Why Leicester City want Kiernan Dewsbury-Hall swap deal as Chelsea transfer deadline approaches

It’s been a whirlwind 24 hours for Leicester City and Kiernan Dewsbury-Hall.

Due to concerns over the Foxes’ financial regulations, his exit before the end of June was always on the cards. However, transfer rumors have been sparse, indicating that his future will not be determined until July or August.

But at the eleventh hour, Dewsbury-Hall have been targeted by Chelsea, who are reportedly set to offer Leicester City a few players in return. So with that being said, football.london have gathered everything you need to know about the 25-year-old’s situation.

What is the last one?

According to Fabrizio Romano, Chelsea have approached Leicester City for Dewsbury-Hall with a plan to include more players in a formal proposal. The report states that David Datro Fofana and Cesare Casadei have been mentioned as potential importers for the midfielder’s signature.

Romano adds that Dewsbury-Hall, whose contract at the King Power Stadium expires in June 2027, wants to join the west Londoners after a similar exchange deal with Brighton collapsed recently.

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How does the Chelsea deal benefit him?

Even if a deal is done with Chelsea, it won’t be a direct swap. Leicester City will receive a fee for Dewsbury-Hall and, as an academy graduate, the amount goes into the books as pure profit.

This is of significant importance to Foxes as they struggle to comply with Profitability and Sustainability (PSR) rules. The Championship’s governing body had long predicted Leicester would breach the PSR, anticipating 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 unclear how far the Foxes are, a deal for Dewsbury-Hall would almost certainly put them in the clear. The acquisition of Fofana and Casadei would not put them in financial jeopardy either because of the way transfers are viewed in relation to PSR.

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

For example, if Dewsbury-Hall is sold for £40m, as an academy player who is on the books for next to nothing, Leicester immediately get all that profit in their accounts. If Casadei were to join the Foxes for £15m and signs a five-year deal, only a fifth of that, £3m, will go into the accounts this year.

If the Foxes 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 Leicester have to complete the deal to meet the PSR for 23-24 then yes it has 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 is not completed by Sunday evening, it does not necessarily mean that Dewsbury-Hall will not join Chelsea.

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 the King Power Stadium. But equally, he hinted that he may not have total control over his future.

There were reports that if he were to leave Leicester, he would only be interested in a move to Chelsea. The Premier League has issued a warning that it will monitor these “exchange offers” to ensure they reflect the correct market value. If the fee is deemed inflated, the Blues could be forced to return some of the money.

Why would Leicester be interested in Fofana and Casadei?

It’s possible that by helping Chelsea out and signing one or two of their players, the Blues might be inclined to pay a bit more for Dewsbury-Hall than they would normally pay, thus helping Leicester’s PSR case. In addition, the Foxes are in dire need of reinforcements.

Dewsbury-Hall could be the fourth central midfielder to leave the club this summer. Dennis Praet was released on a free transfer, Yunus Akgun returned to Galatasaray after his loan spell, while Wilfred Ndidi has yet to commit to a future at the club.

That leaves Leicester with just Harry Winks and Hamza Choudhury, although Boubakary Soumare could rejoin the squad after his loan spell at Sevilla. With Datro Fofana and Casadei at the King Power Stadium, the Foxes are well prepared for the new Premier League campaign.