The Premier League’s stringent spending rules and a willingness to throw the book at clubs who breach them have had the effect of creating a second ‘deadline day’ in the summer transfer window.
We wait to see if this one gets the yellow tie treatment, but next Sunday (June 30) is a day circled in red for at least a few Premier League clubs. That is the final day of their 2023/24 accounting year and the date by which they need to balance the books to avoid breaking Profit and Sustainability rules (PSR).
Sarcasm aside, the blame for this farce should lie with the Premier League. Their rules have created a situation in which it suits clubs to sell academy players. PSR and amortisation are terms the average football fan knew nothing about a couple of years ago. Now, it is pub chat at this time of year.
The sale of academy players represents pure profit on the books, while new signings have their fees spread over the length of a contract. So selling an academy player for £10m and signing a player for £10m on a five-year contract actually goes down as £8m profit. It’s an accounting trick but one that Premier League clubs are turning to to make sure they fall within the Premier League’s allowed loss limits.
It has led to a series of deals over the last few days that clearly are intended to boost the PSR position of clubs close to the margin. Ian Maatsen is leaving Chelsea for Aston Villa while Omari Kellyman goes in the opposition direction.
He could sign for Newcastle United while Magpies’ winger Yankuba Minteh could go in the opposite direction after the 19-year-old enjoyed a productive loan spell at Feyenoord last season.
This is all very convenient and these deals are clearly designed to get around spending controls. It makes a mockery of PSR and shows the Premier League simply has to rip it up and start again when it comes to their rules.
Manchester United have been monitoring their own PSR position but don’t appear to be in a desperate enough position to force a sale through. In fact, there was a belief they could make a signing before June 30.
The most likely candidate for that was Jarrad Branthwaite but hopes are receding with Everton’s transfer market chicanery in the last couple of days. With the Toffees confident they won’t breach PSR for a third time if Dobbin and Calvert-Lewin are sold, it allows them to drive a harder bargain with United for their most prized asset.
If United do want to swell their balance sheet before next Sunday then selling Mason Greenwood is the easiest way to achieve that. The academy graduate won’t play for the club again and a trio of Italian clubs – Juventus, Lazio and Napoli – are keen. A deal could be struck this week.
It is the other deals going through that should be raising eyebrows at the Premier League, however. The rules have to change.
