Premier League clubs' transfer budgets after £3billion spent on new recruits

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Premier League clubs are busy searching for opportunistic deals as the January transfer window heats up. The top-flight sides will be looking to add to their squads just months after a record-breaking summer saw the league spend an eye-watering £3billion on new players .

While clubs prioritise the summer to bring in major recruits, January provides a chance to start rebuilding earlier . Manchester City accounted for almost half of the Premier League ’s £370m spend last winter as Pep Guardiola set about freshening up his squad.

A club’s transfer budget does not solely depend on the wealth of their owners but also on ensuring compliance with profit and sustainability rules (PSR). Additionally, teams aiming to qualify for European competition must consider UEFA’s squad cost ratio (SCR).

PSR limits losses to £105million over a three-year period, which is lowered by £22m for every year a club is outside the Premier League. Meanwhile, SCR allows clubs to spend up to 70 per cent of their revenue on squad-related costs.

Despite having to contend with the financial rules, the January window provides teams with an opportunity to strengthen for the short and long term. Manchester City are reportedly closing in on a deal for Bournemouth ’s Antoine Semenyo, who has a £65m release clause, as Guardiola’s side attempt to catch league leaders Arsenal , following on from their busy January window last year.

The Gunners spent heavily in the summer to provide Mikel Arteta with a level of squad depth that could finally see the club clinch the title. Arsenal spent around £250m on new recruits in the previous window but could still spend another £100m if required this month, according to football finance expert Kieran Maguire.

"We haven't seen their financial results for this year yet, but they will have a lot of headroom from a PSR point of view," Maguire told Mirror Football . "Arsenal have got plenty of wiggle room in January. Yes, they signed players in the summer, but even so, compared to some of the other clubs, it wasn't excessive.”

He added: "So if Arsenal wanted to spend, they could spend far in excess of £100million. I think the issue is whether players are available who are not cup-tied from a Champions League point of view.

"Arsenal are very strong financially. Their losses in the last couple of years were £70m and under the Premier League rules you are allowed to lose £105m. So again, they have got plenty of headroom. A very smart club."

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Not all clubs will be able to match Arsenal’s January budget. Aston Villa , sitting third in the table have previously made smart signings in the New Year under Unai Emery - a list that includes Morgan Rogers, Jhon Duran and Marcus Rashford - and have welcomed young winger Alysson from Gremio. However, as demonstrated by their quiet summer, Villa will be wary of complying with financial rules, rather than spending big to mount a title challenge.

Manchester United may not be enjoying the same type of success as Villa but the Red Devils still have the capacity to bolster their squad this month. Despite sacking manager Ruben Amorim earlier this week and having no European football, United could potentially spend £100m on new signings.

"Again, from an SCR point of view, which is the new rules which are kicking in, [United are] spending around half their revenue on wages. So they've got huge capacity," Maguire explained. "It's then a case of, can they spend the money?

"Well, yes, they've got a lot of debt but they're still well within their overdraft limit. What Manchester United tend to do is to buy players on credit. So they owe £466m in outstanding transfer fees for players that they've signed in the past.

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"I think that's more of an issue for the summer of 2026 rather than January. If they spend £100m in January, they'll be spreading that over three or four years. So from a cash point of view, it's not really going to make a difference. If that's the difference between Champions League and not Champions League, they've got to go for it if it's going to improve the squad."

Liverpool were the biggest spenders in the last transfer window, spending more than £100m each on Florian Wirtz and Alexander Isak during an expensive summer. The Reds have fallen below expectations so far this season but could stil turn to the transfer market to help rescue the current campaign.

"Liverpool have got the benefit of, yes, they had a spectacular summer of 2025, but if you take a look at their losses in the two previous years, they were never in danger of breaching PSR," Maguire said.

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However, the reigning Premier League champions have the added dilemma of dealing with Mohamed Salah ’s future. The star forward has 18 months remaining on his contract but had been outspoken about losing his place in the team shortly before representing Egypt at the Africa Cup of Nations.

On Salah’s situation, Maguire added: "Well, his wages are probably going to be something like £15m a year. So, if he left he would free up the wage budget. On top of that, because he's been there so long, effectively any money that they get is pure profit. And that goes into your top line."

Chelsea appear unlikely to make any major signings as they close in on a replacement for manager Enzo Maresca. However, both Newcastle and Tottenham reportedly have healthy transfer budgets this month, while Bournemouth and Brighton are also in the market for new players.

At the other end of the table, Burnley will be looking to add to their squad to help in their fight against relegation. Meanwhile, Nottingham Forest and West Ham will be searching for new signings as they aim to move away from the drop zone, having already brought in a new striker.

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