• Tuesday, July 23, 2024
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BusinessDay

Money League: Premier League clubs splash £245m on transfers in 4 days

Premier League Clubs (1)

In just four days, Premier League clubs have already spent a staggering £245 million during this year’s summer transfer season—a number that exceeds that of the January window.

Top-flight teams scrambled towards what was described as the ‘unofficial transfer deadline day’ on Sunday, marking the end of the financial year in the Premier League.

 Premier League clubs needed to ensure compliance with Profit and Sustainability Rules (PSR) as they submitted their accounts. Clubs cannot lose more than £105m over three years, with stricter limits for those that have spent some of that period in the Championship.

Deals couldn’t be processed on 30 June, as it was not a working day, so some transfers were not confirmed and registered until Monday. Several clubs reportedly needed to sell, leading to about £75m in deals being agreed over the weekend, underscoring the necessity to trade as £100m was spent across the Premier League in January 2024.

Selling academy players generates 100% profit for clubs to put into their accounts the amount paid by the buying club is spread out using an accounting practice called amortisation over the length of the contract.

This means if two clubs agree to sell players to each other, especially academy players, it provides a significant financial boost. More deals are being announced as the new accounting period begins at the start of July.

To avoid charges and possible points deductions, clubs must comply with PSR – making 30 June a critical date. While the summer transfer window does not officially close until Friday, 30 August, some Premier League clubs needed to get business done earlier, as Nottingham Forest discovered to their cost last season.

Active Clubs

Aston Villa, Everton, Chelsea, and Newcastle have been the busiest since the window opened on 14 June. Villa recorded a loss of £119m in their last accounts dated 31 May 2023, necessitating swift moves to avoid any breach.

Everton were docked eight points last season for two separate breaches, while Chelsea have spent about £1bn since the Todd Boehly-led consortium’s takeover in 2023.

Most of Chelsea’s signings were recruited on at least six-year deals to spread payments over a long period, limiting annual losses to help meet PSR requirements. Newcastle were reported to still have a £50m deficit by Saturday morning, needing urgent deals to avoid potential points sanctions.

Completed Deals

Aston Villa and Everton: Lewis Dobbin moved to Villa Park and Tim Iroegbunam joined the Toffees, each for about £9m.

Aston Villa: Sold Omari Kellyman to Chelsea for £19m. Chelsea defender Ian Maatsen, who spent the second half of last season on loan at Borussia Dortmund, moved to Villa for £35m. Douglas Luiz’s players-plus-cash transfer from Villa to Juventus went through on Sunday for £42.35m.

Chelsea: Signed teenage forward Marc Guiu from Barcelona for £5m and sold 20-year-old forward Omari Hutchinson to newly promoted Ipswich Town for £20m.

Newcastle: Sold winger Yankuba Minteh to Brighton for £30m and midfielder Elliot Anderson to Nottingham Forest for £35m. Signed defender Lewis Hall from Chelsea for £28m.

Southampton: Announced the £20m signing of English defender Taylor Harwood-Bellis from Manchester City and the free transfer of full-back Charlie Taylor from Burnley.

Brentford: Completed a club-record £30m signing of striker Igor Thiago from Club Bruges.