- Analysis of Premier League’s Summer Transfer Dealings
The Premier League’s broadcast and TV rights ensured the spending powers of its clubs over the course of the summer were fully felt and a lot of business was done in what was a very active transfer window.
The Premier League donned out an astonishing £1.4 billion in player recruitment as 115 players settled into new Premier League surroundings.
The pick of the bunch was Harry Maguire, as Manchester United’s search for a commanding presence at the back led to them splashing out an incredible £80m on the England international. Arsenal surprised fans and created a new buzz of optimism among them with the acquisition of Nicolas Pepe, Lille pocketing a grand £72m for a player involved in over 30 goals last season.
Tottenham infamously failed to sign a single player in the last two transfer windows but were not messing around this time, Daniel Levy and co-sanctioning the purchase of £63m midfield powerhouse Tanguy Ndombele from French side Lyon while Pep Guardiola and Manchester City’s lust for continental success required the extra acquisitions of midfield lynchpin Rodri from Atletico Madrid for £62.5m and the procurement of right back Cancelo for £60m from Italian giants Juventus rounding off the most expensive deals of the summer transfer window.
In total amount of money spent, Manchester United once again top the lot, their bid to return to England’s top table leading to the splurge of a grand total £148m on Harry Maguire, left back Aaron Wan-Bissaka (£50m from Crystal Palace) and Welsh winger Daniel James (£18m from Swansea). Premier league new boys Aston Vila spent the next most, acquiring 12 players for a total outlay of £144.5m in a titanic bid to stay afloat in the Premier League.
Four other clubs surpassed the £100m mark. Arsenal must consider themselves good enough to challenge for top honors this season after spending a grand total £138m on Pepe, £27m on William Saliba, (who they signed and loaned back to Saint Etienne for a season), Gabriel Martinelli for £6m, Dani Ceballos who they acquired on loan from Real Madrid and deadline day arrivals David Luiz (£8m) and Kieran Tierny (£25m) acquired from Chelsea and Celtic respectively.
Up next, Manchester City. As expected, the Citizen bolstered their squad once again after falling short in the Champions league quarter finals by spending £134.8m on Rodri, Joao Cancelo, as well as the signing of Zackary Steffen for £7m and exercising their buy back clause in signing Angelino from PSV for a meagre £5.3m.
Expectations and pressure must be high at Goddison Park this season after Everton splashed a stupendous £118.5m on Moise Kean (27.5m), Jean-Phillipe Gbamin (£25m), Fabian Delph (£9m), acquiring Andre Gomes in a permanent deal from Barca for £22m and deadline day deal of Alex Iwobi for a reported £35m.
Tottenham compensated for a two window no-show by utilizing just over £100m in the dealings for Ndombele, Jack Clarke (£8.5m) and deadline day signing of Ryan Sessegnon from Fulham for £30m and loan signing of Argentine midfielder, Giovanni Lo Celso from Real Betis.
Spending of other clubs in descending order are Leicester (£91m), West Ham (£78m), Newcastle and Wolves both spent £65m each, Brighton (£58.5m), Southampton (£50m), Bournemouth (£45.7m), Watford (£45.5m), Sheffield United (£43m). Chelsea’s transfer ban meant thy could only spend £40m in turning Mateo Kovacic’s loan into a permanent move. Burnley and Crystal Palace are behind them, having spent £15m and £11m respectively.
Liverpool’s decision to bolster their Champions league winning squad with just a total £4.4m outlay would surely be tested as the season progresses while Norwich prop up the table having spent next to nothing, the Canaries having total faith in the side that won the Championship and got them into the big time, with just £1.1m spent.
In terms of outgoings, the Premier League recouped £806.5m from player sales with 291 players sold against £359m cash influx gotten in 2018.
Chelsea top the list of gainers, Eden Hazard’s sale to Real Madrid bringing in £130m and Alvaro Morata’s loan was made permanent by Atletico for £58.3m.
Leicester are next, receiving £80m from Manchester United in a world-record fee for a defender for Harry Maguire’s move, United themselves recouping £74m from player sales. Others include Everton (£60m), Manchester City (£58.1m), Arsenal (£55.5m), Crystal Palace (£50m), Bournemouth (£36.5m), West Ham (£33.25m), Newcastle (£31.7m), Tottenham (£29.7m), Liverpool (£28.82m), Southampton (£26m), Watford (£18.2m), Burnley (£8.5m) and Wolves receiving £3m in player fees.
Dan Jones, a partner Sports Business Group at Deloitte feels that with this level of net spend and the Premier League broadcast right values, wages would increase at a greater rate than revenue, returning a wages to revenue ratio of over 60%.
He said “But this does not signal major financial concerns because Premier League clubs collectively generated pre-tax profits of £426m in 2017-18, while net spend as a proportion of revenue of 12% is at its lowest since 2012.”
Deloitte has, however, predicted that La Liga clubs could still overtake the total money spent by the Premier League as their total spending currently sits at £1.1bn with Real Madrid, Barcelona and Atletico Madrid responsible for as much as two thirds of that figure alone. With the Spanish transfer window not closing until September 2 and Barca’s persistent interest and pursuit of Neymar, they could be well on their way to shattering that record figure.
Eat’N’Go Expands To East Africa, Projects 180 Stores By Year End
In a bid to further extend its tentacles beyond the West African market, Eat’N’Go limited, one of the leading Quick Service Restaurant (QSR) operators in Nigeria and master franchisee for world-class food brands – Domino’s Pizza, Cold Stone Creamery, and Pinkberry Gourmet Frozen Yoghurt, announced its expansion into the East African market.
This development comes after the successful acquisition of the franchisee which operated Cold Stone Creamery and Domino’s Pizza in Kenya. This acquisition will see Eat’N’Go limited become the largest Domino’s pizza and Cold Stone Creamery Master Franchisee in Africa with operations in Nigeria and Kenya.
Since its entrance to Nigeria in 2012, the QSR company has grown exponentially and has continuously nurtured the drive to extend its footprint across the African market. This acquisition provides them their first foreign market expansion, making them a Pan African company with a total number of 147 outlets across Africa and a projection to reach 180 stores by end of 2021.
Group Chief Executive Officer and Managing Director Eat’N’Go Limited, Patrick McMichael said that expanding into East Africa represents a very exciting time in the growth of the organization and also a strategic investment for the firm and its stakeholders. “Over the years, we have fostered the mission to not just bring the best QSR brands to Africa, but to directly impact on Africa’s economy and we are glad we are finally on the way to making this happen. Studying the growth of the Kenyan market in the last couple of years, we are convinced that now is the time to extend our footprint into the country.”
“We are very thrilled about this expansion as this move avails us more opportunity to provide Jobs to more Africans, especially in times like this. We remain thankful to all our customers, partners, and stakeholders who have supported us this far and we are more than ready to strengthen our dedication in satisfying the needs of our customers” Patrick added.
Eat’N’Go has over the years maintained its position as the leading food franchisee in Nigeria. As it expands its presence to other parts of Africa, the organization also places a strong focus on the quality of its products and services of all its three brands. The expansion to this new region is in line with the company’s plan to reach 180 stores across Africa by the end of 2021.
The milestone achievement and development will better position the company in its contribution to Nigeria and Africa’s economy. Currently home to over 3000 staff members across Africa, the company is committed to continuously provide job and business opportunities across the continent.
Eat’N’Go launched in 2012 in Nigeria with the vision to become the premier food operator in Africa. Today, the company has over 147 stores in Nigeria and Kenya and it continues to deliver on this promise by successfully rolling out the globally recognised brands Cold Stone Creamery and Domino’s Pizza across Africa. The company continues to expand its presence in key markets by fusing company goals with new strategic development goals and is projected to reach 180 stores across Africa by end of 2021.
Shoprite Exit: LCCI Explains Challenges Hurting Business Operations in Nigeria
Following the recent announcement of Shoprite, a leading South Africa retail giant, that it is leaving the Nigerian market due to harsh business environment and tough business policies, Dr Muda Yusuf, the Director-General, Lagos Chamber of Commerce and Industry (LCCI) has explained some of the challenges responsible for such decision despite Nigeria’s huge population size.
Yusuf said while such decision is negative for the Nigerian economy, several factors like harsh business environment could have forced the company to make such decision. He said it also could be due to intense competitive pressure.
He said, “Shoprite is an international brand with presence in 14 African countries and about 3,000 stores. The comparative analysis of returns on investment in these countries may have informed the decision to exit the Nigeria market.
“The opportunities for retail business in Nigeria is immense. But the competition in the sector is also very intense.
“There are departmental stores in practically every neighbourhood in our urban centres around the country. There is also a strong informal sector presence in the retail sector. It is a very competitive space.”
According to the Director-General, there are also important investment climate issues that constitute downside risks to big stores like Shoprite.
He said, “These include the trade policy environment, which imposes strict restrictions on imports; the regulatory environment, which is characterised by a multitude of regulators making endless demands.
“There is also the foreign exchange policy, which has made imports and remittances difficult for foreign investors. There are challenges of infrastructure which put pressures on costs and erodes profit margins.”
The LCCI boss added, “But we need to stress that Shoprite is only divesting and selling its shares; Shoprite as a brand will remain. I am sure there are many investors who will be quite delighted to take over the shares.
“It should be noted that there are other South African firms in Nigeria doing good business. We have MTN, Multichoice, Stanbic IBTC, and Standard Chartered Bank, among others. Some of them are making more money in Nigeria than in South Africa.”
He added that some sectors are more vulnerable to the challenges of the business environment than others.
Afrinvest Appoints Mrs. Onaghinon As COO
Afrinvest West Africa Limited, has appointed the former head of public private partnership agency of the Edo State, Mrs Onoise Onaghinon as its chief operating officer.
Onaghinon joined Afrinvest in 2003 as an analyst in the firm’s investment banking division, rising through the ranks to become an associate, then vice president and eventually executive director & head of investment banking.
She is a seasoned veteran in the Nigerian capital markets and investment landscape with over 18 years of experience in capital raising, mergers and acquisitions, and restructurings across many industries.
In 2017, Onaghinon took a sabbatical from the Firm to head the Public Private Partnership Agency of the Edo State Government. Having acquitted herself creditably in the public sector, she has rejoined the Firm to resume as the new COO.
Speaking on the appointment, group managing director of Afrinvest, Ike Chioke, said: “over the years, Onaghinon has demonstrated great leadership, professional excellence and outstanding client commitment in driving the firm’s business units, particularly our investment banking division. We are delighted to have her back and we look forward to leveraging her cross-disciplinary experience across the Afrinvest group”.
In her new role, Onaghinon will oversee human resources, legal & compliance, internal control and general services while leading the firm’s initiatives to improve efficiency across its subsidiaries.
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