During the summer transfer window, English football set new spending records with the average fee for a player signed from another Premier League club reaching £39.4m. This is almost double the £20.2m spent on players arriving from foreign leagues.
Kieran Maguire, a professor of football finance at the University of Liverpool, describes this phenomenon as a Premier League tax. He points out that English clubs have become increasingly comfortable conducting business directly with one another, even among direct rivals.
High-value deals worth £40m or more have more than doubled from 13 two years ago to 27 this summer. While deals with continental European clubs rose from seven to nine, transfers between English clubs tripled from six to 18.
Maguire explains that smaller Premier League clubs now scout international markets extensively to bring players into English football, allowing top six clubs to subsequently sign proven talent. For instance, Carlos Baleba moved from Lille to Brighton for £23m before joining Manchester United for £70m.
Former Bournemouth chairman and sports lawyer Trevor Watkins notes that the Premier League operates within its own bubble. He emphasizes that English revenues simply dwarf what other leagues around the world can generate.
