UEFA warns of financial risks in Premier League transfer market

UEFA has raised alarms regarding the financial stability of the Premier League, warning of a “more fragile model” emerging due to massive transfer spending. According to UEFA’s European club talent and competition landscape report, English clubs are driving a “two-speed system” in the transfer market, with their estimated €4.6bn spend exceeding that of the next eight largest European countries combined.

UEFA’s finance chief, Andrea Traverso, noted that English clubs were involved in over 60% of deals, paying an average of approximately €24m per inbound player, compared to just €4m to €5m in other major European leagues. This widening gap in purchasing power increases future pressure on club financial results through higher amortization charges.

Concerns also surround the “buy now, pay later” model used by several English clubs. Premier League clubs collectively owe nearly £3.5bn in unpaid transfer fees, representing future installments. Among the top six clubs with the highest transfer liabilities are Manchester City, Manchester United, Chelsea, Tottenham, Arsenal, and West Ham. Traverso warned that this creates a dependency on continued market inflation and liquidity to sustain operations.