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Premier League transfer windows can be a noisy affair, with vast amounts of money being thrown around, as deals are made and players bought and sold. The summer of 2023 reached a record spend of £2.36 billion, straight after a high-spending (£815 million).

January 2024, though, has been , closing on just £100 million.

So what has made club owners so reluctant to splash their considerable amounts of cash this winter? Are they just all happy with the squads they have already bought?

A more likely reason is that transfer activity has been hit by several outside factors coming in to play at the same time, all leading to a tightening of the Premier League purse strings. Here are some of the reasons for the spending slow down.

Financial rules starting to bite

The end of 2023 saw some big clubs facing scrutiny in relation to the Premier League’s “profitability and sustainability” , which determine how much money clubs are allowed to lose over a certain period. Everton were found to have a few years ago and were docked ten points in November as a result (a sanction they are ).

Then Chelsea reported themselves over incomplete financial reporting under their previous ownership and are , having already been fined for the same thing.

Meanwhile Manchester City are still in relation to alleged breaches going back to 2015-2016. And Everton (again) and Nottingham Forest were both then of the rules for the 2022-23 season.

While each case is different, the focus here is clearly on financial management. In such a competitive league, all clubs will be wary of having points deducted, or even being relegated as a punishment, so are keen to have their books in order.

The Saudi slow down

Some by the Saudi Pro League was a major contributor to the sums spent in the Premier League over the summer.

Then, clubs in receipt of that money were able to buy new players, creating an upward spiral of transfer spending. But in January 2024, the Saudi appetite for Premier League players has not returned (for now), which has slowed the market overall.

In fact, some of the players who signed to Saudi clubs over the summer have with their moves. It may be that this has influenced other players who had been considering a similar change.

Italian teams too have spent less in this transfer window after the government recently scrapped a on the wages of sport clubs’ new signings from abroad.

Rising costs

There is also the issue of how transfers are paid for. Continuously large or have left clubs with debts that are , as deals are usually paid off in instalments. Combined with financial regulations, these costs mean there is in the current transfer market.

As a way of dealing with those costs, January 2024 has seen quite a few loan deals instead of permanent transfers. These are cheaper because the loaning club retains overall ownership, but can reduce their salary bill at the same time, which is a big factor in the financial regulations they need to be mindful of.

It’s not all bad…

There is one transfer market that has had a fairly buoyant month, and that’s in women’s football. The sums involved are , and the squads are not subject to such strict financial regulations, but still, the market is on an upward trajectory.

Chelsea broke the British transfer record for a women’s player with Colombian international (€450,000 (£383,000)), while Manchester City bought out of a £200,000 release clause.

In the men’s game though, the January transfer window has been quiet because of timing. Different issues have come together all at once to dampen the market, and most of these are things that clubs will just need to get used to.

Once they have adjusted, we will no doubt be seeing more activity – and eye-watering sums – in future transfer windows. Research has shown that Premier League clubs are to economic change.

, Principal Lecturer, Accounting, Economics and Finance,

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