Championship teams have reached an agreement that might assist Leeds United financially, in a move that has perplexed the Premier League.
The Daily Mail claimed [8 May] that second-tier clubs can now lose an additional £2.5 million per year.
This means Championship clubs can incur a £41.5 million loss over three years.
According to Mike Keegan, this was done to replace a “Covid add back” because of the cost of living crisis.
Premier League teams have expressed surprise that the EFL is still demanding a settlement in a “financial redistribution war”.
How might the safety net affect Leeds United?
According to The Athletic, Leeds made a deficit of £33.7 million in the fiscal year 2022-23 despite selling players for a total of £73 million.
The Whites were demoted from the Premier League, earning £189.6 million but incurring an operating deficit of £105 million.
Selling some high-profile names might have helped to ease the shock, but it would still have had an impact.
This allowed them to comply with the Premier League and EFL’s financial guidelines, avoiding sanctions.
Having said that, the Whites can be hopeful that the upcoming new regulation will favor them in the future.
This will provide them with greater financial security if they remain in the Championship and the rule is implemented.
However, this safety net may not be needed in the end, as Daniel Farke hopes to advance through the play-offs this month.
