15 Aug 2024 14:52:08
So they made Bowen captain so won't sell, they can't shift any of the players they wanted to paquetta, ings, aguerd, zouma etc so how are they financing this spending spree and still complying with psr? I can only see one way which is kudos going to Liverpool to be honest

1.) 15 Aug 2024
15 Aug 2024 16:46:51
I am not totally certain, but I believe the reason we are still compliant with Profit and Sustainability Rules (PSR) because the rules relate to club finances regarding player purchases and sales over the course of a financial year, whereas Financial Fair Play (FFP) relates to clubs' overall finances over five years.

Being compliant with PSR is easier, because West Ham can use a spread the cost of a players transfer fee over the length of their contract when (up to a maximum of five years) and this means a £40 million transfer, even if it is all paid for up front, will still only "Cost" £8 million in that financial year.

So whilst West Ham have signed eight players this summer and spent a lot of money.

GK - Wes Foderingham - Free signing - No amortisation cost

CB - Max Kilman - 7 year contract - £40 million signing - amortised over the maximum five years at a cost of £8 mil per year

CB - Jean-Clair Todibo - Loan Signing - No amortisation cost unless the loan is made permanent next summer, but the amortisation will begin in the next set of annual accounts

RB - Aaron Wan-Bissaka - 7 year contract - £15 million signing - amortised over the maximum five years at a cost of £3 mil per year

CM - Guido Rodriguez - Free signing - No amortisation cost

W - Luis Guilherme - 5 year contract - £19.5 million signing - amortised over the maximum five years at a cost of £3.9 mil per year

W - Crysencio Summerville - 5 year contract - £26 million signing - amortised over the maximum five years at a cost of £5.2 mil per year

F - Niclas Fullkrug - 4 year contract - £22 million signing - amortised over four years at a cost of £5.5 mil per year

This means in this years accounts, for the purpose of PSR we have only "spent" £25.6m in amortisation for this summer’s signings.

The thing to remember though is FFP does not work like that, which is why this kind of transfer spend can't really happen every Summer. Not without significant sales.

2.) 15 Aug 2024
15 Aug 2024 17:00:08
I forgot to mention, the amortisation is completely different to the agreed payment terms of the transfer fee. We could pay 50% up front of a £50 million transfer fee, and then 25% over the next two years, but the amortisation would remain £10 million per year assuming that player signs on a five or more year contract.

PSR has been in place for a while, but the maximum number of years a players transfer fee could be amortised across changed to five years in December 2023 because it was called in to question when Chelsea spent huge sums on transfers, offering 8 year contracts to players like Mudryk during the 2022/23 season.

3.) 15 Aug 2024
15 Aug 2024 17:27:52
Thanks for the work you put in there, DIE-4. That’s really helpful.

4.) 15 Aug 2024
15 Aug 2024 18:24:29
Die_4, Wow that’s some impressive post??⚒⚒⚒⚒

5.) 15 Aug 2024
15 Aug 2024 19:15:56
Hi all, The current Premier League FFP threshold for clubs is a maximum loss of £105m over a three-year rolling period.

6.) 15 Aug 2024
15 Aug 2024 19:17:39
Profit and sustainability laws are: Make 'allowable' losses of up to £5m/season (averaged over three seasons)
Increase that figure to £35m/year with owner investment (averaged over three seasons)
Spread out any transfer costs over a maximum of five years.