Image for Hidden PSR, transfer bonus of Leeds United’s Dan James contract agreement revealed
Image for Hidden PSR, transfer bonus of Leeds United’s Dan James contract agreement revealed
Leeds United announced a contract extension for Dan James this week to extend the winger’s stay at Elland Road until the summer of 2029.
Incoming business and speculation has slowed significantly over the past week since Gabriel Gudmundsson’s arrival, but the club have clearly been working hard in the meantime.
Other business has also been wrapped up in the form of new contracts, with Dan James the latest to pen fresh terms.
Monday evening brought confirmation of previous reports that James has penned a new contract to keep him at Elland Road for the foreseeable future.
(Action Images/Craig Brough)
James had seen his contract enter the final 12 months, having joined from Manchester United in 2021 for £25million on a five-year contract.
The Wales international’s new deal sees him tied down for four years until the summer of 2029, taking him to the age of 31 in West Yorkshire.
Hidden PSR boost revealed with Dan James’ new Leeds United deal agreed
On top of just tying down the 24/25 club Player of the Season to a new long-term deal, there’s also the benefit of what is does for Leeds’ PSR situation.
Every little helps for Leeds, and as pointed out by LUFC Charts’ breakdown on X, James’ amortised book value stood at £5million with 12 months remaining on his contract.
With a four-year extension, that £5million sum is now stretched across the length of James’ deal until 2029, meaning James’ yearly cost now drops to £1.25million, essentially freeing up the remaining £3.75million in Leeds’ calculations this year and for each year after that too.
That £3.75million doesn’t appear a substantial amount, but given how amortisation allows spending to be spread across five-year contracts, that headspace cleared from James’ extension could allow Leeds to sign a new player on a five-year deal worth a transfer fee of £18.75million.
Leeds United need to box clever with PSR calculations
PSR is a massive headache and it’s something that most clubs would really prefer to do without, but for the time being, Leeds need to work around the threshold smartly.
James’ extension reduces the club’s outlay for this season and could allow us to spend on a new signing as a result.
Transfers and squad building shouldn’t have to be ruled by such bizarre and murky rules, and you’d hope PSR isn’t here to stay for too much longer, but Leeds have to find the best ways to optimise their position.
This new deal could be a shrewd way of doing just that.