AliousFinancial expert Stefan Borson has warned that Leeds United could be nearing financial rule violations if they haven’t significantly cut their wage expenses since being relegated from the Premier League.
Borson, speaking exclusively to Football Insider, explained that Leeds’ spending allowance will decrease each year they remain in the Championship after failing to secure promotion last season.
Before selling Archie Gray to Tottenham for £30 million, Leeds was thought to be close to their permitted loss limit for 2023-24.
They’ve since sold Crysencio Summerville to West Ham and Georginio Rutter to Brighton, bringing in an additional £65 million.
Under Premier League profit and sustainability rules (PSR), top-tier clubs can lose £105 million over a three-year period.
However, this limit drops from £35 million per season in the Premier League to £13 million in the Championship, requiring clubs like Leeds to carefully monitor their spending.
Borson suggests that Leeds’ PSR situation will largely depend on how much they’ve reduced their wage bill in the past year.
He noted that Leeds was very close to breaching rules in 2023-24, which led to the sale of Archie Gray.
The expert pointed out that Leeds’ allowable losses will continue to decrease the longer they stay in the Championship.
For the 2024-25 season, their PSR cap will be £61 million (£35 million plus two years at £13 million each), which Borson describes as “quite a low cap.
“Borson emphasized that if Leeds’ wage bill in the Championship last season was similar to their Premier League wage bill, they could be running very close to the PSR limit.
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