It is 14th June 2024, and the summer transfer window has opened. Julen Lopetegui was installed as West Ham Head Coach approximately three weeks before this date.
Tim Steidten has a transfer war chest at his disposal. Luis Guilherme and Wes Foderingham became the Hammers’ first signings on 1st July 2024.
The need for a striker is critical, and young forward Jhon Duran has been touted as available despite a contract running until 2027. His parent club, Aston Villa, are also in desperate need of transfer funds ahead of a PSR deadline on 30th June. Villa reported a loss of £119m in their accounts up to March 2023.
Some innovative “wheeling and dealing” involving academy prospects Omari Kellyman (£19m) and Tim Iroegbunam (£9m) saw Villa sell them to Chelsea and Everton. Moussa Diaby was sold to Al-Ittihad for £50m, Douglas Luiz moved to Juventus for £42m, and Jaden Philogene was later sold to Ipswich Town for £20m after being purchased from Hull City for £13.5m.
This raises the question of why West Ham didn’t pursue a deal for Duran before the 30th June 2024 PSR deadline. Villa secured the player on a long-term contract until 2030. However, the mystery deepens as to why West Ham tested Villa with another bid. For all the negative press, the Hammers clearly had reason to believe their bid would be accepted.
Villa’s PSR Pressure
A report in Birmingham Live indicates that Aston Villa would only be able to post a £17m loss for 2024-2025 to comply with PSR, even accounting for increased revenue from Champions League participation. They flew under the radar in 2023-24 by extending their financial year to 13 months, a legal manoeuvre that helped boost revenue.
Villa seem confident Duran will attract higher bids, with PSG reportedly lodging interest. Unai Emery confirmed that around 40 clubs enquired about the player during the summer. While Villa are playing a risky game, the extended PSR compliance window works in their favour, and they are keen to raise the threshold from £105m to £135m over three years.
West Ham, well aware of Villa’s record-breaking sale of Jack Grealish to Manchester City in 2021-2022, may view their own sale of Declan Rice to Arsenal as comparable. However, Villa’s Grealish profits will drop out of the PSR cycle for 2022-2025.
The biggest PSR loophole concerns homegrown players. For clubs like West Ham, securing academy talent is critical, as any profits from their sales count as pure profit in the financial year of the sale.
