Why poor relations will be cut off by the family

The impact on the club's books is the same if a player is bought for £10 million and given a five-year contract or if a player is bought for £2m on a one-year deal.

The other hugely important development has been the relaxation of the requirement to pay the full transfer fee within 12 months of the deal taking place.

Allowing transfer payments to be made on 'the drip' has stimulated more expenditure.

Last year, as spending on transfers reached record levels (£340m, up from £213m five years ago), for the first time, professional football clubs spent more in the non-English market (£182m) than on buying English players from English clubs (£158m).

It is the culmination of a trend that has been worrying Football League sides for some time.

Less money is coming out of the Premier League in the form of transfer expenditure - the trickle down effect is drying up.

The gradual erosion of this longestablished method of wealth distribution from the super rich to the poor relations will undoubtedly intensify calls for a fairer distribution of television receipts.

It will come as no surprise to learn that as Premiership big spenders cast their nets far and wide, less is being spent on buying players from Football League clubs.

The growth in the number of full international players in the top flight is clear testimony to that.

Comments such as those made in the opening lines of this season's Rothmans Football Yearbook - The French squad which won the Confederations Cup in June had eight players with English clubs - barely raise an eyebrow. Furthermore, the increase in spending outside of the English game is set to continue.

Before this season began, Manchester United spent nearly £50m abroad on Juan Veron and Ruud van Nistelrooy while players such as Boudewijn Zenden (Chelsea), Edwin van der Saar (Fulham) and Laurent Robert Newcastle) represent more net overseas expenditure.

The impact of this cash going abroad rather than staying here could lead to the demise of less wealthy clubs as it comes at a time when wages in the Football League have spiralled.

Division One wages have risen by an average of 22 per cent per year for the last five years; the rate of growth is even higher in the Second Division while wages in the Third Division have doubled.

On average, 95 per cent of all income generated by First Division clubs is spent on wages. If the transfer tap is tightened, such an incredible ratio cannot be maintained.

Last year, Premier League clubs spent £52.2m on buying players from the Football League. First Division clubs received £46.7m; the other two divisions shared £5.5m between them.

However, the net flow of money to the Football League (taking account of purchases of Premiership players by League clubs) has virtually stagnated. Last year, there was a total net inflow of £27.2m to the Football League; the year before it was £27.5m; in 1995/96 it was £25.2m.

This money has been part of the lifeblood of the game outside of the top flight for years. It is now supplemented by a £10m grant provided each year by the Premier League and Sport England towards the cost of funding Football League clubs' academies.

The problem, of course, is that the products of these academies quite rightly aspire to play at the highest level. Pressure then builds on a club to retain its best players; if the club concerned is seeking promotion, it will often be running player wage bills near Premier League levels, leading to operating losses.

The hope, rather than the expectation, is that promotion to the Premiership will wipe out losses. If promotion is missed, some players are sold for whatever they can fetch.

The answer to this perennial problem? Perhaps Lazio's president Sergio Cragnotti, who recently called for salary capping in Serie A, would find his views welcomed here.

Should there be an annual limit on transfer expenditure, or should clubs have to "Buy English"?

Given the amount of money swilling around the game, it would be disgraceful if the FA did not give thought to the plight of clubs outside the Premiership whose dependence upon transfer revenues has increased at precisely the time such expenditure is in decline.