The prolonged transfer saga of Manuel Locatelli, with Juventus and Sassuolo unable to agree on a five-million-euro difference in the valuation of the player, has sparked significant financial discussions among Juventus fans. Many have pointed to the Premier League’s higher broadcasting revenues as the reason why English clubs are seemingly able to outspend Juventus in the transfer market. But is that the whole story?
The Role of Broadcasting Rights in European Football
There’s no doubt that the Premier League’s broadcasting deals generate significantly higher revenue than the leagues of Italy, Spain, or Germany. In fact, the Premier League is renowned for its lucrative broadcasting contracts, which result in an enormous financial windfall for the clubs. However, what often gets overlooked is the way this money is distributed among the clubs.
Unlike other leagues, where a large portion of the revenue goes to the top-performing teams, the Premier League employs a system where broadcasting income is divided almost equally among all teams. This means that even the lower-ranked teams in the Premier League benefit from a substantial share of the overall broadcast revenue. While the top teams still earn more money overall, this distribution model works to level the playing field to a certain extent, ensuring that smaller clubs aren’t left too far behind financially.
While it’s true that the Premier League’s top teams—such as Manchester United, Liverpool, and Manchester City—still earn more from broadcasting deals than Juventus, the difference is not as vast as many might believe. With a good performance in the UEFA Champions League, Juventus can significantly close the gap, potentially even surpassing some of the top English clubs in terms of broadcasting revenue.
A Look at the Latest Deloitte Money League
According to the latest edition of the Deloitte Money League, which is considered the most authoritative benchmark for comparing football club revenues worldwide, the disparity between Juventus and the Premier League’s top six clubs is not as wide as it might seem. This report highlights the importance of consistent performance on the field, particularly in international competitions, in boosting a club’s financial standing.
The key takeaway here is that while the Premier League’s TV broadcasting deals provide a significant financial advantage, this gap in revenue is not the sole reason why English teams are able to spend more in the transfer market compared to Juventus. In fact, there’s a much larger force at play in this financial landscape.
The True Financial Power in Football: Oil Money
So, if it’s not all about broadcasting rights, what is it that’s allowing Premier League clubs, particularly the ones with the biggest transfer budgets, to outspend Juventus and other European giants?
The answer lies in the involvement of wealthy owners, particularly those from oil-rich nations. Over the past decade, the Premier League has seen an influx of investment from Middle Eastern consortiums, including the Abu Dhabi United Group’s ownership of Manchester City and the Saudi-backed takeover of Newcastle United. These owners have brought with them vast fortunes, enabling their clubs to spend well beyond their means, often in the form of significant investment in the transfer market.
This influx of “oil money” has allowed Premier League clubs to pursue high-profile transfers, often outbidding other clubs like Juventus, whose financial backing is more traditional. In contrast, Italian clubs, including Juventus, have not seen similar levels of external investment, which limits their ability to compete on the same financial level in the transfer market.
Comparing Transfer Market Spendings: Juventus vs. Premier League Clubs
To further illustrate this point, let’s take a look at the transfer spending of Juventus and some Premier League clubs in the past two seasons. Since the pandemic began, Juventus has made several key signings, including:
- Arthur Melo (€15M + Miralem Pjanic)
- Dejan Kulusevski (€40M)
- Federico Chiesa (€60M)
- Weston McKennie (€23M)
- Alvaro Morata (€20M)
- Manuel Locatelli (€35M)
This puts Juventus’ spending in the last two seasons at around €193 million, which is significant, especially considering the financial challenges posed by the pandemic. In comparison, Premier League clubs like Manchester United, Arsenal, and Tottenham Hotspur have spent similar amounts, if not more, in the same period:
- Liverpool:
- Ibrahima Konaté (€40M)
- Diogo Jota (€43M)
- Thiago Alcântara (€30M)
- Konstantinos Tsimikas (€13M)
- Tottenham:
- Cristian Romero (€50M)
- Bryan Gil (€25M)
- Joe Rodon (€12M)
- Sergio Reguilón (€30M)
- Matt Doherty (€17M)
- Pierre-Emile Højberg (€17M)
Despite Liverpool’s lower transfer spend, other English clubs have invested heavily in improving their squads, and this is largely thanks to the oil money fueling their financial capabilities.
The Real Difference: Oil Money vs. Traditional Revenue
While Juventus is still competing at the highest level in European football, its financial resources are limited by the absence of wealthy owners who can inject vast sums of money into the club. In contrast, Premier League teams, particularly those backed by Middle Eastern wealth, have an almost limitless supply of funds to invest in the transfer market.
Thus, the perceived gap between Juventus and the top Premier League clubs isn’t solely a result of broadcasting revenues. It’s a reflection of the vast financial power that has entered the English game, primarily driven by the influx of oil money. Until Italian football sees similar investment, it will be difficult for Juventus to compete with the financial might of the Premier League’s wealthiest clubs, despite their success on the pitch.
Conclusion: Financial Realities in Football
In conclusion, while the Premier League’s broadcasting deal does provide English clubs with a financial advantage, it is the massive financial backing from oil-rich owners that has truly allowed top Premier League clubs to dominate the transfer market in recent years. Juventus, on the other hand, continues to rely on its traditional revenue streams, such as matchday income and Champions League success, to fund its spending. While Juventus remains one of Europe’s elite clubs, it’s clear that the financial landscape of football is shifting, and oil money is becoming an increasingly influential factor in the game.