Leicester City and a handful of Premier League rivals are racing against the clock to comply with profit and sustainability rules before the end of the football accounting year – but the passing of the June 30 deadline in itself might not immediately clear everything up.
City must make cash before the close of the accounting period on Sunday – and their best chance to rake in a significant amount is to sanction the sale of star midfielder Kiernan Dewsbury-Hall, and a deal with Chelsea is in the works.
Any cash generated by academy graduate Dewsbury-Hall’s departure would go into the books as pure profit and – with £10 million already banked in compensation for losing Enzo Maresca and his staff to Chelsea – it would almost certainly solve the PSR concerns for the 2023/24 season at the very least.
The EFL have long predicted City were walking a tightrope and placed them under a registration embargo in the early spring.
The BBC warns, however, that deals cannot be processed on June 30 itself, “as it is not a working day, so some transfers may not be confirmed and registered until Monday”. It is believed that deals can still be put in place on the Sunday but it would be an anxious wait until the following day for the EFL or Premier League to then wave a green – or red – flag.
To comply with PSR for this football accounting period, Leicester’s losses cannot exceed £13m, which is the Championship’s threshold. Usually, PSR calculation are judged over a three-year cycle, but the EFL operates a double-jeopardy rule which means that any clubs previously found in breach of PSR get their losses capped.
