If Nottingham Forest sells both Moussa Niakhate and Orel Mangala to Lyon today, they should be able to stay under the profit and sustainability (PSR) limit.
According to financial expert Stefan Borson, who spoke with Football Insider exclusively, Lyon will have to disclose all the financial details of the deals because they are listed on Euronext, even though they agreed to sign the Forest duo.
After receiving a points deduction the previous season, Forest is reportedly getting close to their permissible losses cap once more. The club must turn a profit of £20 million before filing its financial statements on Sunday.
After spending the second half of the previous season on loan, Lyon have reached a deal to sign Mangala permanently, according to a report by Football Insider on June 12.
But Forest had already factored the deal into their projections for 2023-24 as the expectation was the transfer would proceed after terms were agreed when the Belgium international made the initial loan switch earlier this year.
Niakhate is also closing on a move to Lyon after a £20million deal was agreed between the two clubs, but neither deal has been officially announced yet.
Forest are believed to be close to their allowable losses limit again after being handed a points deduction last season, with the club needing to make £20million in profit before submitting their accounts on Sunday.
On June 12, Football Insider disclosed that following Mangala’s loan stint at the French club for the second part of the previous season, Lyon had reached an agreement to purchase the player permanently.
However, when the Belgium international completed the first loan switch earlier this year, it was expected that the transfer would go through once terms were agreed upon, therefore Forest had already built the trade into its predictions for 2023–2024.
After a £20 million deal was reached between the two teams, Niakhate is also nearing a move to Lyon, albeit neither agreement has been made public yet.
With two sales, Nottingham Forest may escape losing points.
According to Borson, if the deal goes through before Monday, the Ligue 1 team will have to release all the specifics, and that will determine if Forest has passed PSR.
If both moves go through, Borson told Football Insider, “They will probably make PSR.”
“The approximate amount they required was £20 million. However, I believe that was presuming that Mangala was finished and that it was also for Lyon.
Since Lyon is listed on Euronext, we should be able to find out precisely what they accomplished before June 30th on Monday.
“The consequences of being listed is you have to make announcements about the transfers you do, and you also have to announce the details of those transactions in detail.
“We have their announcement, so we know exactly what they paid for Mangala when they made the deal in February.
The release states that a £10 million loan was provided, with a £15 million purchase option.
“It seems likely that they will pay the £15 million required to retain Mangala and that they will have to make the announcement on the first working day after June 30.
“With that, it’s a question of watch this space as they need to confirm it. The purchase agreement for Niakhate will operate similarly.
“If they close both of those deals, I think Forest will pass PSR.”
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