Arsenal may have to make sacrifices in the transfer market this summer in order to avoid falling foul of Premier League spending rules.
Arsenal will have to be somewhat cautious with their spending this summer.
The Premier League are now cracking down on overspending, and dealing out harsh measures to those clubs that break their PSR rules – as evidenced by the points deductions that were handed out to Everton and Nottingham Forest last season.
In order to avoid such punishment, the Gunners must ensure that their expenses do not exceed their profits beyond the permitted margin.
In order to give themselves more room to work with as a spending force this summer, Mikel Arteta and sporting director Edu will be keen to generate as much profit as they possibly can. One means of doing so is to sell home-grown talent.
Where Arsenal now stand with Premier League spending rules
Before assessing which members of the current Arsenal squad would be ideal candidates to offload for such a purpose, TBR Football Finance Expert Adam Williams has explained the club’s present financial situation:
“Arsenal have really pushed the envelope with their spending in recent years and are towards the upper limit of the Premier League’s Profit and Sustainability limits.
“On paper, they appear to be over the three-year £105m allowable loss limit, but Covid add-backs and other PSR deductible spending means they have avoided a breach.
“I fully expect them to do the same for the 2023-24 assessment period, so I don’t think they’ll be one of the teams under big pressure to sell.
“However, depending on their financial performance in 2023-24 and their projections for the coming season, they may want to shift profit from player sales into the current assessment window rather than the one that kicks off in 2024-25.”
Eddie Nketiah, Emile Smith Rowe, and Reiss Nelson could all bring profit to Arsenal
Arsenal are willing to part with Eddie Nketiah, Emile Smith Rowe, and Reiss Nelson this summer.
The trio of Hale End academy graduates are all rotation options under Arteta, and could do with seeking pastures new, where they could enjoy being regular starters.
How significant a fee the Gunners would be able to fetch for any of these three players remains to be seen. Smith Rowe has shown that he can shine in the Premier League before, Nketiah has been capped at senior international level by England, and Nelson’s raw potential is obvious.
Nelson could be an ideal replacement for Michale Olise at Crystal Palace. The Eagles have also previously shown an interest in Nketiah.
Meanwhile, Smith Rowe has been linked with a switch to Aston Villa. Unai Emery will know all about the midfielder’s quality, from the time he spent in charge of Arsenal, and will back himself to get the best out of the 23-year-old at Villa Park.
Why Edu should sell Hale End trio this summer
Williams has now presented his argument for why Arsenal should look to cash in on these three players:
“Nketiah, Smith Rowe and Nelson would all be deemed ‘pure profit’, basically an accounting term that accounts for the lack of cost associated with signing players for a fee.
“Essentially, they would be selling them at inflated value in terms of how their sale fees shows up in the books.
“I imagine they will be weighing up whether their value as squad players is matched by the circa £90m leeway they would get from their sales in terms of Profit and Sustainability.”