Premier League transfer spending on the rise

English Premier League clubs spent some 485 million pounds ($789 million) in the summer transfer window, a 33 percent rise on last year, according to analysis published by advisory firm Deloitte on Thursday.

The figures showed that Arsenal, Chelsea, Liverpool, Manchester City and United all exceeded 50 million pounds of transfer spending, accounting for around 66 percent of the total.

"This summer's spending is largely focussed amongst the top end Premier League clubs most strongly competing for domestic and European success and the consequent financial rewards," commented Deloitte's Dan Jones in a statement.

"The football authorities' encouragement for home grown players has contributed towards the increased scale of fees for the transfer of young English talent this summer," he added.

"The resurgence of transfer spending is also apparent in other top European leagues. Despite domestic difficulties delaying the start of their seasons, transfer spending is considerably up amongst clubs in Serie A and La Liga."

Manchester City, the world's richest club owned by Abu Dhabi's Sheikh Mansour, have spent about 76 million pounds with Argentina striker Sergio Aguero and French forward Samir Nasri their two biggest signings in the window which closed on Wednesday.

Deloitte said clubs had spent around 165 million pounds, or 34 percent of their total outlay, on English players.

Transfer fees to foreign clubs were some 205 million pounds, down 25 percent on the same period in the previous year.

"Compared to the top leagues in other countries, the Premier League generates significantly more revenue and continues to redistribute significant financial value to overseas clubs through the player transfer market," the Deloitte statement said.

"Clubs in Spain, Belgium, Netherlands, France and Italy have particularly benefitted this summer."

Gross transfer spending by top division clubs in Italy, Spain and France was also higher than the same period last year. German clubs spent at a similar level to 2010.

"As in England, in order to meet UEFA's break-even requirements, clubs will need an appropriate balance of revenue generation against these expenditures," said Jones.

European soccer body UEFA has issued rules, to be phased in over the next two seasons, to stop reckless spending on wages and transfer fees.

Under the requirements, spending cannot exceed revenue from TV rights, gate receipts, competition prize money and sponsorship. Clubs who break the rule face expulsion from European competition.

($1 = 0.614 British Pounds).