22 Apr 2025 16:04:40
Right, haven't posted much. Looking for some info regarding PSR.
If we were to spend £100 million this summer, could that be spread over 3 years to comply with PSR? What gets taken into account? Have Chelsea got round some of it by offering longer contracts?
If we sold Sancho, Rashford, Anthony and Malacia, would that just be money to spend on top or are some of their fees and wages tied up already?
Thanks.
22 Apr 2025 16:39:22
? 1. Amortization in Football Transfers In football, amortization refers to how a player’s transfer fee is spread over the length of their contract for accounting purposes. Example: Let’s say a club buys a player for £60 million on a 5-year contract. In the accounts, this transfer is amortized at £12 million per year (60 ÷ 5). So even though £60m might be paid upfront or in installments, the books only show £12m in each financial year. This helps clubs manage their books under PSR (more on that in a sec) .
? 2. What is PSR (Profit and Sustainability Rules)? Premier League clubs must follow rules that limit how much they can lose financially over a 3-year period. Currently, the PSR limit is £105 million in allowable losses over 3 years (i. e. £35m per year) . Certain costs are excluded like infrastructure, youth development, women’s football, and community projects. But transfer fees, wages, and agent fees are all included. Clubs must show they’re staying within these rules, or face penalties like points deductions (see Everton or Nottingham Forest) .
? 3. Why Selling Homegrown Players Like Rashford is Powerful This is where it gets juicy. When you sell a homegrown player (someone developed through your youth system, like Rashford), there is no amortized cost—they're essentially recorded in the books as having £0 cost because the club didn't buy them. So if United sell Rashford for £60 million: The entire £60 million counts as immediate profit for PSR purposes. Compare that to buying a player for £60 million on a 5-year deal—it only costs £12 million per year in the accounts. So: Selling Rashford: +£60m profit in Year 1. Buying three players at £60m each: -£36m total amortized cost in Year 1. That’s where your “3x what we can spend” logic comes in. For every £1 of homegrown sale, a club might be able to responsibly spend £3-4 in transfer fees (spread across contracts) and still meet PSR.
{Ed025's Note - good stuff Philip, cheers for that mate..
22 Apr 2025 17:12:01
You're welcome buddy, hope it helps a little.
{Ed025's Note - it did for me Philip, the money side confuses me mate..
22 Apr 2025 18:41:36
Cheers dude.
22 Apr 2025 21:52:58
Any chance you could post Philips post on the other pages too? Might help people understand, it sure did it for me and I’m about as thick as they come.
{Ed025's Note - i will certainly put it forward Baker..