English clubs buck market trends to bring in the stars.
Premier League clubs have spent a record breaking £710million over the course of 2011, new figures reveal.
Top flight sides spent £485million this summer – an increase of 33% on last year’s spending – and £225million in January, according to Deloitte.
Arsenal, Chelsea, Liverpool, Manchester City and Manchester United have spent over £50million on players this summer alone as football defies the economic difficulties experienced by the rest of the country.
The previous record was £675million in 2008, when Sheik Mansour tookover Manchester City and started spending recklessly.
Analysts put the record down to increased expectations among top clubs and predict that the high spending will continue.
Deloitte found that this summer Premier League clubs have spent around £165m on English players – a huge increase on the £50million spent last summer.
The Premier League’s home-grown player rules mean managers are more inclined to buy British, according to Dan Jones, partner in the Sports Business Group at Deloitte.
He also thinks there will be more loan deals completed in the next few years as clubs look to balance their books to comply with UEFA’s financial fair play rules.
“Apart from last year, summer spending has held up around this £400-500million mark,” Jones said.
“That seems to be the norm for the last four or five years and there is no compelling reason to think why it’s going to drop.
“Football is not immune to what is going on in the wider economy but it is pretty resistant to it. Football’s revenues are continuing to increase and I don’t think it will fall.
“This is a record calendar year because if you look at the top five clubs they have all had reason to spend.
“There is a new-ish manager at Liverpool, a new manager at Chelsea, ambitious owners at City, Manchester United looking to refresh, and Arsenal needed to spend too.
“The percentage of transfer money going overseas is the lowest we’ve seen, apart from 2009,” he added.
“The rules on signing homegrown players, as defined by the league, effectively mean you have a larger squad if you buy British.
“That’s why we have seen the likes of Stewart Downing, Jordan Henderson and Ashley Young move.
“A lot of loan deals happened. That seems to be happening a lot over the last few years.
“With the financial fair play rules, if you are trying to balance your books you don’t want higher wages for players who are not playing.
“Therefore you will move them on if you possibly can.”