The transfer window doesn’t officially open until Wednesday but of course a lot of activity is already underway. The early signs are that the top Premier League clubs are finding it difficult to lure stars from Italy, Spain and Germany. United (Ronaldo, Tevez), Arsenal (Adebayor) and Liverpool (Mascherano, Alonso) are all in danger of losing, or have already lost, star players and are apparently finding it difficult to replace them. While Chelsea are reported to have made a number of unsuccessful recruitment attempts (Pato, Villa). The only exception is City, whose bottomless pockets enable them not only to pay high transfer fees but also offer ridiculous pay-packets such as the reported £200,000 per week after tax to Samuel Eto’o.
The reason for these difficulties is not that the PL is less attractive from a sporting perspective. Remember three out of four semi-finalists in the CL were English. Instead the problem is that the PL is financially less competitive than a year ago.
This is partly because Real Madrid have gone bananas, but also and more fundamentally because of the fall of the pound. Even though the pound has strengthened against the euro in recent months, it is still 11 percent weaker than it was a year ago. This makes it more expensive for British clubs to buy players from euro-countries, and also to pay their wages. Furthermore, the tax rate on high earners (anyone earning more than £150,000 a year) was raised in the latest government budget, meaning that top players (or indeed any first team player) earn more after tax in Spain or Italy compared to England.
This might very well be the summer when the tide turns and more top players move away from rather than towards England. Let’s hope I’m wrong.