Clock’s ticking for Premier League clubs as new transfer deadline is looming – and this one could cost points

Manchester United’s clash with Fulham at Old Trafford on Friday, August 16, will be the first fixture of the new season, with United manager Erik ten Hag instantly under pressure to deliver after receiving an unexpected mandate to continue in the job.

The post-Euro 2024 transfer window scramble will have reached boiling point by then, but a fresh dimension has been added to the story this summer as the deadline for clubs to comply with the Premier League’s profit and sustainability rules (PSR) is looming large.

June 30 is the date circled in the diary for clubs to avoid the fate suffered by Everton and Nottingham Forest last season after both were handed points penalties for PSR breaches.

Under the rules, a club’s losses cannot exceed £105m over the three-year assessment period or a reduced figure if that club were outside the Premier League for any part of that period.

A move to raise the threshold to £135m – reportedly brought forward by Aston Villa – was rejected at the AGM of Premier League clubs earlier this month.

Clubs can deduct expenses from loss-making investments like their academy or their women’s team, yet those declaring big financial deficits now know points deductions are an inevitable outcome.

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While PSR rules are set to be scrapped or remodelled over the next couple of years, they are still in place for next season, sparking big concerns for a handful of leading clubs.

Newcastle, Aston Villa and Leicester City are among those that may be forced to sell players before the June 30 deadline to avoid the threat of sanctions, with Chelsea another club manoeuvring to avoid penalties.

The Stamford Bridge club gambled on instant success as they embarked on a spectacular attack on the transfer market since Todd Boehly’s consortium completed their takeover in May 2022, with more than £1 billion spent on players since.

Such a lavish level of investment could only meet PSR guidelines if Chelsea achieved success on the field and in the modern game this evolves around Champions League qualification.

Thanks to a huge TV contract with TNT Sports to screen the Champions League in England, Premier League clubs benefit from bigger cash windfalls from the competition than their European rivals.

Manchester City received an estimated £130m in Champions League prize money and TV revenue from their winning run in the 2022/23 competition, contributing to their declaration of record profits of £712.8m last November.

Of course, the method City’s accountants used to reach a profit figure – which was a record in Premier League history – is shrouded in suspicion with the credibility and financial value placed on City’s sponsorship deals the subject of an ongoing Premier League enquiry that has seen the club hit with 115 charges.

City’s impressive profit figures ensure they will not be subject to PSR sanctions for now, but Chelsea may struggle to avoid punishment unless they bring in some big money from player sales and additional outside revenue.

Several Premier League clubs expressed their concern after Chelsea reportedly avoided a PSR points penalty last season when club owners sold a hotel at their Stamford Bridge site to one of their sister companies to boost revenue.

With operating losses of £249m in their latest financial report, there are claims that the club are also completing a transaction over the sale of their Cobham training ground to generate funds, but player sales may also be a necessity.

The woes for Leicester City are more pressing, with the newly promoted club facing legal battles with the Premier League and Football League over their financial affairs.

Leicester were charged by the Premier League in March for an alleged breach of PSR rules and quickly issued legal proceedings to block any sanction.

The Premier League would not have been able to punish Leicester for breaking PSR rules if they were still a Championship club, but their promotion back to the top flight means they could now be threatened with a points penalty unless they manage to deliver some swift financial income.

Aston Villa’s qualification for next season’s Champions League will not help their balance sheets for the last couple of seasons.

Villa reported a loss of £119.6m in their latest accounts up to May 31, 2023, with owner Nassef Sawiris suggesting the Premier League’s profitability and sustainability rules are a barrier to growth in football.

“Some of the rules have actually resulted in cementing the status quo more than creating upward mobility and fluidity in the sport,” said Sawiris. “The rules do not make sense and are not good for football.

“Managing a sports team has become more like being a treasurer or a bean counter rather than looking at what your team needs.

“It’s more about creating paper profits and not real profits. It becomes a financial game, not a sporting game.”

Newcastle are also believed to be scrambling to offload unwanted players as they look to comply with PSR rules after a player recruitment drive costing around £40m since they were taken over by Saudi investors.

Amid this new transfer deadline phenomenon, rival Premier League clubs are eyeing up some opportunities to sign players that might not have been available except where quick sales are required.

In effect, we now have two transfer deadlines in place in the Premier League, with the first is coming over the horizon next weekend.