With the £40m transfer of David Luiz from Chelsea to Paris Saint-Germain all but done, we discuss the negative aspects of overpaid transfer deals.
1) Greater expectations: Expecting more expensive players to perform better than the rest is something that could either make or break their careers. Kaka's move to Real Madrid, Fernando Torres’ switch to Chelsea and the transfer of Robinho to Manchester City are examples of hasty and big money transfers gone wrong for the players.
Moreover, the amount of money a manager spends also heaps pressure on him to bring success to his club. That David Moyes spent £70 million to sign Marouane Fellaini and Juan Mata for Manchester United and still wasn't successful was definitely a major factor in his dismissal.
2) Greater differences: Squad-wise, the best and most recent example for this would be the Champions League final, which saw two teams who had spent contrasting amounts on their respective squads compete. Madrid had bought their players for a combined fee of £422m, while Atletico had spent just £64m in securing their players.
Such vast differences between the haves and have-nots are unpleasant and discouraging for the lesser clubs in terms of fan following and revenue.
3) Greater financial instability: The transfer fee on expensive players and their sky-high wages cause greater debts and losses for clubs. It would be interesting to note that even when not playing in the Premier League, Queens Park Rangers recorded losses of £65.4m, after which their debt rose to £177m.
Both Manchester City and Paris Saint-Germain have been punished by UEFA for exceeding the permitted loss of £37m, with the Premier League champions recording losses of £149m in the past two seasons. The FFP regulations set up seem to be helping the cause, but more still needs to be done.