Leeds United fans left fuming after Premier League FFP announcement, they ‘have been screwed’
As the summer transfer window draws near, Leeds United must adhere to some financial constraints, even though it’s an exciting time for the team with lots of money to spend.
Since 2017, Leeds United has failed to record a single year of profitability. The excess was less than £1 million even during that season. In 2020, they had to spend money to return to the Premier League, and in their subsequent seasons, they spent poorly in the top division until being relegated again in 2023.
The solution isn’t that straightforward because Leeds must take the financial regulations into account as they go up, but there has been a lot of Leeds investment suggested to help with that as well, with a £1 billion 49ers and Red Bull plan recently unveiled.
Leeds fans react to Leicester City PSR breach news
Leeds may be reporting losses, but since they have so far stayed within the line in recent years, they are not in violation and will not be penalised for any of it. On the other hand, several teams have been punished or are currently being punished for breaking financial regulations.
A few others are treading very carefully, while Everton and Nottingham Forest have been fined for violating the Profit and Sustainability Rules (PSR). However, one more of those joining both is Leicester City, who were just demoted.
It is safe to say that Leeds supporters are not pleased that nothing has been done as of yet. “Clubs that are doing this get punished about time, and we keep getting screwed over because of it,” one person stated.
“This isn’t being bitter over Leeds’ drop in 22/23,” another person remarked. But what three teams are there now? Who broke the rules and finished ahead of us, implying that we would have stayed up if they hadn’t? Doesn’t it make sense to include it in any penalty they are required to pay? to give it to the affected clubs directly?
Two more replies favoured making fun of the circumstance. “I predict a points deduction 🎶” and “I Predict A Meltdown😂😂 #LUFC” both expressed similar thoughts.
How much can Leeds United spend in the Premier League?
Our football finance expert, Adam Williams, gave Leeds United News an inside look at their summer expenditure predicament. As long as their ownership is responsible for the majority of the deficit, Premier League teams are permitted to lose up to £105 million during a rolling three-year period.
That £105 million is deducted, though, for each year a club participates in the Championship. The EFL raised the permissible loss to £41.5 million to reflect growing utility costs, however it was previously £39 million.
Therefore, you are permitted to lose £35 million for each year that you are in the Premier League. However, it covers little over £13 million for each Championship year. For the past three seasons, Leeds has been in the second division for two of them.
Even though Leeds will have to pay players significantly more next season in the Premier League, spend a lot more on hiring, and set aside more money for operating costs, they will still be able to make £61 million.
That was before $120 million worth of shares were recently invested in the club by shareholders, which allowed for larger losses and allayed some of their financial worries. However, it is yet unclear how much leeway they have gained from it.
