Promotion bonuses connected to first-team contracts will put Leeds United on the verge of breaking Profit and Sustainability Rules if they are activated this summer, according to Football Insider.
The Yorkshire club is vying for promotion this season, with Daniel Farke’s side now third in the table with three games remaining.
According to Football Insider, promotion this season would result in £15 million in promotion bonuses, which are included in first-team contracts.
If the incentives are paid before the June 30 deadline, they will be included in the club’s PSR calculations for the fiscal year 2023-24.
Leeds have successfully met PSR this season, despite a £34 million loss in their 2022-23 accounts.
Leeds United’s £15 million clauses could lead to points deduction.
Due to their one-year sojourn in the Championship, Leeds can only lose a maximum of £83 million over three years, finishing in the fiscal year 2023-24.
After losing £37 million in 2021-22, the club cannot afford another year of huge losses or risk a points deduction for violating financial laws.
When Leeds were last promoted in 2020, they lost £66 million.
Leeds may be compelled to balance their budget over the summer to offset the money spent on promotion bonuses.
According to Football Insider, if Leeds is promoted, they will be compelled to sell key players in order to avoid future financial problems.
