Ruud van Nistelrooy knows January transfer problem that curtails Leicester City's PSR bonus
In receiving the verdict on their 2023/24 finances now, Leicester City can appeal to potential new signings in a way they could not in the summer. Through June, July and August, City had a potential points deduction hanging over them. It was widely regarded that they would be punished over their 2022/23 accounts and therefore begin the new Premier League season on the back foot.
Internally, City felt that was damaging to their transfer hopes. Convincing prospective recruits and their agents that City were not a club destined for the drop was a difficult task. Yes, the Premier League is a big draw, but as a newly-promoted side who could start on minus points, City were a less attractive destination than all of their rivals.
The judgement, one that saw City escape punishment over their 2022/23 finances, came in September. By then, the transfer window was closed. City were helpless to change their squad.
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But the assessment of their 2023/24 accounts is concluded and City have been deemed compliant. They’re not out of the woods, as the Premier League are appealing against the 2022/23 verdict, but the likelihood is that they will not receive a points deduction this season.
And they know this to be true with more than a fortnight remaining in the January window. They are in a relegation battle, there’s no escaping that, but off-field matters won’t plunge them further from safety. When it comes to negotiations with transfer targets, they now hold a better hand.
Or at least they would do if they had not spent so much in the summer. Despite the concerns that a potential points deduction affected their pull, they still spent plenty. Without knowing the specifics around transfer add-ons and loan fees, it is difficult to put a definitive number on City’s summer business, but estimates put their net spend at around £50m.
While that number pales in comparison to some Premier League sides, it is significant for City. It is near the top of the list for their most expensive summers ever.
That outlay affects their business this month, because they still have to think about profit and sustainability rules going forward. For the next three-year period to be analysed, the £92m loss made in 2021/22 will drop out of consideration, meaning that rough calculations say City can lose £79m this season and still comply. But with the money spent in the summer, and with the wages they have paid out, City have to be careful.
While helpful for their Premier League survival bid and for convincing new signings to join, Tuesday’s verdict will not signal a spending spree. City are not in a position to do that.
The expected signing of Parma right-back Woyo Coulibaly for around £3m is the kind of business City will have to continue to look at this month, unless they make any significant sales. It needs to be smart, cheap business.
Ruud van Nistelrooy has already made this clear. He has set out his “responsibility” over signings. He wants players who can make an immediate impact, but he knows he cannot advocate signings that damage the club’s long-term future, as would be the case if they spent so much this month so as to breach PSR in future seasons.
“I feel a strong responsibility to get the right players in, and in the right positions where it’s important for the squad and for the club in the long term,” van Nistelrooy said last week. “It’s a delicate process.
“I think the needs of the club and the future of the club is in general the most important thing. I feel responsibility as manager to make this club better on a daily basis, and also building a future for Leicester City where it can be a stable Premier League team.
“I want to leave the club in a better place, that is what we are working for. I am emphasising on both – today and tomorrow – so signings have to be right.”
After Coulibaly comes in at right-back, a centre-back and a winger are still wanted. Maybe even a striker and a left-back too. But don’t expect the good news around PSR to spark the arrival of big-money buys.
