The biggest spenders were Liverpool, QPR and Newcastle, the three combined contributing to 50% of the January total.

On average the biggest spenders are Chelsea who has spent £12.3m on average since the transfer window tradition started 10 years ago, QPR £11m, Man City £10.9m, Tottenham £9.1m, Liverpool £8.1m and West Ham £5.71m.

Chelsea holds the record for the most ever spent in a transfer window when it dished out £75 million in 2011.

Who were the most expensive players this year?

Mario Balotelli, who went from Manchester City to Milan for £17m, plus £5m add-ons, followed by Christopher Samba from Anzhi Makhachkala to QPR  for £12.5m.

What have the experts said about this year’s transfer spend?

Dan Jones, partner in the sports business group at Deloitte told the BBC:

Clubs have been relatively restrained in their player transfer-fee spending, in spite of the upcoming uplift in their broadcasting revenues.
Clubs are now in a reporting period that will count towards the first assessment of Uefa's financial fair play break-even requirement for international competition, and Premier League clubs are also considering the implementation of additional cost-control regulation at a domestic level.

Harry Redknapp was quoted earlier in the week saying about the transfer process:

There's not that many deals happening. If someone can muscle in on a deal… it's a bit like ice cream sellers when someone has nicked their pitch… in Glasgow! Someone's going to shoot them or something!

Adding:

This transfer window, I have never seen anything like it. Every agent seems to be trying to screw one another. It's like gang warfare out there – it's scary. If you're trying to get a player another agent will try to scupper that deal if he's not involved in it, to try to get you to have one of his. It's unreal, unbelievable. They're all fighting for big money – that's the problem.

 

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.