The Premier League Warns Clubs Over Inflated Transfer Fees

The Premier League has issued a communication to its clubs outlining regulations concerning the fair valuation of players involved in transfers, prompted by a significant number seeking clarification following recent swap deals. Earlier this week, BBC Sport reported that at least one club planned to address this issue with the Premier League amid concerns that some clubs might exploit potential loopholes in Profit & Sustainability Rules (PSR) by trading players before an impending accounting deadline on Sunday.

In the letter, the Premier League warns that if it deems a transfer fee inflated, the selling club may have to refund part of it. This caution responds to transactions like Everton and Aston Villa exchanging academy products Tim Iroegbunam and Lewis Dobbin for a reported £9m each. Additionally, Villa was reportedly close to selling another academy player, Omari Kellyman, to Chelsea for £19m while Chelsea sold homegrown Dutch defender Ian Maatsen to Villa for £37.5m in a separate deal.

The league emphasizes that clubs must conduct such deals at arm’s length to prevent financial manipulation. It reminds clubs they may need to provide evidence justifying the fairness of these transactions. If necessary, the league will conduct a fair market value assessment and may mandate adjustments if transactions do not meet these standards.

The letter concludes by reminding clubs of their broader legal and regulatory responsibilities regarding financial practices, underlining the consequences of non-compliance.