'It's scaremongering' Leeds United finances explained as fire sale misconception debunked — Leeds Live 5/6/24
Leeds United are being seen in some quarters as facing a huge PSR problem that will mean the sale of all their best players
There seems to be a perception among rival clubs and many
supporters outside of Yorkshire that Leeds United are in financial disarray.
Somewhat of a fire sale appears to be expected with Leeds needing to move on a
host of players after missing out on an immediate return to the Premier League.
The reality of the situation appears to be lost among the
misinformation and rumour that so often dominates a summer transfer window.
Let's no sugar-coat things, Leeds have had sizeable losses, last season's
continual list of loan departures highlighted the poor recruitment strategy and
structure of contracts, and missing out on being back at the big show will cost
Leeds to the tune of well over £100m.
But the dismantling of the squad and sale of all the club's
prized assets to save it from falling foul of financial rules is just not
correct, and while departures are expected, so are incomings. After totalling
losses of over £30m for the past two seasons, Leeds need to address that fact
to comply with the new Profit and Sustainability Rules, we know that!
The losses were moderately large, a significant amount of
money pushing £200m is still owed in transfer fees, with a reported £70m to be
paid this summer, but let's not forget Leeds have already raised money in
player sales and now boast what's believed to be the biggest shirt deal ever
signed by an EFL club, which will help significantly.
Crysencio Summerville will leave the club this summer, it's
almost a guarantee as the player looks to make a move to not just a Premier
League team, but one playing European football. Leeds won't stand in his way,
and the likelihood is the profit of that sale alone may be enough to balance
the books for Leeds, who as chairman Paraag Marathe has already stated, will
walk a fine line when it comes to PSR as they try to push as hard as they can
to spend what is possible on players and be as competitive as they can be.
Speaking this week, football finance expert Kieran Maguire
has backed up the position that Leeds' financial plight appears to have been
portrayed incorrectly. "I am surprised at the amount of PSR attention
given towards Leeds,” Maguire told Football Insider.
"Leeds in 2024-25 will also see their allowable PSR
losses drop down to £61million after spending two seasons in the Championship.
But they have had some significant player sales and so I feel there is an
element of scaremongering here. It is likely that they will have to sell before
the June 30 cut-off date but they have plenty of sellable assets at the
club."