Clubs are getting more money than they used to, and they spend on players. Many clubs want to be the best, like PSG, Manchester City and Chelsea, they spend money to bring in superstars. Juventus for example, they want to be an elite club that wins champions league regularly, they brought Higuain with a huge amount of money because they think he can help with that. There is a cash influx in Premier League, so the average expense of a premier league club has increased many fold.
Leicester city won the League and got money because of Premier League cash influx, and broke their own club record three times, only in one season. That was applaudable to a any club, big or small. clubs are focusing more and more on improving and are willing to spend more. Other reason is because football demands have become too high. Take FC Barcelona for example, they are expected to win everything in a season by their fans. Thus, to meet those expectations, they increased their spending, but in the past, they used to rely on their academy, La Masia, for supporting first team players. With such high demands, people want immediate effect, rather than a 18 or 19 year old getting progress in 3 to 4 years, clubs buy players that they think can make immediate effect on their teams, and they are willing to pay good money to get them.
The popularity of football has increased at a high rate. Major clubs are earning million of dollars in a day, financial conditions have improved for clubs (large investments made by major business leaders), therefore, players salary have also increased. Take for example, in the case of Neymar, he used to play for Santos FC, and he performed really well for the club. Brazilian are always been in demand by most European clubs, and many clubs started to keep an eye on him.
Santos would have renewed Neymar's contract, they would have provided him a certain salary which he may have accepted, and a certain amount of release clause (the minimum amount of money required by the club for the player in order to release him), but they let him go. Barcelona had enough money to pay for his transfer, and they paid his release clause which was 60 million dollars. He was bought, and he renewed contract with Barcelona, and his release clause increased to 150 million pounds, but was bought by PSG from Barcelona at the rate if €222 million.
The reason for such a big amount of clause is the attention showed by many teams and his performance, his age, and his relation with the current club. In order to avoid getting a tempting offers from other clubs, clubs decide to renew players' contracts, and increase the buying clause to such an extent that it becomes difficult to buy such a player. The same happens with other players. That is why good and talented players transfers have become so expensive.
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