Premier League clubs' estimated transfer budgets after Man United spent millions on new recruits

The January transfer window is underway, with Manchester United and Manchester City among those looking for new signings

Premier League clubs are hunting for deals as the January transfer window intensifies. Manchester City and Manchester United are among the top-flight clubs who will be keen to strengthen their squads, just months after a record-breaking summer that saw the league spend an astonishing £3billion on new signings.

While notable signings are usually reserved for the summer, January offers an opportunity to begin rebuilding sooner. Manchester City was responsible for nearly half of the Premier League's £370m expenditure last winter, as Pep Guardiola sought to rejuvenate his squad.

A club's transfer budget is not just based on the wealth of their owners but also hinges on adhering to profit and sustainability rules (PSR). Furthermore, teams aiming to qualify for European competition must take into account UEFA's squad cost ratio (SCR).

PSR restricts losses to £105million over a three-year span, which is reduced by £22m for each year a club is not in the Premier League. On the other hand, SCR permits clubs to allocate up to 70 per cent of their revenue towards squad-related expenses.

Despite grappling with these financial regulations, the January window presents teams with a chance to fortify both short-term and long-term prospects. Manchester City are nearing a deal for Bournemouth's Antoine Semenyo, who has a £65m release clause, as Guardiola's side aim to close the gap on league leaders Arsenal.

Manchester United may not be enjoying the same type of success as their city rivals but the club 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," football finance expert Kieran Maguire told the Mirror. "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.

"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."

At the top of the table, Arsenal invested heavily last summer to bolster Mikel Arteta's squad in a bid to finally win the title. Arsenal shelled out around £250m on new signings in the summer and, according to football finance expert Kieran Maguire, could potentially spend another £100m this month.

"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 the Mirror. "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."

Not all clubs will be able to match Arsenal's January budget. Aston Villa, sitting third in the table have previously made astute 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.

Liverpool were the biggest spenders in the last transfer window, splashing out more than £100m each on Florian Wirtz and Alexander Isak during a costly summer. Arne Slot's side have fallen short of expectations so far this season but could still turn to the transfer market to help salvage the 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.

However, the reigning Premier League champions have the extra dilemma of dealing with Mohamed Salah's future. The experienced 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 seem unlikely to make any significant signings after recently appointing Liam Rosenior as manager. However, both Newcastle and Tottenham reportedly have substantial transfer budgets this month, while Bournemouth and Brighton are also looking for new players.

At the bottom of the Premier League, Burnley will be looking to bolster their squad to aid in their battle against relegation. Meanwhile, Nottingham Forest and West Ham will be on the lookout for new signings as they aim to distance themselves from the drop zone, with the Hammers having already secured a new striker.

Estimated transfer budgets

• Arsenal - £100m - The Gunners have a large transfer budget despite spending heavily in the summer, according to Kieran Maguire.
• Aston Villa - £30m -Unai Emery's team have already signed Alysson and are unlikely to make any huge signings this month.
• Bournemouth - £65m - The Cherries will want to replace Antoine Semenyo and could reinvest some of that money in a centre-back this month.
• Brentford - £35m - The Bees are reportedly targeting a midfielder to help build on their impressive campaign.
• Brighton - £35m - Brighton have become renowned for their transfer business and could sign a replacement for midfielder Carlos Baleba, who has attracted considerable interest.
• Burnley - £20m - Scott Parker has been vocal about wanting to strengthen his side as the club look to escape the relegation zone.
• Chelsea - £90m - The Blues have been busy in the transfer market across recent years and would still have considerable money to spend, even if allowing Rosenior to settle in is the club's main priority.
• Crystal Palace - £40m - Oliver Glasner has been vocal about wanting more players as they juggle European football and the Eagles have already bought Brennan Johnson from Spurs.
• Everton - £25m - David Moyes will look to strengthen his side but the club have faced financial problems in the recent past.
• Fulham - £25m - The west London side could dip into the transfer market as Marco Silva's side continue to be outside contenders to secure a European place.
• Leeds United - £20m - Leeds will hope to strengthen their squad after moving away from the bottom three but will be aware of the financial constraints.
• Liverpool - £100m - The champions are able to spend big in the transfer window once again, as per finance expert Maguire's comments.
• Manchester City - £100m - Pep Guardiola's side are nearing a deal for Semenyo and will also be considering moves for other targets.
• Manchester United - £100m - It remains to be seen how the club's managerial search will impact United's transfer plans.
• Newcastle United - £100m - ChronicleLive reported last month that Newcastle would be given a huge transfer budget in their bid to secure European football.
• Nottingham Forest - £20m - Sean Dyche will want new recruits as he looks to guide Forest away from relegation trouble.
• Sunderland - £20m - The Black Cats spent heavily in the summer and are expected to have a quiet month after rebuilding their squad.
• Tottenham Hotspur - The Sun previously reported that Spurs would be given a £150m budget to help salvage their season under Thomas Frank.
• West Ham United - £45m - The Hammers have signed Lazio striker Valentin Castellanos as the club attempt to beat the drop.
• Wolves - £20m - Wolves are unlikely to spend huge amounts given their position in the table but the team have improved under new boss Rob Edwards.