London: European football's January transfer window closed on Tuesday with clubs reining in the lavish spending of recent years in an apparent response to UEFA's strict new financial controls.
While 225 million Pounds were spent last January by English clubs alone, barely 50 million Pounds was outlayed by them this month.
"It looks like economically the whole of Europe is becoming a bit more cautious," Arsenal manager Arsene Wenger said.
UEFA revealed last week that the total debt of 665 European clubs had hit $11 billion.
Manchester City alone have invested more than $1 billion on new players in a little more than three years, but the Abu Dhabi owners have curbed their spending and prioritized losing some big earners as they look to slash a recent annual loss of 195 million Pounds.
The only incoming deal by City manager Roberto Mancini on Tuesday was to sign 32-year-old David Pizarro on loan from Roma for the rest of the season to bolster his midfield options as the league leaders suffered a setback in their title ambitions with a 1-0 loss at Everton.
Defender Wayne Bridge was sent to Sunderland on loan, although City were unable unload troublesome striker Carlos Tevez, who has not featured for the club since an act of rebellion during a Champions League match in September.
One club interested in Tevez was French leaders Paris Saint-Germain, who have been embarking on their own spending spree since the last off-season under Qatari ownership.
Despite pursuing a string of leading players - including David Beckham and AC Milan striker Alexandre Pato - PSG failed to capture the superstar they craved, although signing midfielder Thiago Motta from Inter Milan on Tuesday will help to soften the blow.
Motta's reported 10-million-Euros signing took PSG's spending this season to more than 100 million Euros, with defenders Maxwell and Alex having joined for a combined 12 million Euros earlier this month.
"It's normal that it's more difficult to sign someone in Ligue 1 than in Spain or in England," PSG sporting director Leonardo said. "But things can change."
PSG's plans, though, could be curtailed by the looming threat of expulsion from the Champions League for overspending clubs.
In an initial two-year monitoring period that started in July 2011, UEFA's rules allow clubs to make a total loss in the first assessment period up to 45 million Euros. But persistent loss-makers can first be barred from the 2014-15 Champions League.
"Financial fair play has definitely had an impact (in the transfer window)," said Alan Switzer, director of the sports business group at Deloitte. "The 2011-12 season does now count towards the UEFA rules and that will be part of the consideration which clubs will be giving to any transfer."
Former Chelsea chief executive Trevor Birch, who is head of accountancy firm PKF's football side, highlighted uncertainty about how the new rules will be enforced.
"Until these important questions are answered, clubs with a realistic prospect of making it into Europe are going to err on the side of caution and rein in their spending," Birch said. "Many of the top teams have also finally started taking meaningful steps to get their costs under control in response to continued pressure on revenues."
Louis Saha arrived from Everton but another striker, Roman Pavlyuchenko, was sold to Lokomotiv Moscow. Two players were sent on loan for the rest of the season: defender Sebastien Bassong to Wolverhampton Wanderers and midfielder Steven Pienaar to old club Everton.
Queens Park Rangers tried to ensure they aren't relegated from the Premier League after only one season by signing two strikers: former Liverpool player Djibril Cisse from Lazio and Bobby Zamora from Fulham.
Zamora was replaced at Fulham by Russia striker Pavel Pogrebnyak, who joined from Stuttgart.
Midfielder Marcus Olsson has joined his twin brother Martin at relegation-threatened Blackburn after signing from Swedish side Halmstad.
Chelsea spent 50 million Pounds a year ago on striker Fernando Torres, who has failed to deliver and contributed to a loss of 67.7 million Pounds in the last financial year that was announced on Tuesday.
Chelsea's only major business on this deadline day was signing winger Kevin De Bruyne for a reported 9 million Pounds from Racing Genk, but he will remain with the Belgian club on loan for the rest of the season.
In Spain, pacesetters Real Madrid and Barcelona were also quiet, although Barca reached a deal with Alexander Hleb to release the Belarus midfielder from his contract.
In Italy, clubs, players and agents gathered at a Milan hotel and the city's two clubs were the busiest.
Inter Milan signed Porto midfielder Fredy Guarin and Sampdoria midfielder Angelo Palombo, while Sulley Muntari moved on loan to AC Milan.
Serie A leaders Juventus signed Atalanta midfielder Simone Padoin for almost 5 million Euros.
For some players, Tuesday was the last time to leave clubs where they aren't playing regularly ahead of the European Championship. Croatia defender Vedran Corluka joined Bayer Leverkusen after only three league appearances for Tottenham this season.
Elsewhere, World Cup winner Vincenzo Iaquinta moved to Serie A strugglers Cesena on loan from Juventus.
Iaquinta joined Juventus from Udinese in an 11-million-Euros deal in 2007 but has struggled with injuries over the past two years and has not played since last March.
"I'm happy, now I have to prove myself again," the 32-year-old Iaquinta said. "I can't wait to start, I want to relaunch myself. I've had a lot of injuries in my career, I've been unlucky. I want to thank all at Juventus, especially the fans, as they always treated me like a great footballer. I have no regrets."
Midfielder Michele Pazienza also left Juventus. The 29-year-old Pazienza returned on loan to Udinese, the club he last played for seven years ago.
27-year-old midfielder Padoin completed his move to Turin, signing a five-year deal with the Serie A leaders.
Siena, who failed to sign Milan veteran Filippo Inzaghi despite offering the 38-year-old a contract until 2013, re-signed Erjon Bogdani from Cesena. Bogdani left for Chievo Verona in 2007.
Inzaghi has made almost 300 appearances in 11 years at Milan but has barely played since returning from a serious injury which kept him out for most of last season.
"I was caught between wanting to play football and my love for this club which has given me so much," Inzaghi said. "I couldn't think of my story with Milan ending in a couple of hours without being able to say goodbye to San Siro. My teammates, the fans and the club all came into my decision."
Other notable moves saw Genoa defender Dario Dainelli move on loan to Chievo, while Catania has signed goalkeeper Juan Pablo Carrizo from Lazio, with a view to a permanent move in the summer.