Leeds United will be “at risk” of breaking the proposed new spending regulations if promoted back to the Premier League, according to i News.
The outlet reported on their website on March 12 that, based on modelling by finance expert Kieran Maguire, the Whites may violate the new regulations, which would limit clubs’ ability to spend a percentage of their revenue on wages and transfers, as opposed to the current system, which has a £105 million limit for allowable losses over a three year period.
According to Maguire’s projections, using 2022/23 values, Leeds United would be almost £11 million over the cap, with i News reporting that the club will likely face challenges “especially given they will need to spend” if they return to the top flight from the second tier.
According to the Kieran Maguire model, if Leeds United are promoted, they will go over budget.
Assuming Daniel Farke is able to return the Whites to the top division at the first attempt, which is still a big assumption given their good form in the Championship, they may be in for a headache.
Given that Leeds United’s position in the Premier League is critical to the long-term plan and Elland Road projects, the 49ers would almost certainly have been willing to invest on the squad to give them a good chance of competing again in the top division.
Burnley’s troubles this season as second-tier winners demonstrate the need of team investment unless a club is dedicated to a model that will see them move between divisions several times.
The Whites would undoubtedly benefit greatly if they could bring in some nice money for all of the players that left on loan following relegation, but aside from the £20 million already paid to Bournemouth for Luis Sinisterra, things don’t appear promising.
Even Marc Roca’s expected permanent move to Real Betis appears to be in jeopardy, putting the club’s earnings under strain to cover the costs of a return to the Premier League if the new restrictions go into effect this summer.
The current rules haven’t worked out well for Leeds United, with all three clubs that finished ahead of the Whites last season now in violation of them, but sanctions have come too late to be of any use, even though no charges have been levelled at Elland Road, and the new ones could be even worse.
