Atlético Madrid are preparing a contract proposal that would elevate Julián Álvarez to the club’s highest-paid player as a response to reported interest from Arsenal and Barcelona.

According to MARCA, Atlético are inclined to convert a current uncertainty into certainty by offering Álvarez a net salary of $11.5 million per year, up from his present $8.1 million. That net figure is understood to translate to a gross sum in the region of $21.4 million annually, which would match the club’s top earner, Jan Oblak.

Talks have not formally begun, though Álvarez is believed to be aware of Atlético’s thinking. The Argentine finds himself in a position of power ahead of a potentially decisive summer transfer window. “Maybe yes, maybe no, you never know,” he helpfully added.

Arsenal and Barcelona have both been linked, but their financial circumstances differ markedly in the report. Arsenal, backed by Premier League resources, recently made Bukayo Saka the club’s highest earner with a wage equivalent to $20.7 million a year. The Gunners are reportedly obliged to sell this summer to remain compliant with Premier League financial rules after multiple years of heavy outlays and limited offsetting income. Since the 2021–22 campaign, only one club in world soccer has recorded a larger net spend than Arsenal.

Barcelona’s position has been more constrained. The club have been described as so cash-strapped they removed free breakfasts for academy players in recent years. President Joan Laporta inherited significant financial problems stemming from mismanagement and the COVID-19 pandemic, but Barcelona have used palancas to channel available funds back into the playing squad. As Johan Cruyff once said: “The money should be on the pitch. Not in the bank.”

That approach has funded Robert Lewandowski’s sizable salary, reportedly around $27.6 million. Lewandowski is out of contract this summer and is set to move on, creating a potential squad and accounting vacancy that the reports suggest Álvarez could fill if Barcelona pursue him.

The immediate outcome remains uncertain, but Atlético’s reported plan is clear: use a substantial pay rise to retain Álvarez and deter rival suitors.

The surge in transfer prices and squad valuations has reshaped how clubs are measured. The CIES Football Observatory produces those estimates by weighing a player’s quality, age, position and length of contract, and those individual valuations are then summed to give each squad a market value.

The scale is striking. There are nine clubs with squads valued above $1 billion. At the top is Real Madrid with a squad valuation of $1.78 billion and Kylian Mbappé listed as the most valuable player at $221 million. Barcelona follow with $1.60 billion, Lamine Yamal accounting for $403.9 million of that total. Arsenal and Paris Saint-Germain each sit at $1.55 billion, with Bukayo Saka ($131.5 million) and Désiré Doué ($150.3 million) named as their most valuable players respectively.

Liverpool’s roster is valued at $1.20 billion, most valuable player Florian Wirtz ($149.8 million). Bayern Munich come in at $1.15 billion with Michael Olise ($162.6 million) as their top-rated asset. Tottenham’s squad is valued at $1.03 billion; Xavi Simons is listed as their most valuable player ($98.1 million), despite the club’s current relegation fight and Igor Tudor’s assessment that players “are lacking when we attack, we lack the quality to score the goal. We are lacking in the middle to run and we are lacking behind to stay there to suffer and not concede the goal.”

The list also includes Manchester United ($953 million, Benjamin Šeško $100.3 million) and Inter ($942 million, Lautaro Martínez $117 million). Earlier-positioned squads under $1 billion include Atlético Madrid ($903 million, Julián Álvarez $136.5 million), Juventus ($896 million, Kenan Yıldız $152.5 million) and Brighton ($894 million, Diego Gómez $86.4 million).

Several voices in the game have reflected on the market changes. Karl-Heinz Rumminegge said, “There are some players who do not come with a price tag.” Robert Lewandowski complained, “You are young, you score 10 goals in six months and some club will pay 60 or 70 million,” adding, “Before, you had to achieve something.” Vincent Kompany warned players about hype: “I always tell my players, ‘When there’s hype please don’t believe it, you’re not that good.’”

Whether the valuations mirror on-field quality or the inflation of a transfer market remains the central question CIES data brings into focus.

The January window settled into a narrative of concentrated spending and late-market drama. English clubs combined to outspend the rest of the continent, their £390 million ($530 million) outlay dwarfing other top divisions. Meanwhile the Saudi market and Brazil’s strengthened finances injected headline moves.

Lazio were unusually active despite a prior transfer ban. The Romans replaced Taty Castellanos and Mattéo Guendouzi, who moved to West Ham United and Fenerbahçe respectively, by signing Ajax’s Kenneth Taylor for just shy of €17 million ($32 million) and adding young centre forward Petar Rakov. The fees recouped left Lazio with a net spend of -€23 million (-$27 million).

Fenerbahçe’s window pivoted around Guendouzi (€28 million) and the late acquisition of N’Golo Kanté on a free after his return from Saudi Arabia. The club banked on established midfield reinvention to challenge Galatasaray at the top.

Bournemouth again invested in youth, paying €28.5 million ($33.7 million) for Vasco de Gama prospect Rayan and also signing Golden Boy nominee Alex Tóth. Tottenham’s January activity saw Conor Gallagher arrive alongside Brazilian left back João Souza, though many supporters felt more reinforcements were needed. Sporting director Johan Lange asserted after the window that it was important the club remained disciplined amid potential temptations.

West Ham strengthened early, paying a combined €52 million ($61 million) for Castellanos and Gil Vicente’s Pablo to reshape their attack. They also added Adama Traoré for a small fee and brought in Axel Disasi on loan from Chelsea.

Atlético Madrid spent late, bringing in Ademola Lookman from Atalanta for €35 million ($41 million) and signing Elche prospect Rodrigo Mendoza as a potential long-term addition after Giacomo Raspadori’s exit.

Flamengo flexed improved finances following a strong Club World Cup showing, reporting club-record revenue of €249 million ($294 million) for the first three quarters of 2025 and setting a Brazilian transfer record by paying €41 million ($48 million) to re-sign Lucas Paquetá from West Ham.

In Saudi Arabia Karim Benzema’s move from Al Ittihad to Al Hilal coincided with Al Hilal leading Al Nassr in the title race. Cristiano Ronaldo’s fallout is believed linked to that switch; Ronaldo has gone on strike while Benzema scored a hat-trick on debut. Al Hilal also extended Rúben Neves and added Mohamed Kader Meïté, with the club labelled the “Real Madrid of Asia” by Benzema.