JANUARY Data and analysis covering international transfers involving clubs from England, France, Germany, Italy and Spain.

Transcription

1 JANUARY 214 Data and analysis covering international transfers involving clubs from England, France, Germany, Italy and Spain.

2 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Foreword Welcome to January 214 Transfer Window Analysis, the first edition of the FIFA Transfer Matching System GmbH (FIFA TMS) seasonal review of the international transfer market. We are proud to present what we believe is a unique report. It provides data and analysis covering international transfers involving clubs from England, France, Germany, Italy and Spain - the five European countries that typically have the highest level of transfer spend. For the period from 1st June 213 to 31st January 214, these five markets accounted for 66% or USD 2.2 billion of the total global spend during the two transfer registration periods in the 213/14 season. In terms of the number of players transferred, the five markets accounted for 34% of the total market or 3,465 out of 1,6 global transfers. This analysis also covers transfers completed in January 214, an exciting and busy time for many clubs as they pursue their sporting and business targets. This is also a special period for many players in these five countries, given that it is just months before the FIFA World Cup 214; the trend of players moving clubs in order to gain more playing-time before the tournament is a noticeable one. The FIFA TMS vision is to foster and sustain a transparent global transfer market based on integrity, accountability and innovation. The full participation of all member associations and professional clubs in the FIFA Transfer Matching System greatly contributes to this vision. We would like to thank them for their continued support. We hope you enjoy this analysis and find it useful in your daily work. Table of contents 2 Foreword 3 Highlights 12 Mobility patterns 15 Transfer fees 18 Player characteristics 21 Domestic versus international 23 List of figures For more information: reports@fifatms.com Source: FIFA TMS All data and analysis cover the international transfer market for the period unless otherwise stated. All amounts in USD unless otherwise stated. 214 FIFA TMS. All rights reserved.

3 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Highlights Players changed clubs in search of a ticket for the FIFA World Cup in Brazil A key trend of the 214 winter transfer window was players changing clubs in search of more playing-time, in order to secure their spots in their national squads for the FIFA World Cup in Brazil. Typically, these were international footballers who had not played much for their club in the first half of the season. One prominent example was the Belgian midfielder Kevin De Bruyne, 1 who said he left Chelsea for Wolfsburg to return to the international stage after having participated in only three Premier League games during the first part of the season. The Spaniard Juan Mata, who moved from Chelsea to Manchester United for a reported USD 61 million 2 - the biggest transfer fee of the January window - also admitted that he was leaving partly in order to secure a spot in the Spanish squad for the World Cup. 3 He had started only 11 games out of a possible 22 with Chelsea before the transfer. The desire to play in the World Cup motivated numerous other transfers: among them, the Frenchman Djibril Cissé from Kuban Krasnodar to Bastia, 4 the Croatian Nikica Jelavic from Everton to Hull City, 5 the Frenchman Adil Rami from Valencia to AC Milan, 6 and the South Korean Ji Dong-Won from Sunderland to Augsburg. 7 Club executives of lower-profile clubs may benefit from targeting international players who are not playing regularly at their clubs and would like more game-time in order to regain international status. International transfers continue to grow in number in January Year on year, the absolute number of international transfers for the January period continued to increase (+36%, +699 transfers), a very high share of them being out of contract, on loan or for a very low transfer fee. However, after the increase of last year (+49% to USD 163 million), the transfer fees spent globally on international transfers in January returned to its average values, dropping sharply compared to January 213 window (-3%). Most clubs prefer to commit a greater transfer spend in the summer transfer window. Figure 1: Number of transfers and total transfer fees per transfer window worldwide (+12%) 331 (-4%) 1932 (+3%) 494 (+49%) 2631 (+36%) 346 (-3%) Number of tranfers (Percentage change on previous year) Total transfer fees in million USD (Percentage change on previous year) Jan 211 Jan 212 Jan 213 Jan Kevin de Bruyne: Wolfsburg sign Chelsea midfielder, BBC sport, Juan Mata: Chelsea accept Manchester United s 37m bid, BBC sport, Move to Manchester United revives Juan Mata s World Cup hopes, USA Today, Djibril Cissé très ambitieux, France Football, Jelavic s open letter to fans on Everton departure, Liverpool Echo, Rami eyes France World Cup spot with Milan spell, Four Four Two, South Korea striker Ji Dong-Won leaves Sunderland for Augsburg, Reuters,

4 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Highlights The big 5 continue to be powerhouses The numbers of the full 213/14 season for the big 5 confirm the trend towards higher number of transfers, but a different dynamic in terms of total transfer fees. The transfer fees for incoming players continue to grow at a faster pace than the fees for outgoing players, bringing the difference between the two to over USD 63 million, an increase of 5%. The increased net spending by the big five is primarily driven by the English, German and French clubs. England and Germany have benefited from more lucrative television deals, as we have footnoted elsewhere in the report. French spending comes chiefly from two clubs that have been taken over by wealthy foreign owners. Figure 2: Number of transfers for the big 5 The weakened spending by some countries outside the big 5 also has macroeconomic causes. South America spending fell by over 75% from European summer 212 to hit USD 9.8 million during European summer 213. One very likely explanation is the emerging markets crisis that has taken place since May 213. From the beginning of May to the end of August 213, the South American currencies depreciated almost continuously. Brazilian currency depreciated 2% vs the euro (19% vs the US dollar). The Uruguayan and Argentinean currencies depreciated respectively 19% and 1 % vs the euro over the period. They have fallen further since, affecting spending in the January window. As a consequence, players from UEFA countries became more expensive, which can have discouraged South American clubs. In January, a wider currency decline in emerging markets worldwide would have curtailed spending by many countries outside western Europe, far beyond the South America region - the Turkish lira in particular was hit, for instance. Season Number of incoming transfers Percentage change on previous season Number of outgoing transfers Percentage change on previous season Total number of transfers Percentage change on previous season 211/12 1,472-1,567-3,39-212/13 1,492 +1% 1,698 +8% 3,19 +5% 213/14 1,632 +7% 1,865 +1% 3,497 +9% Figure 3: Total transfer fees for the big 5 Season Total incoming transfer fees Percentage change on previous season Total outgoing transfer fees Percentage change on previous season Net transfer fees Percentage change on previous season Average incoming transfer fees Average outgoing transfer fees 211/12 1,521 million - 1,142 million million -.6 million.5 million 212/13 1,699 million +12% 1,278 million +12% -421 million +11%.8 million.5 million 213/14 2,236 million +32% 1,64 million +26% -632 million +5%.8 million.5 million All amounts are given in US dollars unless otherwise stated.

5 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Highlights The big 5 European markets (England, France, Germany, Italy and Spain) remained among the world s biggest net spenders on transfers. Furthermore, they did not seem to be losing major talent to other markets. Of the 1 biggest transfer fees paid in January, none concerns a player moving away from a non-big 5 country. Many middle-tier countries remain among the biggest releasing countries in terms of fees received. Club executives with modest budgets for acquiring players should focus on these middle-tier countries, where they are likely to discover talent that is less exposed in the global media and that therefore commands lower transfer fees in the big 5 markets. Figure 4: Top 5 transfer streams by number of transfers for the big 5 Releasing country Season 211/12 212/13 213/14 Engaging country Number of transfers Number of transfers Number of transfers Spain England Spain Italy Italy England Italy Spain France England Figure 5: Top 5 transfer streams by total transfer fees for the big 5 Releasing country Season 211/12 212/13 213/14 Engaging country Total transfer fees Total transfer fees Total transfer fees Spain England 136 million 66 million 212 million England Spain 63 million 82 million 156 million Italy England 26 million 1 million 143 million Italy France 12 million 14 million 131 million Spain Italy 9 million 73 million 93 million All amounts are given in US dollars unless otherwise stated.

6 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Highlights England Figure 6: Number of transfers and total transfer fees per season, England The number of players released by English clubs during the January transfer window increased dramatically by 95% from 77 to 15 (15 players released vs 112 players engaged). As a consequence, England became a large net releaser, which clearly differs from the previous years. However, the players released generally left for no transfer fees, or for lower fees than players engaged. This reflects England s continued role as the main engaging country of players by value in the international market. Net spending remained at a high level (USD 3 million) / / / When looking at the 213/14 season in its entirety, of the total USD 3.4 billion spent in the international transfer market, English clubs accounted for 26% of the global market spend (USD 885 million). English clubs spent 25% more on international transfer fees than in the 212/13 season. This increase has been fuelled partly by the Premier League s lucrative new television deals, worth about USD 8.75 billion for the period. 8 England is by far the biggest net spender in the international market, and the only country with several clubs still signing numerous footballers priced at the top end of the market [15 players costing over USD 2 million each in this period] Total number of transfers Total incoming transfer fees (in million USD) Total outgoing transfer fees (in million USD) Net transfer fees (in million USD) /12 212/13 213/14 Total number of transfers Number of incoming transfers Number of outgoing transfers 8 New Premier League TV deal promises 1 million prize money for next season s title winners, Daily Telegraph,

7 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Highlights France Figure 7: Number of transfers and total transfer fees per season, France It is noticeable that French clubs were less involved in the 214 transfer window as both the number of engaged and released players dropped compared with the average of previous years January transfer window. Net spending from international transfers fell significantly (USD 2 million in January 214 vs USD million in January 213). The two biggest-spending clubs in France seem to be winding down their high spending of recent transfer windows, having already boosted the quality of their squads. There was only one big international transfer from a French club during the transfer window: the defender Kurt Zouma from Saint-Etienne to Chelsea for around USD 2 million / / / Looking at the 213/14 season, French clubs spent USD 399 million, 12% of the global spend in the international transfer market. Most of this spend was accounted for by just two clubs even who have been trying to boost the quality of their squads, although the trend for these clubs is showing reduced spend in recent transfer windows. Total number of transfers Total incoming transfer fees (in million USD) Total outgoing transfer fees (in million USD) Net transfer fees (in million USD) While France has become a net spender in terms of transfer fees, the majority of French clubs have stuck to their long-term role as a releasing market of players. 343 outgoing and 226 incoming player transfers resulted in 117 net player releases from the French market /12 212/13 213/14 Total number of transfers Number of incoming transfers Number of outgoing transfers 9 Chelsea set to sign Kurt Zouma for 12.5m but loan him back to Saint-Etienne, Guardian,

8 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Highlights Germany Figure 8: Number of transfers and total transfer fees per season, Germany With net spending of USD 46 million, Germany was the biggest net spender among the big 5 countries, which is unusual. This may reflect the increased income of Bundesliga clubs. However, the number of players engaged by German clubs in January 214 dropped compared with 213 (63 players engaged vs 72 during the 213 transfer window) as clubs appear to be focusing more on quality. This highlights the rising power of German clubs in Europe and a more powerful position as net spenders in the international transfer market In season German clubs, spending on international transfer fees rose by USD 26 million to USD 252 million (+12%), representing 7% of the global market spend (USD 3.4 billion). Their receipts from international transfers increased slightly too: in the registration windows for the 213/14 season, German clubs received USD 2 million more for the release of players onto the international market than in 212/13. Consequently, German net spend jumped 27% to USD 112 million. The reasons for this are twofold: firstly, German clubs have improved their finances. The country s football league, the Bundesliga, in 212 signed a new deal raising its television revenues by more than 5%, to over USD 8 million a year. 1 That has reduced the need for German clubs to release players. Secondly, Italian and Spanish clubs have been hit by the economic crisis, resulting in a stronger economic position of German clubs vis-à-vis their Mediterranean rivals in particular / /13-88 Total number of transfers Total incoming transfer fees (in million USD) Total outgoing transfer fees (in million USD) Net transfer fees (in million USD) / /12 212/13 213/14 Total number of transfers Number of incoming transfers Number of outgoing transfers 1 The world from Berlin: Sky is playing a dangerous game, Spiegel Online,

9 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Highlights Italy Figure 9: Number of transfers and total transfer fees per season, Italy Italy remained a net releasing market during the 214 transfer window (52 players engaged vs 85 released) which confirms the trend observed in 213. Both total receipts and spending were very small. This is the first time in the last four years that Italian clubs did not engage any player for a large fee during the transfer window, probably because of their financial difficulties. However, continuing a trend of recent years, they engaged numerous young players from abroad, mainly from South America and Eastern Europe Adding the January results to those of summer 213, Italian clubs accounted for USD 363 million in spending, 11% of the global spend in the international transfer market and the third highest amount worldwide (after England and France). Italian relationships with other countries are fairly diversified, judging by the volumes of players being transferred to countries such as Slovenia (29 transfers), Malta (24 transfers) and Uruguay (16 transfers). 211/ /13 Total number of transfers Total incoming transfer fees (in million USD) Total outgoing transfer fees (in million USD) Net transfer fees (in million USD) 213/ /12 212/13 213/14 Total number of transfers Number of incoming transfers Number of outgoing transfers

10 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Highlights Spain Figure 1: Number of transfers and total transfer fees per season, Spain Total receipts of Spanish clubs in January were below USD 1 million: this is the first time that this has been the case for a big 5 country in the last four years. This low figure counterbalances the very high net receipts of Spanish clubs during summer 213. However, the number of players released by Spanish clubs during the transfer window was stable compared with previous seasons. An explanation for the drop in receipts may be that the Spanish clubs have already released many of the players with a high market value. Spanish clubs have looked for cheap ways to engage talented players: for instance, the young Portuguese Tiago Ilori joined Granada on loan from Liverpool where he had not played much during the first part of the season. 11 This move shows the scope for executives of mid-ranking clubs to engage young players of big clubs on loan. This is a situation that can benefit the player and both clubs / /13 Total number of transfers Total incoming transfer fees (in million USD) Total outgoing transfer fees (in million USD) /14 16 When looking at 213/14 in its entirety, Spanish clubs spent USD 337 million, 1% of the global market spend. However, Spain s sales of players were even larger USD 497 million. The country of the reigning European and world champion national teams has become the third largest net releasing market of players in the international transfer market, with 1,333 players leaving Spanish clubs to go abroad since January 1st, 211. The number of players leaving the country has increased in the last two seasons (321 in 211/12, 389 in 212/13 and 411 in 213/14). The comparative drop in the number of players recruited in the international market is probably related to the economic difficulties of many Spanish clubs. The combined debt for clubs in Spain has been reported as over USD 4 billion Net transfer fees (in million USD) /12 212/13 213/14 Total number of transfers Number of incoming transfers Number of outgoing transfers 11 El Granada logra la cesión de Tiago Ilori del Liverpool, AS, Una Liga ante el abismo, El País,

11 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Highlights Spain Figure 11: Number of transfers with total transfer fees incoming and outgoing in January 213 and January 214 January 213 January 214 Country Number of transfers Total transfer fees Number of transfers Total transfer fees Incoming Outgoing Incoming Outgoing NET Incoming Outgoing Incoming Outgoing NET England million 3 million -119 million million 67 million -3 million France million 72 million million million 27 million -2 million Spain million 58 million 25 million million million -19 million Germany million 13 million -25 million million 5 million -46 million Italy million 62 million 8 million million 4 million 1 million Percentage change on previous year: Less than -5% Between -5% and -25% All amounts are given in US dollars unless otherwise stated. Between -25% and % Between % and 25% Between 25% and 5% Greater than 5%

12 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Mobility patterns England finds perfect transfer partner in Spain The biggest transfer story of 213 in the media was Gareth Bale s move from Tottenham Hotspur to Real Madrid. However, his transfer from England to Spain went against the overall trend in the international transfer market. The bigger picture is that in the 213/14 registration windows, English clubs spent a total of USD 885 million, of which USD 212 million, 24%, went to Spanish clubs, which released 48 players to the English market. The reason for this growing Spain-to-England stream is twofold: the Premier League s lucrative new television deals were struck just as the European economic crisis was hitting Spain hard. For Spanish clubs, finding sponsors has become more difficult while attendances at matches have been falling: attendances at La Liga matches were down in 212/13, with only four clubs reaching 8% capacity for home fixtures. Thus, player transfers have become a necessity. Add to that the success of former La Liga players at differing levels in England from Alvaro Negredo at Manchester City 13 to the five players with Spanish experience at Championship side Brighton & Hove Albion 14 - and the eight Premier League coaches, including two Spaniards, who have either coached or played for a team in La Liga, 15 and this trend looks set to continue in 214. The relative status of the two national teams with Spain winning an unprecedented three major tournaments in a row while England s qualification for the FIFA 214 World Cup was secured in the last match of its qualifying campaign has also fostered the belief that Spain is an attractive market. Spanish clubs looking to release players should continue to target the English market, where even lower division clubs have the funds to engage players from clubs abroad. Figure 12: Transfers between England and Spain, 213/14 Releasing country Engaging country Total transfer fees Number of transfers England Spain 156 million 25 Spain England 212 million All amounts are given in US dollars unless otherwise stated. 13 Manchester City are the perfect goal machine, Daily Telegraph, These are: Bruno (signed from Valencia), Iñigo Calderon (Alavés), David Lopez (Athletic Bilbao), Andrea Orlandi (has played for Barcelona and Alavés) and Leonardo Ulloa (Almería) 15 These are: Manuel Pellegrini, Jose Mourinho, Roberto Martinez, Michael Laudrup, Pepe Mel, Mark Hughes, Mauricio Pochettino and Gus Poyet

13 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Mobility patterns Country Trends England England has been less active in engaging from Germany or engaging players with German nationality. Chelsea s signing of Andre Schurrle from Bayer Leverkusen was unusual for an English club. But it may be that the success of Premier League contenders Arsenal this season the club signed Germany international Mesut Özil to a squad already containing Germans Per Mertesacker, Lukas Podolski and Serge Gnabry 16 will encourage more clubs to recruit from Germany. 17 We already have a little German academy here and I learned that German discipline and talents are very appreciated here [in London], said Mertesacker. 18 France France has an unbalanced relationship with the traditional big European football markets. Over 5% of the players released from French clubs with transfer fees involved went to these big countries, but only 2% of the players signed by French clubs with transfer fees involved came from these countries. This is likely due to the relatively lower budgets of French clubs compared with the budgets of the clubs in the four other big markets. Germany In 213/14, German clubs engaged 42 players from England, Spain, France and Italy. These four markets have become major providers of players to German clubs, receiving a total value of USD 12 million in German spend on transfer fees. German clubs engaged 21 players from France while French clubs engaged 11 players from German clubs. Increasing numbers of players moved from Italy to Germany. The return from Italy of the Ghanaian-German Kevin-Prince Boateng, to Schalke 4, might indicate a trend here. 19 Italy Transfers involving clubs in England or Spain accounted for 19% of Italy s total international transfers with the big 5. Italian clubs engaged 2 players from English clubs but released 38 players to England (24 in 211/12 and 27 in 212/13). The number of players moving from Italy to Spain is also increasing (27 in 211/12, 28 in 212/13 and 38 in 213/14). Spain England (48 transfers) and Italy (4 transfers) are prominent transfer partners when it comes to the releasing of players by Spanish clubs. But the desire to sign players from Spain is not just a European trend - the market is becoming a source of talent for the rest of the world. The decision by players to leave Spain for less successful football regions has been called The exodus of the middle class by El Mundo newspaper. 2 No longer is it just Europe s principal markets that can aspire to have Spanish players in their teams - now almost everybody does. 16 Arsenal midfielder Serge Gnabry can win World Cup place with Germany says manager Arsène Wenger, Daily Telegraph 17 Like Eric Cantona, Arsenal s Mesut Özil can be a catalyst for success, London Evening Standard, Deutsches Talent wird hier geschätzt, Spox.com, Boateng back in Bundesliga, signs with alke, Fifa.com, El éxodo de la clase media, El Mundo,

14 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Mobility patterns Country Trends Figure 13: Number of transfers between the big 5 per season Legend: Number of transfers 213/14 (Percentage change on previous season) Number of transfers 212/13 (Percentage change on previous season) Number of transfers 211/12 14 (-36%) 22 (1%) 2 16 (-6%) 17 (-29%) (41%) 27 (13%) 24 England 2 (5%) 19 (138%) 8 Germany 48 (23%) 39 (-2%) (-19%) 14 (-26%) 19 (-14%) (19%) (-35%) 4 (29%) 31 France 11 (%) 11 (%) (-26%) 19 (%) (-9%) 23 (35%) 17 7 (25%) 2 (-85%) 13 1 (25%) 8 (-11%) 9 11 (-39%) 18 (1%) 9 Spain 14 (%) 14 (17%) (%) 12 (%) (6%) 1 (-58%) 24 Italy Germany 1 (%) 1 (%) 1 38 (36%) 28 (4%) 27 4 (5%) 38 (23%) 31

15 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Transfer fees New owners boost French spending Figure 14: Total transfer fees for the top five transfers incoming and outgoing, France France s role within the global transfer market has become more significant over the last two years in terms of spending power. France s international transfer spend has increased by 53% compared with 212/13, from USD 261 million to USD 399 million. This rise in French spending can be almost entirely attributed to clubs with foreign owners, who have injected large sums of money into the global transfer market. The French market s five largest international signings in 213/14, accounting for 73% of total spend, were made by only two clubs. By contrast, the remaining French clubs spent considerably less. Their more limited resources force them to recruit players with much lower transfer fees. One of France s big-spending clubs, AS Monaco, began 213 in Ligue 2 but then won promotion and spent a reported USD 19 million on four high-profile players. 21 In the current reality, it s near impossible to challenge the status quo without significant transfer spending early on in a new project, said Monaco s former sporting director and chief executive, Tor-Kristian Karlsen. 22 In an ideal world, everyone would build organically, setting up structures and enjoying the gradual benefit of a solid club management on a year by year basis, but regrettably the times in which you could slowly grow organically into a side that dominates the Champions League are long gone. because the genuine powerhouses of European football are so strong and generate such high revenues that without the initial investment you have no chance of catching up /12 212/13 Total transfer fees incoming (in million USD) Total transfer fees outgoing (in million USD) /14 21 Les 25 plus gros transferts de l été en Ligue 1, montants hors bonus, Maxifoot Magazine, In an exclusive interview with FIFA TMS, 22. October 213

16 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Transfer fees Country Trends England Of the USD 885 million spent by English clubs, only USD 32 million went to non-european clubs which shows just how essential English clubs have become to the European transfer market. English funds are helping to support releasing clubs across the continent. England is less significant to the global market as a whole, because English clubs sign players mainly from clubs in Spain, France and Italy. Smaller clubs from these countries, reliant on transfers to fund their operation, may be able to find a competitive advantage over their peers by strengthening their ties with English clubs. France The five largest international transfers for French clubs cover over 73% of the total French market spend. This proportion is considerably higher than in the other four big European football markets. On the releasing side of the market, however, the five largest releases by French clubs covered less than 51% of total French receipts from international transfers. Italy Italian clubs have been the biggest beneficiaries of the rise in spending among French clubs. Italian net receipts of USD 12 million in 213/14 from transfers with French clubs contributed to Italy s overall net receipts for 213/14 of USD 13 million. However, the flood of players from Italy to France dry up in 214, given that Leonardo, an expert on the Italian market, has resigned as Paris Saint-Germain s (PSG) sporting director, and PSG will probably sign fewer players in future. 23 Spain The gap in spending between the two big clubs in Spain and the rest of the market is huge probably because of the Spanish football regulation that allows individual clubs to negotiate their own lucrative TV rights packages. Javier Tebas, president of the Spanish football league, is backing a new Ley de Deporte, a law that would encourage clubs to sell their broadcast rights collectively. If that happens, smaller Spanish clubs may also be able to re-enter the international transfer market. Germany Germany has the largest number of clubs (134) recruiting players in the international transfer market, possibly because total club revenues are higher in Germany, and television rights income is spread more evenly between the clubs there than in, for example, Spain (where only 62 clubs engaged players internationally). Consequently, German clubs further down the pecking-order can afford to engage in international transfers. 23 In an interview with The Global Player magazine, Leonardo explained that he signed players from Italy for PSG because: I lived in Italy for 14 years and have relationships that helped me. He also claimed it was part of the club s strategy: You can spend a little amount year on year over 15 years, or invest a lot in the first three and then do less.

17 54 (-) BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Transfer fees Country Trends Figure 15: Total transfer fees between the big 5 per season Legend: Total transfer fees 213/14 in millions (Percentage change on previous season) Total transfer fees 212/13 in millions (Percentage change on previous season) Total transfer fees 211/12 in millions 41 (-48%) 79 (155%) (57%) 23 (-44%) (43%) 1 (285%) 26 England 38 (-3%) Germany 212 (221%) 66 (-51%) (9%) 33 (-) (-1%) (3%) (-51%) 179 (397%) 36 France 4 (-) (-1%) (-6%) 31 (933%) 14 (37%) 12 3 (2%) 1 45 (44%) 1 (-97%) (-5%) 22 (57%) (-11%) 36 (-) Spain 32 (1%) 16 (-62%) (2433%) 3 (-63%) 8 11 (22%) 9 (-59%) 22 Italy Germany 1 (9%) 1 (-93%) (667%) 3 (-96%) (27%) 73 (-19%) 9

18 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Player characteristics Italian clubs buy young players Italian clubs now have a pronounced tendency to engage players young. 26% (8 players) of the 33 players signed internationally were aged under 21. Globally, the under-21 age group accounts for just 13% of countries international transfers. Perhaps Italy is keen to engage young because of its longstanding access to the talent grounds of Brazil, Argentina and Uruguay. It is also probable that Italy now engages young players because so many of its clubs are struggling financially, and the under-21s are typically less expensive than players in their prime. Italian clubs spent average transfer fees of USD.8 million for players aged under 21. And yet in the top Italian league, Serie A, in season 212/13, the average age of players fielded in Italy was the highest of Europe s largest five countries, at 27.4 years. 24 The percentage of minutes played by footballers under 22 years old in Serie A was 12%, less than in France (14%) and Germany (16%) though more than Spain (9%) and England (8%). 25 There are two possible reasons for this, according to Italian paper La Repubblica: Italian clubs would rather invest on foreign talent and often, younger players are used as scapegoats by fans and the media if results are disappointing. 26 Andrea Agnelli, president of the Italian league s current champion Juventus, admitted that Serie A has become a second-tier, no longer able to sign the best players, but instead, a place where young players go to launch their careers. Rather than a final destination for top players, we are now a transit league, he said. 27 Executives from clubs outside Italy may start to look at Italian clubs as potential recruiters of young players. But for the players or their intermediaries, a contract offer from an Italian club might not always come with a guarantee of regular playing time. Figure 16: Number of transfers and average transfer fees per player age incoming and outgoing, Italy Player age.5 Average total transfer fees incoming (in million USD).2 Average total transfer fees outgoing (in million USD) 4 1 Number of incoming transfers Number of outgoing transfers 24 CIES Football Observatory Annual Review CIES Football Observatory Annual Review Sballottati da una panchina all altra non giocano ma fanno mercato, La Repubblica, My Juventus, Financial Times,

19 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Player characteristics Country Trends Figure 17: Number of transfers and average transfer fees per player by age range incoming and outgoing, England England England stands out for its transfers involving players under 21 as it engaged far more players in this age category (162 players) than it released (119 players). 33% of the players engaged by English clubs were under 21, a far higher proportion than in the other big countries. The average fee for these players was particularly low (USD.4 million per transfer). On the other hand, when English clubs engaged players between 25 and 28, they spent high fees for them (USD 4.8 million, on average). Apart from players aged over 28, English clubs paid higher average fees for players than they received < Player age ranges > France It is striking that France released far more players aged between 21 and 24 (136 players) than it engaged (66 players): the French football academies are well developed and recognised in Europe but French clubs cannot keep the players they have trained once they become professional. The financial power of just two clubs raised the average fee for players engaged by French clubs. The reality is different for the other clubs. Germany For each of the age categories, the difference between the number of players engaged and the number of players released is low. The bulk of the transfers involving German clubs concerns players aged between 21 and 24 (41% of the players engaged and 46% of the players released). The average fee for the players engaged was far higher than for the players released in this group: USD 1.4 million as opposed to USD.5 million. This suggests that German clubs are willing to invest in young players who have begun to prove themselves in professional football but are not yet established and therefore expensive stars. Figure 18: Number of transfers and average transfer fees per player by age range incoming and outgoing, France < Player age ranges Figure 19: Number of transfers and average transfer fees per player by age range incoming and outgoing, Germany > Average total transfer fees incoming (in million USD) Number of incoming transfers Average total transfer fees outgoing (in million USD) Number of outgoing transfers < >28 Player age ranges

20 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Player characteristics Country Trends Figure 2: Number of transfers and average transfer fees per player by age range incoming and outgoing, Italy Italy As far as Italian clubs are concerned, there is a clear distinction between very young players, those under 21, and the others. Italian clubs engaged far more players aged under 21 (8 players) than it released (54 players). For the other age categories, Italian clubs are significant net releasers. Only 11% of the players engaged by Italian clubs are aged over 28, far less than for the other big countries Spain Spain differs from the other big countries as it has been a clear net exporter of players for each age category. It released far more players aged over 24 (254 players) than it engaged (131 players). The average fee for young players (aged 24 or below) engaged by Spanish clubs is far higher than for the young players it released. This situation is exactly the opposite for players aged over 24: for instance, the average fee for the players aged between 25 and 28 released by Spanish clubs was USD 2.6 million, compared with USD.7 million for players engaged from this age category. Spain sold players with value, probably because of financial difficulties. 69% of the players released were aged over 24, a far higher proportion than in the other big countries. <21 Player age ranges Figure 21: Number of transfers and average transfer fees per player by age range incoming and outgoing, Spain > < >28 Player age ranges Average total transfer fees incoming (in million USD) Number of incoming transfers.2 1 Average total transfer fees outgoing (in million USD) Number of outgoing transfers

21 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Domestic versus international Germany spending more at home Germany was the only one of the big five European countries where the largest transfer of the year involved a player from the country itself: Mario Goetze, the German international midfielder, moving from Borussia Dortmund to Bayern Munich. 28 In January, the same clubs agreed a deal for another star to move in the same direction: Robert Lewandowski, though he was engaged out of contract and will move in June. 29 It is also noticeable that German clubs remained moderate in the transfer fees they pay. In contrast to France, England, Spain and Italy, no German club spent more than USD 5 million on a single transfer. This is partly because German clubs do not have wealthy foreign owners, and because their licensing system forces clubs to balance their budgets. German clubs did recruit a rising number of players in the international market again a reflection of Germany s improving competitive position versus the other big European football markets. Figure 22: Number of incoming transfers with total transfer fees greater than USD 5 million, Germany compared with England, Spain, Italy and France We would expect Germany to sign more leading players as Bundesliga revenues rise and the German economy remains strong relative to other European economies. The strength of the economy is particularly relevant to German football as German clubs rely heavily on sponsorship from large companies /12 212/ /14 Germany Average for England, Spain, Italy and France 28 Dortmund s Goetze heading to rivals Bayern, Reuters, Lewandowski to join Bayern from arch-rivals Dortmund, Reuters,

22 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY Domestic versus international Country trends England A peculiarity of the English market is that English clubs maintain close ties with clubs from Scotland, Wales, the Republic of Ireland and Northern Ireland. These transfer relationships within the British Isles work in both directions. Transfers with counterparties in Scotland and Wales accounted for the four most active transfer streams involving English clubs, with totals of 616 and 442 players transferred respectively since 211. Overall, 155 players with origins in England, Scotland, Wales or Northern Ireland moved into England this season. This is more than the total of the next 4 nationalities put together (France, Ireland, Spain and Italy), and amounts to 32% of total incoming player movements. However, the purchases of British players were for relatively low fees: a total of USD 24 million, the 12th highest for all incoming nationalities. France French clubs released considerably more players into the international transfer market than they transferred to other French clubs. The French market also seemed to specialise in releasing defenders internationally: that position accounted for 32% of the players released abroad by French clubs, compared with the 25% average across Europe s other big four countries, England, Germany, Spain and Italy. Germany German clubs rely on both the international and domestic markets as equal sources for player recruiting though they engaged slightly more players from the international market than they released internationally. Italy In 213, 7 of the 1,252 transfers involving at least one Italian club were domestic. The ratio of domestic transfers (56%) to international is the highest of the big five European football countries. One reason may be that Italy has four professional tiers: the smallest Italian clubs rely heavily on the domestic market because they lack the financial resources to send scouts abroad and to spend much on transfer fees. Spain Spanish clubs released considerably more players into the international transfer market than they engaged from it a reflection of the predominant flow now occurring out of the Spanish market. The nationality breakdown of players released from Spanish clubs with transfer fees involved was also significant. 48% of players released from Spanish clubs were Spanish nationals. By comparison, the global market average is that only 43% of players released internationally have homecountry nationality. The high Spanish figure highlights the attractiveness of Spanish players to foreign clubs.

23 BIG 5: TRANSFER WINDOW ANALYSIS JANUARY List of figures Highlights Figure 1: Number of transfers and total transfer fees per transfer window worldwide Figure 2: Number of transfers for the big 5 Figure 3: Total transfer fees for the big 5 Figure 4: Top 5 transfer streams by number of transfers for the big 5 Figure 5: Top 5 transfer streams by total transfer fees for the big 5 Figure 6: Number of transfers and total transfer fees per season, England Figure 7: Number of transfers and total transfer fees per season, France Figure 8: Number of transfers and total transfer fees per season, Germany Figure 9: Number of transfers and total transfer fees per season, Italy Figure 1: Number of transfers and total transfer fees per season, Spain Figure 11: Number of transfers with total transfer fees incoming and outgoing in January 213 and January 214 Mobility patterns Figure 12: Transfers between England and Spain, 213/14 Figure 13: Number of transfers between the big 5 per season Transfer fees Figure 14: Total transfer fees for the top five transfers incoming and outgoing, France Figure 15: Total transfer fees between the big 5 per season Player characteristics Figure 16: Number of transfers and average transfer fees per player age incoming and outgoing, Italy Figure 17: Number of transfers and average transfer fees per player by age range incoming and outgoing, England Figure 18: Number of transfers and average transfer fees per player by age range incoming and outgoing, France Figure 19: Number of transfers and average transfer fees per player by age range incoming and outgoing, Germany Figure 2: Number of transfers and average transfer fees per player by age range incoming and outgoing, Italy Figure 21: Number of transfers and average transfer fees per player by age range incoming and outgoing, Spain Domestic versus international Figure 22: Number of incoming transfers with total transfer fees greater than USD 5 million, Germany compared with England, Spain, Italy and France