LONDON, United Kingdom: The Premier League transfer premium reached nearly £20 million this summer, with clubs paying £39.4 million on average for domestic signings against £20.2 million for arrivals from abroad.
Kieran Maguire, professor of football finance at the University of Liverpool, described the gap to BBC Sport as a “Premier League tax.”
High-value domestic transfers also increased sharply. The number of deals worth at least £40 million between Premier League clubs rose from six two years ago to 18 this summer.
Across the whole market, there were 27 transfers worth £40 million or more this summer. That compared with 13 in the 2024-25 season.
Carlos Baleba illustrated the trend. Brighton signed him from Lille for £23 million three years ago before selling him to Manchester United for £70 million last week.
Other domestic deals included Tottenham Hotspur paying Manchester City £75 million for Savio. Everton received £65 million for Iliman Ndiaye, while West Ham United collected £85 million from Tottenham for Mateus Fernandes.
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Maguire said Premier League clubs increasingly sign overseas players early, develop them in England and later sell them to richer domestic rivals.
The financial gap extends beyond individual transfers. Arsenal, Chelsea, Liverpool, Manchester City, Manchester United and Tottenham spent a combined £1.658 billion on players, while the other 14 Premier League clubs spent £1.833 billion.
Former Bournemouth chairman Trevor Watkins told BBC 5 Live Breakfast that English football now operates within its own financial bubble because its revenues exceed those of most rival leagues.
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FC Porto president Andre Villas-Boas said the spending power of English clubs has changed, so his club can compete for players. He said Porto now finds itself competing for talent with clubs such as Coventry and Brentford rather than Manchester City or Liverpool.
La Liga corporate general director Javier Gomez also warned that Premier League spending could inflate transfer fees and wages across European football.
