Why the Premier League shattered spending records
FT Desk
- 2 Sept 2022 08:40 BST
- 3 min read
Premier League clubs ended the summer transfer window by spending over £2 billion combined, breaking the all-time record, with Chelsea being the biggest spenders out of the 20 clubs.
The expenditure in the Premier League was more than that of Europe’s other top five leagues combined, showing that the financial strength in football lies in England.
While Chelsea led the way, newly-promoted Nottingham Forest weren’t shying away either, while Manchester United were keen to support new manager Erik ten Hag as well.
So, how did the Premier League get to this point of unprecedented spending and why were clubs willing to spend so much money?
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Many reasons behind spending
One of the reasons behind the league’s excessive spending is the arrival of new owners, such as Chelsea’s Todd Boehly, who took over the club earlier in the year.
It’s common that new owners want to go big in their first transfer windows, and Boehly has done just that, with the trend followed by Newcastle and Nottingham Forest.
Newcastle broke their transfer record with the signing of forward Alexander Isak, while Forest returned to the Premier League, making 22 signings to ensure their survival chances.
Total gross expenditure of the Premier League: £1.9bn
Total gross expenditure of the other four major leagues: £1.97bnhttps://t.co/rNKJyXs9Sn— Miguel Delaney (@MiguelDelaney) September 1, 2022
Clubs have also been making greater revenues than before, recovering well from the impacts that Covid had on English football and that has benefited them.
According to Deloitte, Premier League sides are set to cross £6 billion in revenue, surpassing amounts they made before the pandemic and showing the strength of the Premier League.
Additionally, clubs domestically and across Europe are in a stronger financial position, knowing they can demand high fees for players that are of interest.
Three clubs this year broke their transfer record: Newcastle, West Ham United and Wolves while 10 players were sold for over £40 million.
Finally, there has also been immense spending from those sides looking to break into or stay in the top four: Arsenal, Manchester United, Chelsea and Tottenham.
Qualification for the Champions League is lucrative, and getting there requires big money to be spent as well, as evident from this summer’s activity.
