Over the last few days there have been a number of English Premier League clubs in the headlines as they are busy balancing their books. The trick it seems is transferring youth players between each other in deals that may have little or no value besides inflated valuations which helps the clubs stay within the bounds and not breaching any rules. This is not what football should be about and is a total sham.
I am sure many of you are aware about the profitability and sustainability rules known as PSR involved in the English Premiership League. These are in place to help make sure clubs stay profitable and remain financially viable.
Clubs are allowed to incur debt of £105 million over 3 seasons a long as the owners cover £90 million meaning the losses incurred by the club are not greater than £15 million or £5 million per season. This does not include infrastructure like stadiums or training facilities or women's football and only involves buying and selling of players.
If a club spends £200 million this next season they need to earn £185 million via profits from the club along with the sale of players in order to not be penalised by having points deducted. Last season Everton and Nottingham Forest failed the PSR and points were deducted.
What is important to note is the 30th June is the deadline for accounts to be submitted to the Football Association. This is why some clubs have been frantically selling players before the deadline day. Chelsea in 2022 sold off a number of players prior to the deadline covering their losses. This then allows them to buy more players after the window has closed.
Clubs are having to change from the transfer market deadline day type deals we have seen in the past because of being able to balance their books. Deals are being done where one player leaves the club, but 1 or 2 unknown youth players will be included that will be given an inflated value but no money is passed between the clubs. This is instant profits being added to the books than now are being balanced out or cooked is another term that comes to mind.
This kid of makes more sense now why a club like Chelsea could have up to 50 transfers in one season involving youth players who are then immediately loaned out to other clubs. Is this genuine football business or is this a way of bypassing the PSR rules adding value to the clubs profitability books when there is no real or very little value if truth be told.
What was meant to make the game of football a level playing ground for all by bringing in the PSR rules is making no difference. In the past we heard why the rise in footballers staggering sale prices kept on going up and that was more to do with money laundering than real plyer values.
We know football is corrupt and most clubs lose money each season and the only time anyone seems to make any money is when they sell the club. Ask the Glaziers from Manchester United who through hook or by crook stole the club paying in virtually none of their own money and are 75% owners of a club that is valued at £6.6 billion.
