Wolves could move their year-end accounting deadline from May to June, giving them greater wiggle room in the transfer market. Finance specialist Stefan Borson, who spoke exclusively to Football Insider, believes that after the West Midlands club came dangerously near to the profit and sustainability (PSR) limit over the previous two seasons, they are now “stuck.”
Premier League clubs are only allowed to lose £105 million in a rolling three-year period under the PSR regulations. To stay under the cap, Wolves had to let go of a number of well-known players, including Pedro Neto and Max Kilman, who left during the summer.
That has impacted matters on the pitch as Gary O’Neil’s side currently sit bottom of the Premier League table on just one point after failing to win any of their opening seven games.
Wolves could have more financial flexibility with accountancy change
Although Wolves do find themselves in a difficult financial position, Borson believes moving their accounting deadline back a month to 30 June could prove beneficial.
“I think they are stuck generally,” Borson told Football Insider.
“At the moment, they are a club that’s right on the edge of PSR breaches.
“They are also a club that has a 31 May year-end, which they can change.
“I don’t think they have changed their year-end before, which means they can quite easily change that one time.
That would give them a bit more flexibility in that first part of the transfer window between 1 June and 30 June to sell some players and generate some additional profit if they get into trouble.
“But without that, they have to get to the end of the January window knowing they are secure from a PSR perspective and that’s often quite hard.”
Read more news on
sportchannel.co.uk
Leave a Reply