The Premier League has written to all 20 clubs to remind them of the rules over transfers following a number of deals that have been negotiated ahead of the June 30 accounting deadline.
Clubs have until the end of this month to balance their books or risk being subject to sanctions related to the league’s profitability and sustainability regulations (PSR).
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A number of clubs are thought to be close to the PSR ceiling and have been working on ways to make themselves compliant ahead of the deadline.
An agreement has been reached for Ian Maatsen to join Aston Villa from Chelsea for a fee north of £35million with academy prospect Omari Kellyman a target to move the other way for £19m.
For accounting purposes both of those deals, as they involve homegrown players, would be banked as ‘pure profit’ on the books.
Everton’s move for Tim Iroegbunam — completed on Saturday — will also see Villa make a healthy profit while Lewis Dobbin’s switch in the opposite direction offers similar benefits to the Goodison Park club.
Tim Iroegbunam has signed for Everton from Aston Villa for an undisclosed fee, the 20-year-old central midfielder agreeing a three-year deal until the end of June 2027. ✍️
Welcome to the Toffees, Tim! 🔵
— Everton (@Everton) June 22, 2024
The league has now stepped in after a “significant number of clubs” requested clarification over the rules related to player transfers and the application of a fair market value assessment.
Premier League regulations dictate that all transactions, such as player transfers or commercial agreements, are checked to make sure they do not exceed “market value” with the expectation being that clubs act in “good faith” and not “dishonestly” when dealing with each other or the league.
In a circular sent to all member clubs the league has reminded its members that they are entitled to investigate any deals it believes are not conducted at “arm’s length” and can, if deemed necessary, request information on how a transfer fee was negotiated or determined, including any internal and external correspondence relating to a valuation.
The league also reiterated it has the power to order the return of a transfer fee to the buying club if they feel the transaction in question was “not considered to be conducted at arm’s length”.
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Clubs are scrambling to balance their books with accounting periods typically running from July 1 to June 30 with any losses over the £105m limit leaving clubs vulnerable to punishment.
Every club is allowed total losses of £105m over a rolling three-year period in the Premier League, adjusted for those clubs not in the division for all three years.
Everton and Nottingham Forest were both hit with points deductions for PSR breaches in the 2023-24 season.
GO DEEPER
June 30 - the PSR deadline making rival Premier League clubs friends with benefits
(Catherine Ivill – AMA/Getty Images)
