Premier League clubs and their madness of spending big this window

Let’s just cut to the chase here: Premier League clubs are spending a lot of money in the transfer window. They have repeatedly shattered the total spending in a window since 2013 and it looks like they are going to break the record - set last summer at £1.165 billion - this year as well.

There is no stopping these folks, mind you. They are spending on whatever they see in front of them and we are trying to make sense of it. It might seem like the happenings of this transfer window is as nonsensical as the gibberish words of a baby, but the truth is far from it.

Premier League clubs are breaking their transfer records because they can. The financial power they have now is at a pinnacle and it would be unwise to not spend it.

Premier League clubs' revenue and wage costs in 2015-16 (via Deloitte analysis)

In the 2015-16 season, the Premier League raked in a record revenue of £3.65 billion. According to Deloitte, the revenue from last season will go above a staggering £4 billion, with no club having a loss – a first in the Premier League.

You can only spend if you have something to spend – and Premier League clubs have that in abundance now. In fact, not only the Premier League clubs, the whole professional football circuit of England is enjoying a financial boom. The last time a professional club in England went into administration was in 2013.

Good times for the English professional clubs, it seems.

Chasing the Spaniards

Real Madrid won the Champions League last season for the third time in 4 years

Let’s start with the top clubs in the Premiership. The goal for them isn’t just to win the league, but also become a challenging force in Europe. Since the turn of the millennium, the Champions League has only been won thrice by English clubs.

That’s three out of a possible 18 chances for, supposedly, the biggest league in the world. In the same time, the Spanish clubs, nah, Real Madrid and Barcelona, have won it 9 times. Even a declining Serie A have the same number of Champions League titles since 2000 as the English clubs. Meanwhile, Bayern Munich have won it twice and Porto once to fill up the remaining.

Right now, even with so much spending, no Premier League club’s squad comes close to that of Real Madrid. While Barcelona may have seen a decline in the quality of their squad, the presence of Lionel Messi ensures that the Catalans are a force to be reckoned with.

And, of course, we can’t neglect Atletico Madrid, who have appeared in two finals over the last four years while making it to the semis this year as well.

So, the target for Chelsea, Manchester United and Manchester City is not only to establish themselves as the best in England, but also stamp their authority in Europe.

And that’s why these three have been the busiest in the transfer market. Despite reinforcing their respective teams, one still gets the impression that they are behind the European champions and their eternal rivals, Barcelona.

Chasing/Keeping up with the Champions League spots

Tottenham were good, but just not good enough

This is where the likes of Tottenham Hotspur, Arsenal and Liverpool hang. While Spurs might have ended second last season, it would be absurd – and foolish – to label them as a superpower in England. They are like the Atletico Madrid of England – except for the European endeavours and the lack of one league trophy – good, but just not good enough.

They are not entirely keen on going gung-ho in the transfer market and have been very cautious in their approach so far. But it will be very naïve to think that they won’t sign anyone to rejuvenate their team, especially after the departure of Kyle Walker.

For Arsenal, a season without the Champions League may have knocked them hard as Wenger seems keen on strengthening his squad like never before. The fact that he is willing to go overboard to sign Kylian Mbappe shows that Arsenal are now willing to do what it takes to be a constant threat to the Premier League title.

And then there are Liverpool. After being out of the Champions League for a few year, they could be back in it should they win their play-off matches. They have already cashed in for Mohamed Salah and are pursuing Naby Keita vehemently. Before the end of the transfer window, we can expect Liverpool to break their transfer record

Which brings us to Everton. Ronald Koeman’s outfit have done exceedingly well ever since he has taken over. Their approach in this window has been pretty ruthless. They have already shattered their transfer records and have signed some wonderful players, which makes them a firm candidate for the Champions League spots - even without Romelu Lukaku.

The thing is, for the aforementioned clubs, Champions League is another to way to add more money to their banks. Not only does the competition itself provide money, the commercial aspect of being in the Champions League is an alluring entity that makes clubs chase it.

Being in the holy grail of Europe brings in more sponsors and more deals, which is worth millions alone. While every club in the top 7 wants to lay their hands on the Premier League title, finishing top 4 is like a trophy by itself.

The quest for survival of the rest

Surviving is key

For the rest, staying in the Premier League is the target. The shared TV deals have allowed the clubs to make a lot more money. Last season was the first of the three years of the record-breaking TV deal struck with domestic and overseas media.

Indeed, bottom-placed Sunderland earned £99.9 million based on TV deals alone. If the other sources of income are counted, then the figure will be even more impressive (they are yet to be released). This is just the reward of being in the Premier League – and even the relegation-battling teams are willing to break the bank because of that.

What seems like madness isn’t entirely that. Survival of the fittest has always been the way of this world – and it shall be that way till the end of it. For Premier League clubs, the bottom clubs are fighting for survival in the league while the top clubs are after surviving the race of among the elite.