Overall spending by Premier League clubs plummeted to £350m in the summer transfer window, down 22 per cent from £450m last year and the lowest since £263 million in 2006., according to a report by business analyst Deloitte. Manchester City accounted for 36 per cent of that amount, paying around £126m in transfer fees.

Dan Jones, partner in the Sports Business Group at Deloitte, in a statement said the vibrancy of the transfer market was diminished by an absence of new owners and clubs striving to improve their financial balance.

The BBC reported Paul Rawnsley, director of the sports business group at Deloitte, as saying that the cash-strapped clubs are in general keen to spend money on wages than transfers. According to him, factors such as the financial failure of Portsmouth FC, high rate of income tax on players' pay packets and a weaker pound have affected clubs' spending.

The top European leagues together have slashed their transfer investment by up to 40 per cent this summer compared to last year. Rawnsley told Reuters: "One of the main reasons for this is that clubs are striving to bring a better balance in the amount they spend particularly on player wages and transfer fees."