‘Leeds United help PSR’ as trick emerges with new deal agreed

‘Leeds United help PSR’ as trick emerges with new deal agreed

The most recent arrivals to Elland Road are Lucas Perri and Anton Stach, who cost about £17 million to bring from

Hoffenheim.

But the Peacocks have also made a big internal deal, as Dan James has agreed to a new, long-term contract.

The winger has made more than 100 appearances for the Whites since joining the Yorkshire club from Manchester

United in 2021.

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 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 explained. “If you look at the initial transfer fee and then

divide that by the contract length, which is the first bit of amortisation,” he said.

It is impossible to determine Dan James’s book value unless you go back in time to the transfer. When a contract is

extended, however, the new length is divided by the current bulk value, which invariably yields a lower figure that

negatively impacts the bottom line.

The player’s amortisation charge will be reduced if the contract is extended, which helps prevent PSR. It’s simply

something that clubs have done over the years; it’s not exactly a gimmick.

“Whatever the arrangement was, £5 million would be involved if it lasted for five years. If his current wealth is £15

million, the value is reduced when that sum is divided by four. “Whatever the agreement was, if it was for five years,

that would be £5 million. If he is now worth £15 million, you divide that amount by four, which lowers the value.”