Broadcasting Rights Pivotal to Premier League Spending Increase

Next year’s broadcasting deal for Premier League sides may have been more pivotal to the increased spending in the January transfer window than Financial Fair Play (FFP), according to sports law experts.

Clubs in the Premier League spent over twice the amount in January 2013 as they did a year previously, with transfer fees reaching over £130m in 2013 compared to £60m in 2012.

Speaking exclusively to iSportconnect, Sports Lawyer Daniel Geey of Field Fisher Waterhouse argued that broadcasting rights may have had more to do with the increased expenditure then Financial Fair Play (FFP).

Geey said: “It’s very difficult to take FFP in isolation. As so, I think a bigger issue effectively is the new broadcasting deal for the Premier League that is kicking in next season, which will probably give each club between £20m and £30m extra per season.

“It’s been spent by some clubs that aren’t going to have to adhere to UEFA FFP. Bearing in mind the broadcasting deal is going to increase club revenues, then I don’t think it’s obscene to suggest that clubs are spending some of that money knowing they’re going to be in the Premier League or want to stay in the Premier League and reap those rewards.”

QPR, Liverpool and Newcastle United spent over half that amount as teams looked to improve their squads before the window shut at 11pm.

Geey argued that the big lay out spent by bottom side QPR is not surprising, because FFP will not be their concern. He added: “Let’s be honest I don’t think QPR will be thinking about getting into the Champions League for the next two seasons. They might think about getting into the Europa League in the next couple of seasons if they keep on spending enough money and doing it a little more wisely, but QPR aren’t thinking about that.

“FFP in affect hasn’t come into force in the Premier League in terms of domestic regulations so QPR won’t be that concerned with FFP in the short run. Their priority is survival.”

Dan Jones of Deloitte’s Sports Business Group said to Sky Sports News: “There were relatively few active spenders in the winter window, with over half of this January’s total transfer spending coming from three clubs.

“Winter window activity tends to be driven by the on-pitch competition at the upper and lower ends of the Premier League table.

“Clubs are now in a reporting period that will count towards the first assessment of UEFA’s financial fair play (FFP) break-even requirement for international competition and Premier League clubs are also considering the implementation of additional cost control regulation at a domestic level.

“Their apparent relative restraint in this transfer window may reflect an increasing focus on clubs achieving more sustainable levels of expenditure relative to revenues.”

{jcomments on}