Kiernan Dewsbury-Hall transfer makes sense for Leicester City - but also exposes huge FFP flaw

Kiernan Dewsbury-Hall on the ball during Leicester City's 5-0 victory over Southampton
Profit and loss... Kiernan Dewsbury-Hall could be on the move this summer -Credit:Michael Regan/Getty Images


There was a real sense of joy at the King Power Stadium on Tuesday evening. No, Leicester City are not there yet, but it will be a night that lives long in the memory if and when they do get over the line. And there could be further scenes of jubilation if they finish the job and/or win the title at Preston on Monday.

But, quite quickly, there will be a fall to reality. In the weeks after the season concludes, an independent commission will announce the results of their investigation over City’s alleged breach of the Premier League’s Profitability and Sustainability rules (PSR), and the club could be hit with a points deduction for next season.

Plus, the EFL’s financial rules do not become irrelevant the moment City have a "P" next to their name. There is still work to be done to satisfy PSR before this season’s accounts close at the end of June.

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At the moment, there is little clarity. All that is definitive is the knowledge that the EFL do not have the power to apply any Premier League sanction to City this season, and so there will be no points deduction affecting their promotion bid.

But there’s a lot that’s unknown. It’s not clear how far past the £115m loss threshold City may be for the three seasons up to last summer. It’s not clear how many points City may be deducted if the independent commission finds them guilty, nor the impact of the charge over failing to submit their accounts. It’s also not clear how much they need to make in player sales this June to avoid another potential breach.

But it is known that City do need to sell. While the club successfully challenged the EFL to avoid being placed under a business plan and forced to sell players in January, they have never denied they are on track to break the threshold by the end of the campaign.

The easiest way to divert their course and stay within the allowable losses is to move players on. And frustratingly, there are players who are more profitable than others.

It’s not just the case that Kiernan Dewsbury-Hall is City’s most valuable player. His goal contributions this season, his stamina and ball-carrying, his Premier League experience, his professionalism, and his age all combine to make him a player who should be worth at least £30m.

But it’s £30m that would be worth more to City than nearly any other player leaving for the same amount. And that is because Dewsbury-Hall is a product of the City academy. He has cost the club nothing, and so a £30m sale would go onto the books as pure profit. All £30m is counting against City’s expenditure when it comes to PSR calculations.

Let’s say Wout Faes is sold for £30m. He joined the club in 2022 for £15m on a five-year deal. Through amortisation, he’s on City’s books at £9m come this summer, with that initial £15m reducing by a fifth for every year of his contract. So Faes’ sale for the same amount would go onto the books as a £21m profit.

In that case, it makes more sense for City to sell Dewsbury-Hall. He could solve any PSR problems in one fell swoop. Of course, it’s frustrating that City are in a predicament where they have to consider selling one of their leading performers straight after he’s helped them to promotion, but it’s also irritating that financial fair play rules promote this practice.

It's clear that it's encouraging clubs to sell their academy talents, as shown at some clubs who are sailing close to the wind. It’s why Chelsea have let go of Mason Mount and Lewis Hall, and why they may get rid of Conor Gallagher this summer. It’s why Aston Villa have moved on Cameron Archer, Aaron Ramsey, and Jaden Philogene, despite their obvious talent and potential.

But is that what football should be about? It remains one of the game’s biggest thrills to see a local lad work their way up into the first team, knowing they’ve spent a decade in the club’s academy doing their bit as ball-boys or cleaning first-team players’ boots. It breeds a bigger connection between supporters and clubs.

City are doing an excellent job with their academy. There’s not just Dewsbury-Hall, but Hamza Choudhury, Kasey McAteer and Ben Nelson who have contributed to their successful campaign. But it would be a shame if those players are only viewed through the lens that they’re worth more to the club when it comes to meeting financial regulations.

The rules as they are will only encourage this, when it feels like the opposite should be true. Clubs should be looking to develop homegrown talent so they can flood their first team with talented locals who are proud to wear the shirt and know the culture of the club inside out, rather than simply selling them to meet financial quotas and fund other business.

City are on a six-year run of having at least one academy player in their matchday squad for every game. It’s a stat to be proud of. It would be a shame if it was to end in the near future because all of the players have been sold off.

When City are allowed to buy players again, which position is most in need of strengthening? Tell us your thoughts in the comments section HERE