Why Leicester City want Kiernan Dewsbury-Hall swap deal as Chelsea transfer deadline nears

Kiernan Dewsbury-Hall of Leicester City at the end of the Sky Bet Championship match between Leicester City and Birmingham City at King Power Stadium on April 6, 2024
-Credit: (Image: Photo by Plumb Images/Leicester City FC via Getty Images)

It's been a whirlwind 24 hours for Leicester City and Kiernan Dewsbury-Hall.

Due to the Foxes' financial regulations concerns, his exit before the end of June has always been on the cards. However, transfer rumours had been sparse, indicating that his future wouldn't be determined until July or August.

But at the eleventh hour, Dewsbury-Hall been targeted by Chelsea, who are reportedly prepared to offer Leicester City a few players in return. So, with that being said, have rounded up everything you need to know about the 25-year-old's situation.

What's the latest?

According to Fabrizio Romano, Chelsea have approached Leicester City for Dewsbury-Hall with a plan to include several players in a formal proposal. The report states that David Datro Fofana and Cesare Casadei have been mooted as potential makeweights for the midfielder's signature.

Romano adds that Dewsbury-Hall, who sees his contract at the King Power Stadium expire in June 2027, wants to join the west Londoners after a similar swap deal to Brighton recently collapsed.

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How does the deal benefit Chelsea?

Even if a deal is finalised with Chelsea, it won't be a straight swap. Leicester City will receive a fee for Dewsbury-Hall and, as an academy graduate, the sum goes into the books as pure profit.

This is of significant importance to the Foxes as they scramble to comply with Profit and Sustainability Rules (PSR). The Championship's governing body has long forecasted Leicester would breach PSR, anticipating their accounts for the year to exceed losses of £13m, which is the threshold for a single season in the second tier.

While it's unclear how far short the Foxes are, a deal for Dewsbury-Hall would almost certainly put them in the clear. The acquisition of Fofana and Casadei wouldn't financially jeopardise them either due to the way transfers are viewed in relation to PSR.

The entire fee for Dewsbury-Hall goes directly into the accounts for the year the deal occurs, even if the payments aren't all up front. Conversely, the transfer fees for incoming signings are spread across the accounts for the duration of the player's contract.

For instance, if Dewsbury-Hall is sold for £40m, as an academy player who is written into the books for next to nothing, Leicester get all of that profit in their accounts immediately. If Casadei was to join the Foxes for £15m and he signs a five-year deal, only one-fifth of that, so £3m, will go into this year's accounts.

If the Foxes can balance the books, it means they will not be at risk of a second sanction during the upcoming season. They are expected to receive a points deduction for their breach of PSR in the three-year cycle concluding in 2023.

Is there a deadline to the deal being done?

If Leicester need the deal to be finalised to meet PSR for 23-24, then yes, it has to be wrapped up Sunday, as the accounts for the year close on June 30. But it's understood that selling players was on the agenda for the club this summer no matter what.

Just like in any summer over the past decade, sales are required to help fund the club's transfer business and to help them meet PSR in future seasons. If the deal isn't done by Sunday night, it doesn't necessarily mean Dewsbury-Hall won't join Chelsea.

What hitches could there be?

The most glaring issue is Dewsbury-Hall's own thoughts on the matter. Every indication he has given suggests he wants to stay at the King Power Stadium. But equally, he has hinted that he may not have full control over his future.

There have been reports that, if he is going to leave Leicester, he would only be interested in a move to Chelsea. The Premier League has issued a warning that they will be monitoring these 'swap deals' to ensure they reflect fair market value. If the fee is deemed inflated then the Blues could be compelled to refund some of the money.

Why would Leicester be interested in Fofana and Casadei?

It's possible that by aiding Chelsea and signing one or two of their players, the Blues might be inclined to pay slightly more for Dewsbury-Hall than they usually would, thus assisting Leicester's PSR case. Additionally, the Foxes are in dire need of reinforcements.

Dewsbury-Hall could potentially be the fourth central midfielder to depart the club this summer. Dennis Praet has been released on a free transfer, Yunus Akgun has returned to Galatasaray following his loan spell, while Wilfred Ndidi has yet to pledge his future to the club.

This leaves Leicester with only Harry Winks and Hamza Choudhury, although Boubakary Soumare may rejoin the squad after his loan stint at Sevilla. With Datro Fofana and Casadei at the King Power Stadium, the Foxes are well prepared for the new Premier League campaign.