What are the rules on transfer window player swaps?

The recent transfer window swap between Everton and Crystal Palace involving players Dwight McNeil and Brennan Johnson has raised questions about the rules governing such unusual transactions. According to the Premier League regulations, swaps like this are permitted but must comply with specific guidelines.

Firstly, each swap is treated as two distinct transfers, which are part of the assessment of the Premier League squad cost ratio (SCR) regulations. For instance, Johnson was bought by Palace for £35 million, and his valuation in the McNeil deal would impact Crystal Palace's SCR calculations. For the transfer to be considered neutral on the accounts, Johnson must be valued at around £30 million. If his valuation is lower, such as £20 million, it could result in a £10 million loss for Palace.

Furthermore, these swaps must also pass the Premier League's fair market value (FMV) checks. Introduced in 2021, FMV regulations provide a robust mechanism to maintain financial stability, integrity, and competitive balance in the league. External valuation companies assess factors like a player's age, performance level, and compare it to similar players to determine if the deal aligns with market value. The Premier League ultimately makes the final judgment on whether the swap meets FMV criteria.

In summary, while player swaps between Premier League clubs are allowed, they must adhere to SCR regulations, pass FMV checks, and ensure the transaction is financially neutral or beneficial for both parties.