Alexander Isak's record £125m transfer deal from Newcastle United to Liverpool has ended a summer of huge spending in the Premier League.
This blockbuster deal, along with a series of other large deals on the last day of the transfer window - typically the £55 million spent by Newcastle to buy striker Yoane Wissa from Brentford - has raised the total spending of the world's richest tournament to £3 billion. This is the first time in history that the Premier League has reached this milestone.
Total spending in the Premier League this season has reached a record level, surpassing the £2.7 billion mark of the 2022-2023 season. And remember, the January transfer window has not yet started. In the summer alone, 20 clubs have spent more than £650m than the previous spending record set in 2023.
Of course, Premier League teams also earn a part from player sales. However, net spending of £1.2 billion remains the highest on record - up 114% from last summer and 13% above the old record in 2022, according to data from Deloitte.
Tim Bridge, a key partner of Deloitte Sports Business Group, commented: "The summer saw the Premier League record for spending for the third time in four years sending a strong signal that, despite the tight trend in the rest of Europe, English clubs do not intend to slow down their investment in products on the pitch."
While the Premier League's freedom has reached new heights, the Championship has also seen spending skyrocket, reaching £240 million - £95 million higher than last season.
These figures come despite the Premier League's strict Profit and Sustainability Regulations (PSR), and reflect the huge revenue from television rights that even mid-level teams enjoy.
Bridge commented: "There is still a complex management context from both domestic and European agencies, but it is clear that the demand for transfers is still very strong. However, financial sustainability must still be the focus of all business activities, to ensure long-term success for any club".
The financial strength of the Premier League currently accounts for 51% of the total spending of the top 5 European national championships, including Bundesliga (Germany), La Liga (Spain), Serie A (Italy) and Ligue 1 (France).
According to Deloitte, the average net spending of the remaining 4 tournaments is only 90 million Euros (78.2 million pounds). This shows an increasingly large gap compared to English football.
Premier League champions Liverpool - who also spent £100 million to sign Florian Wirtz - topped the list of clubs with the most spending this summer.
"Expansion of the stadium, enhancing commercial partnerships and success on the pitch have helped their revenue surpass the 600 million mark.
They can absolutely pay, regardless of the PSR regulation. But that also raises a bigger question: how will other clubs, in addition to the already famous group, catch up?" - Bridge added.
Liverpool's total spending of £420 million, with a net of £229.5 million, is far behind Chelsea (285 million pounds) and Arsenal (255 million pounds). However, Chelsea have earned £228.5 million from selling players, even making a small net profit.
