UEFA warns of transfer market polarization due to Premier League spending

UEFA has warned of a “clear two-speed system” emerging in the football transfer market, driven by massive spending from English Premier League clubs. According to UEFA’s latest report on European club talent and competition, the estimated €4.6bn (£4bn) spent by Premier League clubs this summer is “larger than that of the next eight largest European countries combined”.

UEFA’s Executive Director of Finance, Andrea Traverso, expressed concern that rising transfer values, particularly in England, are increasing financial pressure on clubs. The report notes that English clubs were involved in over 60% of deals, paying an average of approximately €24m per inbound player, whereas other major European leagues averaged between €4m and €5m.

This spending represents 56% of the 20 Premier League clubs' annual revenue, a significant increase from the 33% average seen in the decade prior to the pandemic. Traverso cautioned that this creates a “more fragile model” due to a growing dependence on market inflation and liquidity, warning that any correction in values or slowdown in demand could severely impact clubs carrying debt.