UK January Spending Decreases by £715m Compared to 2023
Spending by Premier League clubs in the January transfer window has seen a significant decrease compared to previous years, with teams spending £715m less than in the 2023 winter window. The combined spending of the 20 top-flight clubs was only £100m, which is the lowest January spend in a non-Covid season since 2011-12 when the spending was £60m. This is a considerable drop from last year’s spend of £815m. The decrease in spending can be attributed to various factors, including financial regulations and a quieter month in foreign leagues.
Premier League Spending Drops Significantly
Only £30m in disclosed fees was spent on deadline day, which is a substantial decrease from the £275m spent on the same day in 2022. During the entire window, there were only 17 permanent transfers made by Premier League clubs, along with 13 loan deals. This modest spending is in contrast to the 2023-24 season as a whole, which still holds the record for the second-highest transfer spend ever at £2.5bn. The high spending during the summer transfer window has likely influenced the more prudent approach in January.
Rest of Europe’s ‘Big Five’ Leagues See Increase in Spending
While Premier League spending has decreased, spending across the rest of Europe’s ‘big five’ leagues – Serie A, La Liga, Ligue 1, and Bundesliga – has increased. These leagues saw a rise in spending from £218m in January 2023 to £388m in January 2024. Ligue 1 clubs had the highest gross transfer spend among Europe’s ‘big five’, with an expenditure of £162m. The Premier League followed with £100m, followed by Serie A (£85m), Bundesliga (£70m), and La Liga (£70m). This is the first January window since 2019 that the Premier League was not the biggest spending league globally.
Financial Rules and Other Factors Impact Spending
The charges against Everton and Nottingham Forest for allegedly breaching the Premier League’s Profit and Sustainability Rules (PSR) may have had a chilling effect on spending. Under these rules, clubs can only make losses of £105m over a three-year period. Everton has already been deducted 10 points for breaching these rules, and both Everton and Forest face additional charges for alleged breaches in their financial accounts. This, along with new Uefa cost controls and fewer manager changes this season, has contributed to the decrease in spending.
Potential Increase in Summer Spending
While spending has decreased in the January transfer window, experts predict that there may be a significant increase in spending during the summer. The pressure on clubs, including the Everton situation and the government’s scrutiny of the Premier League, may result in a spending frenzy. However, it is unlikely that the multi-billion pound levels seen in previous years will be reached. The emergence of young players and the natural strengthening of squads due to back-to-back record windows have also reduced the need for significant investment.
Deadline Day Deals
On deadline day, Crystal Palace made the biggest permanent signing by capturing Blackburn midfielder Adam Wharton for an initial £18m. Aston Villa signed forward Morgan Rogers from Middlesbrough in a deal worth £8m, and Tottenham secured the services of 21-year-old Romania defender Radu Dragusin from Genoa for £25m.
Notable Transfers in January
The most eye-catching deals in January were high-profile loans, including Kalvin Phillips’ move from Manchester City to West Ham, Borussia Dortmund re-signing Jason Sancho from Manchester United, and Eric Dier joining Bayern Munich from Tottenham. Tottenham’s biggest permanent signing was 21-year-old Romania defender Radu Dragusin from Genoa for £25m. Other notable permanent deals involved young players, such as Valentin Barco joining Brighton from Boca Juniors for £7.9m and Manchester City signing Claudio Echeverri from River Plate.
Predictions for the Summer Transfer Window
Experts anticipate that spending will return to similar levels seen in the last two record-breaking summer transfer windows. The domino effect of high-value transfers and the desire to improve on-pitch performance are usually key drivers of spending during the summer window. However, the financial regulations and other factors may still have an impact on the overall spending levels. The summer transfer window is expected to be more eventful than the subdued January window, but it remains to be seen whether it will reach previous multi-billion pound levels.