Arsenal can give themselves PSR boost with clever deal before transfer deadline

Arsenal'ssummer transfer business is unlikely to be over as they continue their preparations for the new season.

The Gunners have been busy in the transfer market this summer with six new additions already being made to Mikel Arteta's squad.

Viktor Gyokeres, Noni Madueke, Martin Zubimendi, Christian Norgaard, Cristhian Mosquera and Kepa Arrizabalaga have all been signed by Arsenal this summer, and there is the potential for more to come.

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There is also the possibility that Arsenalmay sanction some exits from their squad before the transfer window closes. Who those players could be remains uncertain at this point, but some members of the squad have been linked with moves away.

Gabriel Martinelli and Leandro Trossard have both been linked with a move s away from the Emirates Stadium for some time. There has also been speculation about Gabriel Jesus' future in North London following the arrival of Gyokeres.

The rumours linking Martinelli and Trossard with an exit may quieten down now that Bayern Munich have just signed Luis Diaz from Liverpool in a £65.5million deal. When it comes to Jesus, though, there have been rumours that a move to Flamengo in Brazil could be on the cards.

A sale of any kind would certainly help Arsenal's standing with the Premier League's Profit & Sustainability Rules. However, as Reach PLC's Business of Football writer Dave Powell says, the Gunners are in a financially strong position.

“Arsenal approached the summer window safe in the knowledge that they had plenty of headroom when it came to PSR,” he said.

“The club are now into a new financial year, on a new three-year cycle, and the £52m loss from 2022/23 will drop off the assessment period. That is impactful for the club, with the 2023/24 loss at £18m, and a successful run in the Champions League and further revenue growth likely to see the club in a healthy position. They will be targeting the same again for 2025/26.

“The £105m permitted losses over a three-year period are one thing. Clubs have what are called allowable losses for such things as depreciation, investment into infrastructure, investment into the women’s team and the academy, and community initiatives.

"For 2023/24, those allowable losses for the Gunners stood at £55m, meaning that against the £35m permissible loss for the season, and the actual £18m loss, the club were actually net PSR positive to the tune of £38m.

“The long and short of it is that Arsenal could have lost almost £200m in 2024/25 and still be PSR compliant. They won’t do that, of course, not even remotely close, and that then rolls over, meaning that the headroom becomes even greater for 2025/26, likely more than £300m in losses allowed before PSR becomes an issue.

“This summer was one where Arsenal needed to spend, though. The work that has been done to close the gap with the likes of Liverpool and Manchester City in recent years has been built on successive qualifications for the Champions League after a number of seasons spent away from European club football’s elite competition saw them lose a lot of financial ground.

“Getting over the hump to claim the biggest honours, and giving themselves the best possible chance of continuing to be a top four side at a minimum in the face of a host of rivals strengthening with the same goal in mind, requires investment.

“Arsenal have spent £191.3m in terms of guaranteed fees, not including add-ons, for their summer signings. Those fees are what will be amortised over five-year deals for all but Christian Norgaard, on a two-year deal, meaning the amortisation costs added are £41.3m per year.

“The Gunners’ amortisation costs for 2023/24, the most recently published set of accounts, were £171m, among the highest in the Premier League.

“While adding another £41.3m to that might seem heavy, the club will be seeing a reduction in annual costs for big transfers such as Declan Rice, whose book value will drop by £20m, reducing the amortisation costs by that amount, and other big ticket players such as Kai Havertz, Jurrien Timber, Riccardo Calafiori and Mikel Merino.

“The decrease in book value of all those players will likely account for the lion’s share, if not all, of the amortisation costs added.

“But the spend will require Arsenal to tap into cash for instalments, and the wage bill will increase. The sale of players at the right price will likely be on the table if it provides a benefit to reducing either amortisation costs or a meaningful impact on the wage bill, but there will be no PSR consideration for doing so. They remain well clear of having any such worries on that front.”