Leeds United will be ‘one of the busiest’ as PSR rule change confirmed, 30th June cut-off key — Leeds United News 5/5/25

-

Adam Williams

In his victory lap of media appearances since Leeds United’s promotion to the Premier League was confirmed, Paraag Marathe has made no secret of his thoughts on the previous regime.

In so doing, the 49ers Enterprises chief has given a window into how the Americans will approach their return to the big time from a financial perspective.

For one, there will be fewer transfers on tick. Leeds owed around £250m in instalments when they were relegated in 2023. The sales that came last summer were therefore both about cash flow and meeting Profit and Sustainability Rules (PSR).

The questions around the future of Daniel Farke suggest that Paraag Marathe isn’t going to make decisions based on sentiment either. Granted, the chairman has now backed Farke, though his hesitancy in doing so suggests that there was at least a kernel of truth to the stories.

The 49ers will also look to grow commercial revenue sustainably, while the plans to redevelop Elland Road are probably tied up with Premier League media income. Meanwhile, the owners are also in the process of taking over Rangers and potentially selling a 10 per cent stake in their NFL franchise.

Marathe has also confirmed that player trading will be the watchword in the transfer market this summer, with new signings expected to be supplemented with sales. As they will have spent two of the last three seasons in the Championship, Leeds’ maximum allowable loss under Premier League PSR is set at £61m for the three-year monitoring period.

That means things will be tight if they are to avoid the fate of Everton and Nottingham Forest, who have been the only clubs hit with sanctions by the Premier League under PSR so far. To do that while spending enough to be competitive will be a hard balance to strike.

Leeds United tipped to make sales before 30th June PSR cut-off

Last summer, there was a second transfer deadline day of sorts for Premier League clubs at risk of breaching PSR.

Aston Villa, Chelsea, Newcastle, Nottingham Forest, Everton and a handful of others came up with a number of accounting sleights of hand to get around the rules, such as a the quasi-swap deals that saw two players trade clubs in separate transactions of roughly equivalent value, creating a short-term profit for the purposes of PSR.

According to football finance expert and former Manchester City adviser Stefan Borson, Leeds could be among the clubs to do something similar before the PSR deadline on 30th June, when the three-year monitoring period rolls over.

‘Leeds appear to have a challenge for Premier League PSR compliance largely because their cap upon return is just £61m (£35m + £13m +13m),’ Borson writes in his Substack.

‘Leeds have sold well to comply in the 2 years in the Championship but ironically the test for 24/25 PSR will be materially hit by the £19.25m of promotion bonuses payable for this season’s success.

‘We know from the Nottingham Forest PSR case that promotion bonuses are neither valid deductions for PSR nor mitigation for a breach.

‘It does appear that the profitable Archie Gray sale has been put into 24/25 (though Spurs recognised the purchase in 23/24) so when added to the sales of Georginio Rutter and Crysencio Summerville, Leeds will have a hefty player trading profit to offset the inevitable operating loss.

‘In short, Leeds will be one of the busiest this June and, in another complexity, will need to address the issue without CEO, Angus Kinnear who joins Everton on 1 June.’

New FFP rule change could affect Leeds

The Premier League and EFL have acted to close the loophole that allowed Leicester City to escape PSR punishment despite having admitted a breach in numerical terms last season. In so doing, they have also removed a potential insurance option for Leeds.

Because Leicester breached PSR in 2021-22, the club argued that their relegation to the Championship meant they were no longer subject to the Premier League rules. Essentially, they slipped between the cracks of the two administrative bodies.

However, the EFL and Premier League have now settled on a joined-up approach that will see each able to charge clubs based on breaches of the other’s financial rules.

Popular posts from this blog

The huge initial fee Leeds are set to receive for Crysencio Summerville’s move to West Ham — Leeds United News 31/7/24

-
Will Butcher West Ham United are closing in on a deal to sign Crysencio Summerville from Leeds United, and Ben Jacobs has shared how much Leeds will receive for the Dutchman. The 22-year-old has been strongly linked with the Elland Road exit door all summer and was targeted as the one big sale Leeds needed to make before the Profit & Sustainability Rules deadline this month. But instead, Leeds sold Archie Gray for £40m to Tottenham. Leeds have since sold five more players in the form of Diego Llorente, Marc Roca, Kris Klaesson and Charlie Cresswell – raking in around £60m in total. But more exits were always likely and Fabrizio Romano reported on Wednesday afternoon that West Ham had agreed personal terms with Summerville, and talks for a fee were ongoing with the Yorkshire side. Now, the story has moved on with multiple sources claiming a deal is done between Leeds and Angus Kinnear’s old club. The Dutchman is expected to sign a five-year at the London Stadium, until Jun...
Read more

Leeds United board break silence after transfer window with statement on upcoming Elland Road development — YEP 2/9/24

-
By Joe Donnohue Leeds United have confirmed supporters' commemorative stones at Elland Road's Centenary Square will be replaced free of charge in a bid to improve their longevity. Beginning next month, Leeds supporters' personalised stones will be replaced with exact replicas, courtesy of a new company, to ensure of a 'much better quality' installation. The work is expected to take around two months to complete. An official club statement confirmed 'three larger stones dedicated to former managers Don Revie, Howard Wilkinson and Marcelo Bielsa' will also be installed, 'similar to those located in Bremner Square', while additional space for supporters to purchase new stones has also been factored into the project. “The club have taken on board recent feedback from supporters on the stones at Centenary Square, and we are really happy that we can now announce that all of the stones will be replaced," chief executive Angus Kinnear confirmed,...
Read more

Leeds United transfer state of play as Whites knock back low bid and assert wing pair stance — YEP 3/7/24

-
By Graham Smyth Leeds United are not actively looking to cash in on Crysencio Summerville and Willy Gnonto and believe any further outgoing transfer business will be done on their terms. The Whites, who sold Archie Gray to Tottenham Hotspur on Tuesday for £40m, expect that there will be continued interest in wing pair Summerville and Gnonto as the summer transfer window progresses. Summerville has been a target for Premier League side Brighton and Hove Albion but their interest has not yet materialised into a bid. The Albion did, however, send a £30m proposal for Georginio Rutter, which Elland Road chiefs rejected. Rutter is not expected to try and force an exit this summer and appears settled at Leeds after a far more positive second season in English football. The sale of Gray has helped put Leeds into a position where they do not need to sell star players and can dictate any moves that do happen. Club sources say they are not actively looking to sell the likes of Summerville o...
Read more