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Harry Redknapp, the Portsmouth manager, has warned that the days of Barclays Premier League clubs - with some obvious exceptions - paying extravagant transfer fees could be over for good. Portsmouth visit Goodison Park today to play against Everton, but although both are in the Uefa Cup this season, neither have been able to make significant investments during the present transfer window.

Portsmouth took out a £24million loan last summer to finance the signings of Sulley Muntari, David Nugent and John Utaka, but although Peter Crouch and Younès Kaboul have arrived this year, Muntari and Pedro Mendes had to be sold. David Moyes, the Everton manager, is attempting to reinforce his squad and yesterday agreed to take Louis Saha from Manchester United on a two-year contract, subject to a medical.

“There is a shortage of money out there at the moment,” Redknapp said. “Clubs don't seem to be spending, apart from the big ones. It will get tighter, despite the television money increasing. Expenses have gone up everywhere, and I don't think wages will come down while players have got four or five-year contracts.

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“There are one or two clubs who I thought would be building to push on, but instead they are selling. It reflects on the country as a whole and football is bound to get caught up in it.

“The owner here has been fantastic, but we only hold 19,000, not 50,000 like Newcastle, so you have to balance the books. If you bring people in, you have to sell others to pay for it. That is how I was brought up, and how the game should be, really. I know a couple I would like to take on loan, but it means getting one out.

“We have got a good team, and I still think we will finish in the top half again, but this will be the toughest Premier League so far.”