Leeds United could have violated the profit and sustainability criteria (PSR) if they had been promoted back to the Premier League last season.
That is according to finance expert Stefan Borson, who told Football Insider exclusively that if Leeds had earned promotion, they would have had to pay £20 million in player bonuses, potentially breaking the PSR rules.
The West Yorkshire club reported a loss of £33.7 million in their most recent 2022-23 reports, following a loss of £34 million in 2021-22.
Leeds’ fall to the Championship in 2023 left them in financial trouble, and Daniel Farke’s team almost missed out on promotion to the Premier League previous season.
Under the PSR regulations, the club can lose up to £61 million over three years, finishing in 2024-25.
Leeds United might have faced a points deduction with promotion.
Despite the heartbreak of not being promoted back to the Premier League, Borson believes it may have rescued Leeds from a points deduction next season.
He told Football Insider: “The one difficulty I believed Leeds would have was that if they got promoted, it could have resulted in a PSR breach.
“They would have ended up owing the players a £20 million promotion bonus.
“That would have all gone into the 2023-24 accounts, despite the fact that all of the benefits will be realized next year in the Premier League.
“They could have been in a strange scenario where they would have violated PSR if they were promoted.
“But because they haven’t got promotion and didn’t have to pay the bonuses, they might be okay.”
