The third Monthly Report of the CIES Football Observatory analyses the evolution of transfer fees paid by big-5 league clubs from the 2009/10 season up until the present. It shows that ever-increasing amounts of money are at stake. In parallel, a process of concentration of expenditure at the top of the pyramid is taking place. This reinforces the domination of the wealthiest clubs. A reform is proposed to improve the redistributive factor in the transfer system.
The evolution noted for the five major European leagues since 2009/10 reflects a strong increase in the sums invested in transfer fees. While the 98 big-5 league teams spent €6.9 billion to recruit players present in their squad in 2009/10 (€70.4 million per club), this figure increased to €8.6 billion in 2014/15 (€87.7 million per club). In six seasons, the average “cost” of a squad from a transfer expenditure perspective increased by 24.5%.
Between 2009 and 2014, the fees invested in signing squad members increased particularly in the English Premier League: €2.43 to €3.43 billion (€171 million per club). The amount spent by Premier League clubs in comparison with the total for the big-5 leagues went from 35% in 2009/10 to 40% in 2014/15. The explosion of revenues from the sale of TV-rights for the period 2016-2019 will undoubtedly reinforce this process.
The minimum threshold of investments in transfer fees above which it is reasonable to expect a podium finish has strongly increased. At big-5 level, the clubs having ranked in the top three places in the 2009/10 season spent on average €189 million in signing squad members. This figure has never been as high as in the current season: €278 million (+47%). Issue number 103 of the CIES Football Observatory Big-Weekly Post also presents the data by position.
The analysis of the recipients of sums invested by big-5 league clubs in signing squad members shows that the redistributive power of the transfer market is limited. Between 2009/10 and 2014/15, 67% of transfer fees were paid out to other teams participating in the five major European championships. A record figure was incidentally measured for the last two transfer windows: 70.5%.
With a view to equality and a wish to improve competitive balance, it would be therefore useful to consider what reforms are necessary to the transfer system so as to promote solidarity. An efficient measure would be to entitle each team in which a player has passed through to a compensation for each fee paying transfer taking place over the course of the player’s professional career on a pro rata basis to the number of official matches played at the club.
We kindly invite you to read the Report to know more about this proposal.