Why Leicester City want Kiernan Dewsbury-Hall and Jakub Moder swap transfer as deadline approaches

It’s been a bomb 24 hours for Leicester City and their star man Kiernan Dewsbury-Hall.

Due to the club’s concerns over financial regulations, Dewsbury-Hall’s departure before the end of June has long been a possibility. But transfer speculation had been limited, suggesting his future would not be decided until July or August.

But in the final day, he was targeted by Chelsea for a reunion with Enzo Maresca and has been placed at the center of a swap deal with Brighton, with Jakub Moder heading the other way. Here’s everything you need to know about the issue.

READ MORE: Kiernan Dewsbury-Hall transfer: Brighton £25m, Jakub Moder swap, Chelsea intervention, KDH position

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What is the last one?

Some sort of swap deal is in the works between City and Brighton, with Dewsbury-Hall heading one way and Moder heading the other. According to reports, medicals have been booked for each of the midfielders, with the Poland international fit and willing to join Steve Cooper’s squad.

But while it’s labeled as an “exchange business,” money will also be exchanged. There is no benefit to City simply swapping Dewsbury-Hall for a no-money-down replacement midfielder as part of the deal.

The problem is that Chelsea have now registered an interest in Dewsbury-Hall, giving the seasoned City player two potential destinations. But suggestions in Poland are that Moder’s move is not dependent on Dewsbury-Hall and so could be heading to Stamford Bridge with the Brighton man still coming to the King Power. But time is running out to end it all.

How does the City deal help him?

As mentioned, even if a deal is done with Brighton, it won’t be a trade. City will receive a fee for Dewsbury-Hall and, as a graduate of the academy, this will go on the books as pure profit.

This is of great importance to City as they rush to comply with the EFL’s Profit and Sustainability Rules (PSR). The Championship’s governing body had long predicted City would breach the PSR, expecting their accounts for the year to exceed £13m of losses, which is the threshold for a single season in the second tier.

While it is not known how far City are, the deal for Dewsbury-Hall would almost certainly put them in the clear. And buying Moder wouldn’t put them in financial jeopardy either because of how transfers are charged in relation to PSR.

All of the Dewsbury-Hall charge goes directly into the accounts for the year in which the transaction takes place, even if the payments are not all up front. While transfer fees for incoming signings are split between accounts over the duration of the player’s contract.

Let’s say Dewsbury-Hall is sold for £40m, as an academy player who is on the books for next to nothing, City immediately get all that profit in their accounts. If a deal for Moder is £15m and he has signed a five-year contract, only a fifth of that, so £3m, will go into the accounts this year.

If City can balance the books, it means they will not be at risk of a second ban next season. He is expected to receive a points deduction for breaching the PSR in the three-year cycle ending in 2023.

Is there a deadline for closing the deal?

If City need the deal to be completed to meet the PSR for 23-24 then yes, it needs to be done on Sunday as accounts for the year close on June 30. But it is understood that selling players was on the agenda for the club this summer no matter what.

As with every summer in the last decade, sales are needed to help fund the club’s transfer business and help them meet their PSR in future seasons. If the deal isn’t completed by Sunday night, it doesn’t mean Dewsbury-Hall will definitely stay.

What problems could there be?

The most glaring problem is Dewsbury-Hall’s views on the matter. Every indication he has given suggests he wants to stay at City. But equally, he hinted that he may not have total control over his future.

There have been reports that if he is to leave the King Power Stadium, he would only be interested in a move to Chelsea. This is a problem if an offer comes from Stamford Bridge and is not as financially beneficial to City as a move to Brighton would be.

The other issue is that the Premier League has warned it will review these “exchange offers” to ensure they have a fair market valuation. If the fee is found to have been inflated, then the City could be forced to return some of the cash.

Why would City want Moder?

It could be that by helping Brighton sign one of their players, the Seagulls are willing to pay a little more than they would normally pay for Dewsbury-Hall, thus helping City’s PSR case. But City are also desperately short of midfielders.

Dewsbury-Hall could be the fourth central midfielder to leave the club already this summer. Dennis Praet was dropped on a free transfer, Yunus Akgun returned to Galatasaray after his loan spell, while Wilfred Ndidi is yet to commit his future to the club. That leaves City with just Harry Winks and Hamza Choudhury, although Boubakary Soumare could return to the fold following his loan spell at Sevilla.

Moder, a versatile midfielder, would therefore strengthen Cooper’s options in that area. After missing 18 months with a torn ACL, the 25-year-old returned to action last November and made 17 Premier League appearances for Brighton last season, although only six of those outings were starts.

Would you be happy with Dewsbury-Hall going to Brighton and Moder going the other way? Let us know in the comments section below.