‘Leeds get massive boost’ after £60m+ reveal – Stefan Borson
Leeds United are looking to get on top of their financial situation while continuing to fight for promotion back to the Premier League.
The Yorkshire giants were believed to be close to breaching the profit and sustainability rules (PSR) for 2023-24 before selling Archie Gray to Tottenham for £30million.
Under the Premier League’s PSR rules, top-flights clubs are allowed to lose £105million over a rolling three-year period.
But the cap drops from £35million a season in the Premier League to £13million in the Championship, meaning Leeds have been forced to closely monitor their spending.
Leeds have released their latest accounts for 2023-24, revealing their overall turnover fell from £189.7million in 2022-23 to £127.6million.
The club’s losses increased from £33.7million to £60.8million in 2023-24 as they continue to toe the financial fair play (FFP) line.
However, Leeds cut their wage bill by £62million from £146million to £84million last season following their relegation.
Finance expert Stefan Borson exclusively told Football Insider the club’s player relegation clauses have made a “massive” difference to their financial situation.
Daniel Farke’s side currently sit top of the Championship table on goal difference ahead of Burnley, while third-place Sheffield United are two points behind the league leaders.
Leeds could face new financial blow
Borson insisted Leeds could face a financial issue if they fail to achieve promotion this season.
He told Football Insider: “What they have done, and all of the relegated teams have done well, is that they’ve got their wage bills to correct.
“They must all have the players on big relegation clauses that reduce the wages sort of in half, which makes a massive difference, even Leicester did that.
“Leicester ended up with a wage bill that dropped from over £200million to £107million for the season that they had in the Championship.
“The positive thing from that perspective is if you’re dropping the wage bill in half and you’re getting a parachute payment, which is covering half of what you would get at the bottom of the Premier League and you’re also performing well so that you’re selling out your 46 games in the Championship, you can kind of make things work because the loss of broadcast revenue from the Premier League is mitigated by the fact that you’ve reduced your wage bill.
“The absolute impact is not actually that great overall. The problem is when it goes a number of seasons. It’s fine for one season, maybe even for two.
“When you get into the third season, when you start to lose the parachute payments and you start to have a change of commercial interest, players want to leave as well because they’ve been paid less, that’s when it starts to become more of an issue.”
| Position | Club | GP | Pts | GD |
| 1 | Leeds United | 41 | 85 | +52 |
| 2 | Burnley | 41 | 85 | +43 |
| 3 | Sheffield United | 41 | 83 | +25 |
Leeds to sack Daniel Farke after promotion blow
Recruitment expert Mick Brown told Football Insider Leeds will sack Farke if they fail to achieve promotion from the Championship for a second consecutive season.
The German manager came under pressure following last season’s play-off final defeat to Southampton, but the Leeds players remained behind Farke and he was handed a second chance.
The expectation of the board this season is promotion back to the Premier League as they find themselves firmly in the race again.
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