Kieran Maguire has stated that Leeds United’s financial condition will be determined by 49ers Enterprises’ readiness to supply finance if the club does not gain promotion.
The football finance specialist stated that there will be obstacles if Leeds is not promoted, but the 49ers can continue as usual and deal with any concerns as they arise.
It was also stated that there should be no concern about profit and sustainability regulations as a result of player sales, although it would be impossible to maintain the amount of sales that Leeds experienced.
Speaking to the Yorkshire Evening Post [11 April], Maguire explained: “If the club does not rise, there will be challenges, but a lot depends on how much the 49ers are willing to say: ‘We’ll just deal with it as and when, and we’ll provide funding for the club to carry on as usual.'”
“I don’t see any PSR issues, as they did sell players for profit. I don’t think fans should be concerned about a firesale from the standpoint of [compliance with] PSR.
“Overall, the losses are very moderate by PL standards. We witnessed Everton and Leicester lose £90 million, Spurs lose 90, therefore Leeds losing 33 was acceptable.
“Having said that, it was due to huge player sales which allowed them to get to that position – you cannot do that season in season out and expect to perform on the pitch unless you have a production line.”
Leeds United’s FFP update comes following financial news.
Maguire’s statement that the team is now safe from a PSR breach will come as a relief to Leeds fans, given the scenario their fellow relegated club, and title contender, Leicester City, have found themselves in this season.
Leeds may sue Leicester if Daniel Farke’s side fails to achieve the automatic promotion places or advance through the playoffs this season as a result of their profit and sustainability infringement, with the inquiry due to commence.
However, it has been made plain that Leeds’ approach to avoiding a breach this time may not be sustainable. Selling players at such a large volume for high sums cannot be repeated every season, and it is dependent on exceptional players continuing to emerge.
Either you keep the players and venture into muddy FFP waters, or you continue to sell your top players, fail to appropriately replace them, and wind up struggling as a result of their departure. That might be a difficult issue to negotiate.
