Kieran Maguire verdict on Man City complying with FFP if they sign Grealish and Kane
Man City could afford to sign Jack Grealish from Aston Villa and Harry Kane from Tottenham and still comply with financial fair play rules.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about both players’ possible moves to the Etihad this summer.
This site revealed on 31st July that City are lining up a medical for Grealish as they look to finalise a £100million move.
City are also pursuing Kane but Daniel Levy has, according to the Sun on 23rd July among others, slapped a £160m price tage on the 28-year-old.
But Maguire claims that a £260m transfer bonanza is not out of the question for City this summer.
“It is a staggering amount of money,” he told Football Insider correspondent Adam Williams.
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“I think there would have to be movement in both directions. The way that FFP works is that it’s based on a profit model.
“If they signed both of them, they’d both go on a five or six-year deal. So it’s the amortisation cost you’ve got to look at.
“If you’ve got £260m spread over six years, that comes down to about £45m-a-year.
“But when you sell a player on the other hand, all of the profit is immediately taken to the profit and loss account.
“So if they sell, for the sake of example, Raheem Sterling for £80m, he has been there six years now so his value in the books will be something like £5-10m.
“The difference between his book value, which is cost minus amortisation, and the sale price, all of that is taken to your proft and loss account immediately.
“City are now selling lots of players we’ve barely heard of in that £8-20m bracket.
“So If you sell two or three of them then it’s not impossible to bring in both Grealish and Kane and be within the rules.“