With clubs having to submit their accounts by 30 June (the end of the PL financial year) so effectively its an accounting deadline & only just a few days away.

As it stands when a club sells a player any profit is recorded in its 'entirety' in that year's accounts with homegrown academy players generating 'pure' profit'.

In contrast, the amount paid by the buying club is spread out - using an accounting practice called 'amortisation' over the length of the contract.

Then we have the distortions that PSR player 'book-value' represents. Profit & loss on a player transfer is calculated from the difference between the transfer fee & the book value of a player.

Book value generally 'depreciates consistently' across the length of a player’s contract, up to a maximum now of 5 years.
So if a club buys a player for £100m that club will show a loss of £20m per year for the next 5 years.

But distortions of said book values comes when players are sold as Academy players have a book value of zero ££££'s.
So if Chelsea therefore sold Connor Gallagher for £50 million it would be recorded as £50 million pure profit towards PSR !

So, if two clubs agree to sell players to each other, particulary Academy players, then it can provide a significant financial boost, obviously.

So, on the other side of the coin questions have been raised over whether all this highlights the risk that clubs will now use their Academies to only produce players that can then simply be 'traded' to help meet PSR - rather than developing them for their first team squad, more so for smaller clubs who don't have the financial clout of the big guns.

I know the Players Union are saying that this is the latest example of players being used partly as commercial assets rather than employees. The PFA is understood to share 'concern' that the current regulations could 'encourage' even more clubs to find furter creative ways to stay within the rules which will inevitably impact players & the game it's self.

Obviously PSR is highly contentious creating many opinions with a growing list of clubs falling foul of it. 🤐
The sense is that recent Academy deals are the first wave of 'gaming' the system which could result in clubs becoming even more divisive in ways that are already quite creative, wrongly or rightly. 😮

The Times reported today that the PL is keeping a close eye on player transfers amid concerns that some deals are being used to exploit loopholes in the Profit and Sustainability Rules (PSR).
Yeah, i bet they are !