‘Leeds United help PSR’ as trick emerges with new deal agreed
This story includes exclusive opinion from football finance expert Dr Daniel Plumley.
Leeds United have signed a host of players as they strive to achieve survival in the Premier League.
Lucas Perri and Anton Stach are the latest additions at Elland Road, having arrived from Hoffenheim for around £17million.
However, the Peacocks have also carried out a significant deal within their ranks, with Dan James signing a new long-term contract.
The winger arrived at the Yorkshire club from Man United in 2021 and has since made over 100 appearances for the Whites.
Leeds United aid PSR worries with James contract
Daniel Farke will need to decide whether to hand James a starting berth in the Premier League next season.
The Wales international made 21 goal contributions in the league last term and has since been rewarded with a new deal.
Now, football finance expert Dan Plumley – speaking exclusively to MOT Leeds News – has provided insight into the agreement.
“If you look at the initial transfer fee and then divide that by the contract length, which is the first bit of amortization, if you renegotiate a contract, you take the book value at that point in time, which will again be naturally lower, and then you’re dividing by the extended contract period,” he said.
“We don’t know the book value of Dan James unless you track back the transfer, but when you extend the contract, you divide by the new length of the contract based on the current bulk value, so it would naturally make that a smaller figure that goes against the bottom line.
“It’s not a trick per se, it’s just something that clubs have done throughout the years, and if you extend the contract, it will reduce that player’s amortisation charge, which means it helps against PSR.
“Whatever the deal was, let’s say it was five years, then that’d be £5million, and so if he’s at £15million now, you divide the 15 million by four, so it reduces the value.”
James deserves another Premier League chance from Farke
The 27-year-old is no stranger to the Premier League, having represented Man United, Leeds, and Fulham.
However, his impact in the top flight has not been as high as that in the Championship, meaning he has a point to prove.
Considering what he achieved last season, James has earned his right to be given a starting berth.
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