It’s all quite confusing, PSR. Not anymore. I’ve figured it all out. I’ve simplified ‘Profit and Sustainability’ to how it will affect Fulham in the coming weeks, what fees count towards PSR? How much do Fulham spend on said fees? What can FFC really afford to spend? How have major sales sales have affected the Whites’ transfer budget? Keep your eyes moving. Find out.
How Does PSR Work: What incomings help offset against PSR? What outgoings go against PSR?
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Don’t worry, I’ll keep it snappy, but I’ll give you a quick run down on how PSR works. Major offsetting income comes courtesy of broadcasting rights, and prize money, commercial revenue, e.g., sponsorships, and, obviously, player sales. On the other hand, expenditure predominantly leaves through amortised transfer fees (splitting the transfer fee evenly across each year of player’s original contract), player wages, and often overlooked fees, like match day operations, travel, and overall scouting budgets.
Any investment in the clubs’ facilities is offset against PSR, as well as youth budgets and our Women’s team. Simply, the Riverside redevelopment has no regard to our PSR standing. Neither would an upgrade to the Hammy End bogs, Mr. Mackintosh…
How much can Fulham lose per year?
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So, in the past three seasons the Whites have been able to lose £83M per year. However, as of the 1st of July, the official opening of the Whites’ fourth consecutive season in the top flight, Silva’s side’s first full three-year cycle as a Premier League club. begun. This increases the Whites’ PSR cushion, almost budget, from £83M to £105M. An invaluable £22M jump, as dystopian as it is, just widening the gap to the Championship from Marco’s men.
In 24/25, FFC lost £33.4M according to the club’s accounts, in 23/24 and 22/23, it was £26M. Meaning the Whites lost £85.4M in the past three financial years. An overspend of £2.4 million pounds from the previously afforded £85M loss, but crucially, much of that said spending has gone on factors that don’t count against PSR, like the Riverside redevelopment, alongside other offsetting factors that I stated above. Because of this, Fulham are nowhere near PSR catastrophe, especially when you count in the aforementioned £22M increase in allowed losses this summer.
How Joao Palhinha & Jay Stansfield Sales Transform FFC’s Transfer Budget
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Despite being sold last window, due to PSR windows being calculated from the 30th of June of each annual year, the pure profit sale of Stansfield contributes £10 million to ‘Los Blancos’ 25/26 PSR budget cycle, as it impacts the allocation allowed for the forthcoming year, not the year the sale takes place in.
Joao Palhinha’s Bavarian departure doesn’t see the full transfer fee of £42 million added to the Cottagers’ new profits allocation, but Palhinha’s transfer fee, like Stansfield’s, impacts this year’s PSR loss allocation.
The impact isn’t the full £42M as the amortisation remaining from his arrival from Iberia, to the UK, still has a year remaining from his original deal he signed from Sporting, that was set to end in 2027, meaning £5M from the original £20M the Whites paid Club De Portugal has to be offset against the £42M fee Bayern paid Fulham. This still presents £37M to offset losses. Make that £47M when you combine the sales of Joao and Jay.
So, assuming Shahid Khan and co replicate their spending on more trivial PSR counting expenditure, like £400,000 on travel costs, £900,000 on overall scouting costs, whilst maintaining an ability to break even on match day costs, a conservative estimate with the new ‘Fulham Pier’ now open, administrative PSR costs will set the club back around £1.3M. The Whites’ total staff wage bill sits around £71M, but due to amortisation, it writes off £30M against the books. In turn, the sale of Palhinha covers the wage bill and admin costs that push against PSR. Quite the useful sale, Mr. Khan…
Explaining What Fulham Can Actually Spend This Summer
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Due to a fruitful selling summer last summer, the Whites have the full aforementioned £77M buffer to splash in a coming Silva squad overhaul in the upcoming months. £77M might not sound like a lot, but, trust me, it is. Thanks to transfer amortisation that £77M is truly a fee far, far greater amount than it seems. Let me explain…
For example, if Tony Khan and the fellas opted to make a signing for £25M, on a five-year deal, being paid 65k per week, aka £3.38M per year, alongside a combined £2.5M signing bonus and agent fee, London’s Original would pay a £5M amortised transfer fee for the duration of X player’s contract, whilst paying the added £2.5 signing bonus and annual wage (£3.38M) in said player’s opening SW6 season. In this case, it would be a payment of £10.88M against the allowed cushion of £77M that Fulham can spend in the market this summer.
So, in theory, Tony Khan has the power to shell out seven £25M signings this summer. Truly astounding when you put it like that.
How Does This Compare to Other Premier League Sides?
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Compare this comfortable PSR predicament with last season’s European rivals, AFC Bournemouth, and you’ll see a stark difference. It’s clear to see why the Cherries have had a defensive firesale this summer, as the South Coast side posted £66M losses last campaign, leaving the Cherries very minimal ‘Profit and Sustainability’ wiggle room, compared to FFC’s £77M buffer. Do the same with Everton, you see another side being forced to sell, with a tight PSR leash.
There’s no doubt Fulham have to capitalise on a gulf in financial class in the coming weeks. Whilst the gap the Whites hold is big, smart sales, like Andreas Pereira, as he is entering the final two years of his deal, at 29, is crucial to maintaining Fulham’s financial health in the following years. Doing such would allow Fulham to catch up with selling leaders, like Brighton and Brentford. Like it or lump it, that’s how it works with ‘Profit and Sustainability Rules’ in full effect.
Where Do Fulham Stand?
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Simply, the Whites are in a strong position during an important summer by the River. Sign younger players, that are willing to sign longer contracts to keep amortisation in check, whilst also offering much needed resale value. Fulham are on track for sustainability, with room to splash out on some flashy transfers. Tony, Marco, make use of that.