Premier League January Spending 2011-12

Pencils down, hand in your papers, the transfer window is now shut. How do this season’s transfers (2011-12) compare with previous years?

Let’s look at Gross Spending, Gross Revenues, and Net Spending for the Premier League from 1992-Present.*

Gross buying activity was down considerably to €82.1 from the 2010-11 season when €271.4m was spent bringing in players, a drop of 69%. €82.1m represents the lowest level of gross spending since the 2002-03 season.

Gross selling activity also dropped by €109.9m (-70%) from the 2010-11 season.

Overall, net spend in January for the Premier League was down significantly from the 2010-11 season, dropping by €79.5m (-68%). The last time spending was lower was in the 2002-03 season when the league spent a mere €16m in January.

The big question is what is driving the lower transfer spending? Are difficult financial markets still threatening owner wallets? Is this a normal ‘off’ year for spending in January? Or are the clubs actually lowering expenditure as the first year of Financial Fair Play monitoring is in effect? I suspect that FFP is actually affecting club spending decisions and reducing transfer values, we will have to look at the full year’s transfers to get the whole picture.

*2009-10 is treated as an outlier because of the extraordinary turmoil in the financial markets which disrupted normal transfer spending trends

All stats used come from the fantastic TransferMarkt.

Premier League January Spending 2011-12

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