TV deal ‘fuels transfer spending’

Liverpool paid £20.5m for Fernando Torres this summer.

New owners and a massive television broadcasting deal have helped English football clubs spend more than £530m on players this summer, a survey says.The study, by Deloitte Sports Group, shows the spending was about two-thirds higher than the £330m of summer 2006.

Of the money spent by top-flight clubs, about £110m went to lower-league sides while some £265m went outside England.

The spree came as a three-season, £1.7bn, deal for domestic and overseas television rights began.

Several clubs – including Liverpool, Manchester City and West Ham – also benefited from ambitious new owners bolstering the transfer fund kitty.

“This summer’s transfer spending by English clubs has beaten all previous records,” said Paul Rawnsley of Deloitte.

“But as Premier League clubs will receive around £300m of extra broadcast payments during the 2007/08 season the increase in transfer spending is not a surprise.”

Mr Rawnsley said that player wages would also increase – though by a much lower proportion than the rise in transfer spending.

The average transfer fee paid by Premier League clubs rose from about £3.5m a year ago to £4m. The number of transfers also grew – from about 80 to more than 100.

Twelve top flight clubs spent more than £20m on players.