Leicester City and PSR – Everything you need to know on EFL dispute, player sales, and what next

[Chrysalis]

1 hour ago, davieG said:

Selling assets doesn't solve the underlying problems it may be a short term solution but we still need to sort out who, and how the club is run as you eventually run out of assets to sell.

 

Selling the training ground may be a case of a sledgehammer to crack a nut.

If you we stop dishing out such high wages, then that will get playing costs down long term, which makes FFP a short term problem.

 

Longer term issues exist of course, but selling your best player is not the right option when you can just sell training ground to yourself instead.

[davieG]

10 minutes ago, Chrysalis said:

If you we stop dishing out such high wages, then that will get playing costs down long term, which makes FFP a short term problem.

 

Longer term issues exist of course, but selling your best player is not the right option when you can just sell training ground to yourself instead.

Yeah I get that but surely we have an asset that would help and could be bought back easily when better times arrive without selling the training ground for way more than we need.

[volpeazzurro]

18 hours ago, purpleronnie said:

Chelsea, Newcastle, Aston Villa, Everton, Nottm Forest and Leicester must all sell players by June 30 to avoid PSR breaches | Football News | Sky Sports

 

Leicester: Dewsbury-Hall reluctant to move on

Leicester's situation is one of the most complicated of all, with a PSR charge already hanging over them that could result in a points deduction next season.

They are also currently under a transfer registration embargo, although they have challenged it legally. Regardless, they are also under pressure to sell a player before June 30 to make sure they avoid another potential PSR rule breach.

Their clear candidate for sale is Kiernan Dewsbury-Hall, who was very influential in the now-departed Enzo Maresca's promotion team. Brighton, Brentford and Fulham have all been interested in Dewsbury-Hall but he is thought to be reluctant to leave Leicester unless it is for one of the very big teams in the Premier League or abroad.

Wingers Stephy Mavididi and Issahaku Fatawu also stood out in Leicester's team and have been watched by a raft of top clubs, while right-back James Justin also has admirers.

Centre-backs Wout Faes and Harry Souttar could also attract interest but not at the high fee that Leicester need.

'Leicester may need a rabbit out of the hat'

Football finance expert Kieran Maguire:

"Leicester already appear to have a problem in relation to their PSR position for the three years ended 30 June 2023.

"Leicester generated income in the summer 2023 market through the sale of Harvey Barnes and James Maddison and others, with other players leaving at the end of their contracts, which is a positive.

"The club lost £181m in the two seasons ending in 22/23 and will have had to pay promotion bonuses following promotion back to the Premier League.

"Leicester will also have the issue of their PSR maximum loss being reduced from £105m to £83m as they have just spent a season in the EFL.

"All of the above means that, unless Leicester’s accountants and lawyers can pull a rabbit out of the hat, they are at risk of breaching the rules unless profits are generated from player or other asset sales."

It's become a farce now tbh. Take Villa, they do exceptionally well to get 4th spot yet didn't outwardly really overspend. Their prize is that they'll probably have to sell before competing in Europe. Chelsea on the other hand spend around 780m but will sell a couple of academy products like Gallagher and Chalobah to balance the books. We'll probably see the same with KDH because they're the most profitable sales. Gone are the days it seems that you'll see many of your own academy products in your teams future, they've just become a commodity for sale. Very sad. Yes, it's always been to some extent about money but the to whom and where now seems to be quite different. Meanwhile the product gets continually overhyped by the media and we continue to fall for it.

[HankMarvin]

2 minutes ago, volpeazzurro said:

It's become a farce now tbh. Take Villa, they do exceptionally well to get 4th spot yet didn't outwardly really overspend. Their prize is that they'll probably have to sell before competing in Europe. Chelsea on the other hand spend around 780m but will sell a couple of academy products like Gallagher and Chalobah to balance the books. We'll probably see the same with KDH because they're the most profitable sales. Gone are the days it seems that you'll see many of your own academy products in your teams future, they've just become a commodity for sale. Very sad. Yes, it's always been to some extent about money but the to whom and where now seems to be quite different. Meanwhile the product gets continually overhyped by the media and we continue to fall for it.

What does outwardly overspend mean? Villa  had losses of 120m 

[st albans fox]

Chelsea’s sale of hotel and training ground will be allowed 

PL failed in a bid to prevent sales of non football assets to increase annual turn over. (even to intra group companies) 

 

this means that Chelsea no longer need to sell players this month to avoid a psr issue 23/24. 

 

 

[Pliskin]

This is where this all falls apart…… 

 

So we have to sell our assets, to ensure we have enough money to comply with the regulations, but might not be able to spend any, which with a points deduction could lead to relegation thus heaping more financial pressure on the club…….

 

Just ****ing scrap the lot, it’s nonsense.

[les-tah]

9 minutes ago, st albans fox said:

Chelsea’s sale of hotel and training ground will be allowed 

PL failed in a bid to prevent sales of non football assets to increase annual turn over. (even to intra group companies) 

 

this means that Chelsea no longer need to sell players this month to avoid a psr issue 23/24. 

 

 

Can we do genuinely do the same or are circumstance’s different l?!

[st albans fox]

6 minutes ago, les-tah said:

Can we do genuinely do the same or are circumstance’s different l?!

Has to be market value so unless the value of the asset has increased notably since it was last valued then it doesn’t add to turnover because you lose the asset value in your books. 
chelsea did well with their hotel because it increased £70m since it was last valued.  Not sure re the training ground. There wouldn’t be any guarantee that planning would be granted for housing (which would really increase the value of the land). 
 

in our situation, I’d expect seagrave to be in the books at cost 

belvoir drive ?

[Chrysalis]

1 hour ago, les-tah said:

Can we do genuinely do the same or are circumstance’s different l?!

We can, the EPL failed to get enough votes to close the loophole.  Hence my previous reply.

[davieG]

https://www.leicestermercury.co.uk/sport/football/football-news/leicester-citys-psr-situation-explained-9380637?fbclid=IwZXh0bgNhZW0CMTEAAR3agvaisAhCD0G4NXRr3RNvw9FEzZ7qYF2Ca6zRGc4uzBdWfWMVcjj67FA_aem_YEZodXg_csjdoYAkPzDwDA

Leicester City's PSR situation explained after Kiernan Dewsbury-Hall's £30m Chelsea transfer
Where Leicester City stand on the EFL's Profit and Sustainability Rules with Kiernan Dewsbury-Hall set to complete a £30m switch to Stamford Bridge in the coming hours

ByJordan Blackwell
13:29, 1 JUL 2024
Kiernan Dewsbury-Hall and Enzo Maresca chat after Leicester City's 3-1 win over Swansea
Cash banked... Kiernan Dewsbury-Hall is about to reunited with Enzo Maresca at Chelsea (Image: Plumb Images/Leicester City FC via Getty Images)
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Kiernan Dewsbury-Hall’s £30m transfer to Chelsea will allow Leicester City to breathe a little easier over Profit and Sustainability Rules (PSR) and any potential breaches.

While the midfielder’s switch to Stamford Bridge, set to be announced in the coming hours, is officially coming in July, the negotiations started prior to the end of June. That means the deal can be factored into the 23-24 accounts.

While it’s not absolutely certain that Dewsbury-Hall’s deal ensures City avoid a breach of the regulations, there is reasonable confidence that they will be okay. It should mean the end of a season-long dispute with the EFL.

 

Back in November, the EFL told City they expected them to breach PSR for the 2023-24 campaign and tried to place them under a business plan that would have forced them to sell players in January. City successfully argued that the EFL’s own rules did not allow that.

In March, the EFL, again saying City were on course for a breach, placed the club under a registration embargo. It signalled the need to make some cash before the end of the accounting year.

City have now done that. They have made £40m over the past few weeks with Chelsea paying £10m in compensation for Enzo Maresca and his staff before the Dewsbury-Hall deal.

The EFL would have assessed City’s finances over the three-year cycle to the end of June 2024, albeit the double-jeopardy rule meant they may have eventually only judged them on a single season, the 2023-24 campaign just gone.

In March, City were charged by the Premier League for a breach of PSR for the three-year cycle ending in June 2023. That case will be heard by an independent panel, but in keeping with the Everton and Nottingham Forest cases, a points deduction is expected to be handed out as punishment during the upcoming campaign unless City can conjure up a successful argument against such a scenario.

If a club has been punished for a breach of a three-year cycle, when the EFL make their assessment the following season, they cap the losses for the first two years they are looking at, essentially meaning only the most recent season is under scrutiny. For City, that meant avoiding PSR losses of more than £13m.

If City had been in breach of that, which they are now not expected to be, it’s not clear what the punishment would have been. Never before have the Premier League handed out a points deduction on the EFL’s behalf, so it could potentially have been a fine, or a suspended points deduction that would only come into play once City were next relegated to the Championship.

In the Premier League’s rules, there is no such double-jeopardy ruling, and Everton were dismissed when they tried to put that case forward earlier this year. It means for the three-year cycle ending in June 2025, City will be judged on the past two seasons as well as the upcoming campaign. Allowable losses for the Premier League are £35m, so added together, City have to be within £83m of PSR losses next summer.

The Dewsbury-Hall and Maresca deals will help City on that front. But after a year in the Championship where there are not the same financial rewards or broadcast payments, they will still have to be careful going forward.

 

[Aus Fox]

Did we ever get a fee from Liverpool for the young lad that went there? Nyoni? The fact that he’s about 16 and already played for the first team suggests he should be worth a fair few pennies.

 

[Ric Flair]

Just now, Aus Fox said:

Did we ever get a fee from Liverpool for the young lad that went there? Nyoni? The fact that he’s about 16 and already played for the first team suggests he should be worth a fair few pennies.

 

The tribunal hearing was still to take place last I heard.

[Motty]

1 hour ago, Ric Flair said:

The tribunal hearing was still to take place last I heard.

Hopefully means they will look at market value if we are lucky £15 to 20m

[Ric Flair]

3 hours ago, Motty said:

Hopefully means they will look at market value if we are lucky £15 to 20m

Hahahaaa I think we can at least be looking at north of £5-6m for him.

[Motty]

9 minutes ago, Ric Flair said:

Hahahaaa I think we can at least be looking at north of £5-6m for him.

That would go in the accounts for the last year as he has already gone.

[foxinsocks]

16 minutes ago, Ric Flair said:

Hahahaaa I think we can at least be looking at north of £5-6m for him.

did he sign an apprentice contract - I though that was at 17 and not before?  Is there a precedent for clubs being paid for a 16 year old?

[Ric Flair]

32 minutes ago, foxinsocks said:

did he sign an apprentice contract - I though that was at 17 and not before?  Is there a precedent for clubs being paid for a 16 year old?

Yes, it happens if the two clubs can't agree a fee. We agreed a fee with Man City last summer for Tyrese Noubissie who was only 14 but had we not then it would have been set at tribunal.

 

Likewise Chelsea had to pay £8m for a couple of Brighton youngsters a year or so ago.

 

Nyoni already making his debut for Liverpool's first team is likely going to put us in a very strong position when the tribunal occurs.

[FrankieADZ]

1 hour ago, Ric Flair said:

Hahahaaa I think we can at least be looking at north of £5-6m for him.

its liverpool so of course it will go in their favour, they'll probably pay £5.69 and a 6 pack of stella's 

 

 

[Hitesh]

Could drag into next year according to Percy...

 

https://www.telegraph.co.uk/football/2024/08/13/leicester-city-fc-premier-league-spending-rules-profit/

[filbertway]

On 05/06/2024 at 08:59, Heskey2011 said:

Rudderless...reeeyyyt...just got promoted, completed amazing training ground, stadium expansion, kept squad together. You've got to be doing some squinting to see oblivion on the horizon.

Whoever you're listening to who laughing at us, I'd stop listening to them mate. 

Proper chocolate tea pot you.

 

What are your expectations for the club over the next 2-3 seasons?

[UniFox21]

2 minutes ago, filbertway said:

 

What are your expectations for the club over the next 2-3 seasons?

Relegation, stagnation, decline

[Heskey2011]

2 hours ago, filbertway said:

 

What are your expectations for the club over the next 2-3 seasons?

Either being top of the championship or bottom half of the prem, occasional cup run, Europe once again in the next 20 years would be fantastic.

[gurru991]

4 hours ago, filbertway said:

 

What are your expectations for the club over the next 2-3 seasons?

That depends on who is running this shit show !!

[filbertway]

7 hours ago, Heskey2011 said:

Either being top of the championship or bottom half of the prem, occasional cup run, Europe once again in the next 20 years would be fantastic.

For a club that was picking up 60+ points a season they are quite low expectations. Personally I still think they're massively too high.

 

Look where Top, Rudkin and Whelan have taken a club full of young talent and high priced assets. Where are they going to take a club with no financial pulling power and an aging squad with very few assets?

 

I think it'd be an astounding piece of management to have us top half of the championship in 3 seasons time. Relegation is all but a certainty and this time we won't have the luxury of adding £40m worth of talent to a squad packed with internationals.

 

I think even Tony Bloom would have trouble arresting this slide in the short term, never mind the clowns running the show now.

 

[Heskey2011]

10 hours ago, filbertway said:

For a club that was picking up 60+ points a season they are quite low expectations. Personally I still think they're massively too high.

 

Look where Top, Rudkin and Whelan have taken a club full of young talent and high priced assets. Where are they going to take a club with no financial pulling power and an aging squad with very few assets?

 

I think it'd be an astounding piece of management to have us top half of the championship in 3 seasons time. Relegation is all but a certainty and this time we won't have the luxury of adding £40m worth of talent to a squad packed with internationals.

 

I think even Tony Bloom would have trouble arresting this slide in the short term, never mind the clowns running the show now.

 

Think we've sold lots of the young talent really well tbh for years. Just to Chelsea alone we've sold brilliantly.

 

There's 43 other teams in the Championship and Prem, what they do affects us, to me it's very blinkered thinking all this Rudkins to blame Tops to blame Susan's messed it up,  when we were picking up 60 points people ask the same questions no praise for the board, it's why aren't we picking up 61 and qualifying for Champions league.

Im just happy we're back in the prem, I'll try and enjoy it, if we go down then it's a new challenge next year, maybe see more of Alves and Braybrooke.

Ultimately we'll be there or there abouts, but if we're not it's OK. We'll come back another time.

 

 

 

Edited 14 August by Heskey2011