Premier League clubs’ reliance on the continued buoyancy of the transfer market is creating a “fragile model” which could put their long-term survival at risk, UEFA’s finance chief has warned.
Television deals worth almost £4billion annually again allowed English clubs to dominate the 2026 summer transfer market, spending €4.6bn according to UEFA’s new European Club Talent and Competition Landscape report.
That was more than the next eight highest-spending European countries combined and was equivalent to 56 per cent of the 20 clubs’ annual revenues, the report said.
UEFA’s report found a 44 per cent increase in sales between English clubs this summer compared to last year, making it by far the largest transfer market in terms of value, generating more than €2.2bn (£1.9bn) in transfer fees.
The report observed: “As few clubs outside England are able to match wages or transfer prices, English clubs are relying increasingly on the internal market for their record earnings and the profits that these deals tend to trigger.”
Andrea Traverso, UEFA financial sustainability and research director, highlighted the risk of clubs relying on transfer fees remaining high to generate revenue.
“Transfer values continue to rise sharply, particularly in the English market, increasing future pressure on club financial results through higher amortisation charges,” he wrote.
“These costs are currently being offset in part by significant transfer profits, but this creates a more fragile model, with clubs increasingly dependent on continued market inflation and liquidity.
“This risk is amplified by the fact that many acquisitions are not paid for immediately; payments are often deferred over several years, while transfer receivables may be factored to generate short-term cash. The result is a growing level of transfer debt and a greater reliance on future inflows to finance past investment.”
He said these developments pointed to “a growing polarisation of the market with the emergence of a clear two-speed system”.
He added: “Under such conditions any slowdown in buyer demand, correction in transfer values or tightening of credit conditions could therefore expose underlying pressure on profitability and financial sustainability.”
The report found Chelsea and Aston Villa – who were both fined for the second summer in a row by UEFA for breaches of its financial sustainability rules – both broke the all-time record for one club’s transfer earnings in a single summer previously held by Monaco in 2017, with the Blues earning an estimated 471million euro (£405m) and Villa earning €366m respectively.
The average transfer fee for inbound players at Premier League clubs increased by eight per cent this summer to a record €24m.
Meanwhile, the Premier League has restated its desire to wrap up a ‘New Deal’ with the EFL as soon as possible, which would mean solidarity payments to the 72 EFL clubs more than doubling.
The 10-year offer was presented to EFL clubs last week after discussions between the leagues at executive level.
Documents seen by the Press Association show that it includes an undertaking to increase solidarity payments to the EFL by £163million a year by 2028-29, more than double the current estimate of £134m. The deal also pledges £81m extra in the current season.
The extra money is understood to be tied to new agreements on cost controls, a commitment to reduce the Carabao Cup semi-finals to one leg to combat fixture congestion, and to agree a position on the Saturday 3pm blackout ahead of the next domestic television deals.
Top-flight clubs gathered for their first shareholders’ meeting since the season kicked off in London on Thursday and expressed their commitment to doing a deal swiftly.
“Since a fair and generous proposal was formally offered to the EFL last month, discussions have continued between the leagues’ executives, and it was presented to EFL clubs last week,” a league statement read.
“The Premier League remains committed to concluding a football-led solution as soon as possible so additional money can flow to EFL clubs this season.”
That reference to a “football-led solution” is a nod to the possibility that the Independent Football Regulator’s ‘backstop’ powers could be triggered by either league to impose a solution if the leagues cannot agree one themselves.
The IFR is set to publish its ‘State of the Game’ review in the next few weeks. It will give the regulator’s position on the financial health of the English game, and there is a school of thought that the findings could strengthen the EFL’s hand in the negotiations.
However, EFL clubs are understood to have been warned by league executives that invoking the backstop could mean they are kept waiting up to two years for a new agreement to be signed off, and that the outcome would be difficult to predict.
