"Heightened Competition Pushes English Clubs to Overextend on Transfer Market: An Analysis"
Premier League's Dominance in the Transfer Market
The English Premier League (EPL) is currently leading the charge in this summer's transfer market, with seven of the top 10 spots in terms of spending. This financial dominance, according to experts, is largely due to the EPL's extraordinary TV rights revenue and savvy financial strategies.
In the summer transfer window of 2025, Premier League clubs have already spent over £1.6 billion, with expectations of near or exceeding £3 billion by the end of the window. This spending far outstrips that of France's Ligue 1 or any other major league.
The financial muscle derived from TV rights is a fundamental driver of the EPL's spending power. Liverpool, for instance, has built buffers against the Premier League’s Profit and Sustainability Regulations, allowing clubs to lose €120 million over a rolling three-year period, enabling substantial spending on player acquisitions. The club's profitability, driven by matchday revenue (e.g., expanded Anfield with record attendance) and Champions League bonuses, further supports such spending sprees.
The attraction of adaptable and high-quality French players is another factor contributing to the EPL's dominance. French players, known for their strong technical skills, tactical versatility, and adaptability, are often sought after by Premier League clubs. The EPL's financial power allows it to attract and buy top French talent, which also boosts the league's reputation as a destination for elite players.
Notably, Liverpool alone has spent more than all Ligue 1 clubs combined, highlighting how the EPL can absorb top French talent financially, affecting the balance across leagues. Other Premier League clubs, such as Manchester City (€177 million), Arsenal (€224 million), and Chelsea (€244 million), have also made significant investments in the transfer market.
The case of Hugo Ekitike, a French striker sold from Eintracht Frankfurt to Liverpool for €95 million, including bonuses, illustrates the trend of clubs integrating options and shares of potential plus-value into future transfers. Paris Saint-Germain had sold Ekitike with a share of the potential plus-value realized by the German club when he was sold elsewhere.
However, French clubs are facing financial challenges, with TV rights revenues making up an average of 36% of club revenues being non-existent, except for beIN. This has led to French clubs selling players due to a lack of cash. On the other hand, foreign clubs believe that recruiting a French player poses less risk compared to an English player, as they are not accustomed to frequent moves.
As the European transfer market approaches its end for the month of July, it is clear that the imbalance in spending between the EPL and other European leagues is a complex issue influenced by factors such as TV rights revenue, financialization of football, and the reputation and adaptability of French players. This financial clout, coupled with the attraction of adaptable and high-quality French players, consolidates the Premier League’s dominance in the transfer market compared to leagues like Ligue 1, LaLiga, Serie A, and the Bundesliga.
[1] Source: Transfermarkt [2] Source: Financial Times [3] Source: Liverpool Echo
The European Union, with its football-loving population, is closely observing the Premier League's dominance in the transfer market, as they spend extravagantly on top European and French talents. The purchase of Hugo Ekitike, a French striker, by Liverpool from Eintracht Frankfurt for €95 million, including bonuses, is a prime example of this trend.
While other major European leagues like Ligue 1 struggle financially, mainly due to the lack of significant TV rights revenues, this spending power helps the Premier League to attract the best French players, thereby reinforcing its position as the dominant league in the transfer market.
