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Will Covid-19 Affect Football's Transfer Market?

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May 31, 2020

The European transfer market, led by the top 5 European leagues registered an aggregate of €4,2720M record spending in player acquisition during the 2019 summer transfer window. 

A growth that is estimated to be significantly affected by the COVID-19 health crisis, particularly considering KPMG's predicted loss of €4 billion if competitions were completely stopped. 

Fortunately, the German Bundesliga has already resumed play behind closde doors and LaLiga, the Premier League and the Serie A all plan to restart in mid-June. To mitigate the potential loss of revenue, particularly from broadcasting income, clubs and leagues are focusing on new innovative strategies to continue adding value to fans, sponsors and media. 

Last September, 2019, the latest Football Transfer Review was published by Prime Time Sport, a highly detailed report on how the top 5 European leagues have performed over time and how their teams have spent their transfer budgets. Griezmann’s transfer to FC Barcelona, Hazard’s to Real Madrid and Lucas Hernández’s to Bayern Munich have been the top players trading among top teams.

 

Real Madrid returned to the highest position of the spending ranking six years later, having spent a total of €305M, of which €100M was allocated to bring Eden Hazard to Santiago Bernabéu, after having worn Chelsea blue colours for seven seasons.
 
Led by FC Barcelona and Real Madrid, LaLiga hit a new all-time record on player transfers spending, reaching €1.3 billion and reduced the expenditure gap in comparison to the Premier League, registering a global €1.5 billion spending. The transfers of Rodri and Cancelo to Manchester City and Kovavic to Chelsea were essential to keep the English flagship competition at the top of the spending ranking.
 
On the other hand, the Italian Serie A also established a new record in investment last transfer market window, reaching a total expenditure of €1.2 billion, being the transfer of Danilo from Manchester City to Juventus the most expensive one, valued at €37M.
 
 
 
 
According to the report, Spanish clubs Real Madrid, FC Barcelona and Atlético de Madrid made it to the top of the podium of the clubs with the highest spending in 2019 summer window. FC Barcelona followed Real Madrid with a total of €255M and Atlético de Madrid finished the market with an investment of €243M. The signings of João Félix, Griezmann and Hazard led the Spanish teams to the top of the ranking.
 
Since 2010/11 season, the global player acquisition spending in the top 5 European leagues has increased by 257%, with an accumulated record expenditure of €4,720M registered in 2019/20. A prominent growth leaded by the Premier League and seeing how LaLiga and Serie A are reducing the gap. On their side, Bundesliga and Ligue 1 have not surpassed the €1 billion mark, registering spending of €742M and €670M respectively.
 
 
 
 
Will we see top clubs continue to spend massively on player signings over the next transfer window? Or will the market drop in value considerably?
 
Only time will tell how the transfer market will be affected post Covid-19. 

 
 
If you are interested in learning more about how the football transfer market operates, have a look at our newly launched online Certificate in Football Player Intermediation here. The first edition of this cours starts on June 15, 2020. 



This article was written by Xavi Bové of SBI's Marketing Team. For further information you can contact him at xavi.bove@sbibarcelona.com.

 
Information Source:

Prime Time Sport Transfer Review 2019-2020:

http://www.primetimesport.com/images/FTR/2019/Football_Transfer_Review_2019_20_by_Prime_Time_Sport_LaLiga_compressed-2.pdf


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