Where Leeds United stand in the PSR battle and Premier League limit on transfer deadline day — Leeds Live 1/9/25

Leeds United are battling against tighter limits than 18 other Premier League rivals

Whether we like it or not, finances have now become a crucial part of the football jargon. Supporters are now forced to remember three-letter accounting acronyms such as FFP and PSR. For many, VAR was enough.

The reality is Leeds United figures are having to abide by these spending regulations, which seem to disproportionately restrict newly-promoted clubs. With the gap ever-growing between the EFL and the Premier League, such teams are requiring wholesale revamps.

Despite winning the Championship with 100 points and 95 goals, Leeds are no different. New arrivals have crept into double figures, yet there is a very real sense that this may still yet not be enough.

United are hunting for new attackers before 7pm tonight, with Daniel Farke making it very clear that more is needed up top. However, club figures are said to be mindful of crossing PSR limits given the amount spent this summer. Here is a quick explainer.

What is PSR?

The acronym stands for profitability and sustainability rules, which is similar - albeit not quite identical - to UEFA’s FFP, or Financial Fair Play. But its aim is the same.

The reason why it was brought in was to ensure the financial stability of a club, so an owner does not incur mass losses and send it into administration. UEFA first established its parameters for the 2011/12 campaign before the Premier League devised its own version a few years later.

Where do Leeds stand?

This is the sticking point. Leeds have the joint-lowest loss cap in the Premier League at £61million. That’s because every PSR cycle accounts for three seasons, including the current one. In the case of Leeds, and most clubs, each rolling period starts on July 1 and ends June 30.

Each campaign in the EFL allows losses for up to £13m per season. In the Premier League this is £35m. Leeds, like Sunderland, spent the past two seasons in the Championship before promotion, hence why their totals sit at £61m.

Burnley only spent one season back in the EFL so have a higher cap of £83m. For all other non-promoted clubs, given all of the last six promoted teams went straight back down, their loss limit sits at £105m due to having three full seasons in the top flight.

What’s the feeling inside the club?

How close Leeds are to the PSR line is something only the club will know but United have spent more than £100m this summer with barely £10m or so brought in via sales and loan fees.

Now, the cost of a player can be spread over the length of a contract - for example, a £10m player on a four-year deal sees a club pay out £2.5m per season. This is called amortisation.

Previous deals will have followed this system as well as this summer’s transfers. United figures are mindful of the PSR red line as a result of the expenditure and lack of prominent sales.

That could, albeit not certainly, mean that a loan deal is sanctioned for an 11th signing, perhaps with an option to obligation to buy clause. A purchase is not out of the question, though.

High ranking sources have outlined that Leeds could sell players before the current accounting cycle ends on June 30. For instance, if Mateo Joseph does well at Mallorca, that could bump his price up, while Werder Bremen could opt to trigger Isaac Schmidt’s buy-out clause.

There are risks to this ploy, given clubs may not wish to risk their own PSR stance and given that sometimes players only wish to decide their futures after a World Cup, with next year’s tournament continuing past the June 30 ‘deadline’.

Potential PSR risks

Some may look at what Nottingham Forest did a few seasons ago and argue that breaking the rules is worth the gamble. After all, they very nearly made the top five last term.

The reality is that it takes an audacious owner to do that and one willing to risk relegation. If any club is found to have breached regulations, they could be hit with a six-point penalty, which now seems to be the standard ruling.

For a club such as Leeds who are fighting tooth-and-nail for every point, that could be disastrous. As a sidebar, Manchester City’s charges are in a different realm.

They are alleged to have not just broken the rules but wilfully circumvented them and provided false financial data. All punishments remain on the table in that regard, given its unprecedented nature.

The future of PSR

The Premier League is looking to revamp the structure of the PSR regulations with it evident that newly-promoted clubs are being hampered by the current set. A revised system has been shadowing the current rules for the past season.

A vote to formally amend and implement the new rules has been delayed, probably until next year. One proposal is to align it with a club’s revenue, with a 70% spend cap for those in European competition and 80 or 85% for those not. Nothing has yet been finalised but change is clearly necessary.