Premier League clubs shattered records last January when they splashed out £815million on new signings.
This winter window has got off to a quiet start and is not expected to be as busy.
Here, with the help of football finance expert Kieran Maguire, Standard Sport looks at why clubs are tightening their belts.
Why is this January window expected to be quieter?
Premier League clubs spent £2.8billion last season, and that transfer expenditure has caught up with them.
Many clubs need to reduce their spending to ensure they do not flout profit and sustainability rules — like Everton.
“Historically the Premier League have been quite relaxed but, since the proposal of an independent regulator, they have decided to find some teeth,” says Maguire.
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“The Everton judgement has made clubs realise this could be us next time, unless we take a fairly strict approach to our level of spending.
“It’s exactly the same way as if you go a bit crazy with your credit card for three months, you are now having to go, ‘It’s Pot Noodles for tea for a short while’.”
So why are clubs such as Arsenal unlikely to be able to spend big?
Arsenal have racked up a net spend of more than £400m over the past three years and, while they are within the limits, that has left them with little room for manoeuvre.
That was highlighted in the summer when they signed David Raya on a loan deal. “Those years without the Champions League hit them quite hard,” says Maguire.
“Arsenal always used to be top two or three and have now become the fifth or sixth biggest revenue-generating club in the Premier League. Therefore, they have to be a little more cautious.”
What about Chelsea?
Chelsea have spent more than £1bn under owners Todd Boehly and Clearlake, but they have a bit more freedom than Arsenal as a result of them historically being excellent sellers.
Despite that, they will attempt to balance any January incoming business with the same number of outgoings.
“Chelsea have generated player-sale profits over the last decade of £706m,” says Maguire.
“Compare that to Arsenal, which is £318m. They have been smart, but if they don’t qualify for Europe, they have got to be very careful they do not end up in breach.”
Why are Tottenham still able to spend?
Spurs have always been very well run financially and their cash reserves were boosted by the summer sale of Harry Kane for an initial £86m.
“Tottenham are the most successful club in Premier League history from a financial point of view,” says Maguire.
“They are the only Premier League club whose wages are less than half of the revenue coming in. That gives them greater flexibility in terms of ability to spend.”
