CIES Football Observatory Monthly Report n°37 - September 2018
Financial analysis of the transfer market in the big-5 leagues (2010-2018)
Drs Raffaele Poli, Loïc Ravenel and Roger Besson
1. Introduction
Since its creation in 2005, the CIES Football Observatory has been monitoring the transfer of players through information published by clubs and the media. This report analyses the paid transactions having taken place since 2010 involving teams from the five major European championships: the English Premier League, the Spanish Liga, the German Bundesliga, the Italian Serie A and the French Ligue 1. The first chapter studies from a historical per- spective the sums paid in transfer fees, while the second analyses the clubs and leagues having benefitted from these investments. The third chapter presents the financial balance sheets for both teams and leagues over the period stretching from 2010 to 2018. The figures published in this report include fixed transfer fees, eventual add-ons, as well as sums paid in the context of paying loans. The sums involved in the case of loans with an obligation to buy are included in the fig- ures for the year in which the agreement was concluded. Within the limits of the available information, the data on recipients take into account the resale percentages negotiated by former clubs.
1 Monthly Report 37 - Financial analysis of the transfer market in the big-5 leagues (2010-2018)
2. Sums invested Figure 1: transfer fee investments of big-5 league clubs, € million
For the first time since 2012, transfer fees paid ear s mmer nter total out by big-5 league clubs were less than for 2010 1 3 3 1 8 1 1 the previous year. In 2018, a drop of 2.4% was 2011 1 817 22 2 33 recorded in comparison to 2017: €5.82 billion instead of €5.96. The strong increase observed 2012 1 7 287 1 during the 2018 winter transfer window did not 2013 2 33 38 2 720 continue through to the summer one. However, 201 2 11 3 0 2 01
over the whole year, the amounts invested were 201 3 3 8 3 8 3 clearly above those paid out in 2016: +€1.59 bil- 201 3 731 230 lion (+37.6%). 2017 178 782 0
Throughout the period studied, the invest- 2018 713 1 107 820 ments of Premier League clubs represent- ed 37.4% of the total measured for the big-5 leagues. A slightly lower proportion was meas- ured in 2018 (36.5%). Since 2010, the English Figure 2: spread of transfer fee investments top division teams have spent 1.6 times more between big-5 leagues
than the Italian clubs, 2.1 times more than the 2010-2018 2018 Spanish, 2.8 times more than the German and 3.1 times more than the French. rem er ea e 37 3 Ser e 21 20
In 2018, a new spending record was established a a 1 7 22 7 in two leagues: the English Premier League n esl a 12 7 10 3 and the Spanish Liga. In the first case, the in- crease was rather limited (+2.1%). In the second, e 1 11 8 10 0 the increment in comparison to 2017 was very marked (+80.4%). Thanks to a better distribution of television rights and international success, Figure 3: transfer fee investments by league, € the Liga is now well-established as the second million force of world football. ear E ES I ER FR
2010 7 30 1 178 1
2011 8 3 31 3 21 207
2012 722 177 82 30 2
2013 22 7 78 311 3
201 1 2 8 7 3 0 23
201 1 0 2 8 370
201 1 773 07 8 1 71 283
2017 2 07 731 1 23 7 1 118
2018 2 122 1 31 1 1 7 00 83
2 Monthly Report 37 - Financial analysis of the transfer market in the big-5 leagues (2010-2018)
The rankings of clubs having invested the Figure 4: transfer fee investments by club, € most in transfer fees since 2010 highlights million (2010-2018) the incredible financial power of a handful of 1 Man hester C ty E 1 70 teams. The top three comprises Manchester City, Chelsea and Barcelona. Four other teams 2 Chelsea E 1 310 have spent over a billion € over the eight-year 3 FC ar elona ES 1 2 8 period analysed. Among the heavy hitters of S FR 1 2 2
European football, only Real Madrid (€912 mil- Man hester t E 1 102 lion) and Bayern Munich (€554 million) are sit- vent s I 1 08 uated below this threshold. 7 verpool E 1 071
As for 2018, Barcelona has pipped Liverpool 8 Real Ma r ES 12 and Juventus in the rankings of the clubs who Roma I 80 spent the most. Ten English teams are in the top twenty places. Borussia Dortmund and 10 tl t o Ma r ES 7 Monaco are the only representatives of the 11 Interna onale I 7 8 German and French championships. This re- 12 Mona o FR 70
sult is largely related to the financial gaps ex- 13 M lan I 78 isting between leagues of the big-5. 1 rsenal E 71
1 Everton E 7
1 ottenham E 8
17 apol I 7
18 alen a CF ES
1 ayern M n hen ER
20 ortm n ER 31
Figure 5: transfer fee investments by club, € million (2018)