‘Leeds United face PSR issues after £20m reveal’ – Stefan Borson
Leeds United are likely to face profit and sustainability (PSR) issues after securing their return to the Premier League.
The Yorkshire giants were believed to be close to breaching the PSR rules for 2023-24 before selling Archie Gray to Tottenham for £30million.
Under the Premier League’s PSR rules, top-flight clubs are allowed to lose £105million over a rolling three-year period.
Leeds are set to pay almost £20million in promotion bonuses after claiming the Championship title.
Finance expert Stefan Borson exclusively told Football Insider those bonuses and potential survival bonuses next season are likely to cause PSR issues at Elland Road.
Leeds posted a record-breaking Championship revenue last season despite seeing their turnover fall from £189.7million in 2022-23 to £127.6million.
The club’s losses increased from £33.7million to £60.8million in 2023-24, while their wage bill fell from £145.9million to £84million.
Football Insider revealed on 7 May Leeds will have a £150million budget in the upcoming summer transfer window as they look to remain in the top flight.
Leeds set for significant financial hit
Borson revealed Leeds’ wage bill could increase by around 30 per cent following their promotion.
He told Football Insider: “It would not surprise me at all if they spend £150million.
“But I don’t think it means that they’ve got no PSR issues. I think they will have PSR issues. There are various reasons for that.
“One of them is that they disclosed in their accounts they’ve got a £20million promotion bonus that they’ve had to pay. That’s normal. We know from Ipswich that they paid a £16million promotion bonus to their players.
“It’s not a surprise that it’s £20million. We know Nottingham Forest paid a £21million promotion bonus to their players going back a couple of years. We know that from the PSR decision. So, you have to pay these things.
“Of course, if they were to survive next season, they’ll have a survival bonus probably in their contracts as well.
“You will get to a position where even if they get through 2024-25 PSR okay, 2025-26 might be a challenge because that’s when they’re going to have the impact of the promotion bonus and a survival bonus.
“On top of that, you will see the wage bill go up very substantially between this season and next season because for the same reason that it goes down when you get relegated, built-in wage cuts and things like that, you’ll see the wage bill go back up because a lot of the players will have Premier League wage structures and Championship wage structures.
“So, in the event of a promotion, wages go up by 25-30 per cent, and we know that’s happened with a lot of these teams because we can see in the numbers.”
| Position | Team | Played | Points | GD |
| 1 | Leeds United (C) | 46 | 100 | 65 |
| 2 | Burnley (P) | 46 | 100 | 53 |
| 3 | Sheffield United (PO) | 46 | 90 | 27 |
Joel Piroe hit by crushing blow after Leeds reveal
Football Insider revealed on 6 May Leeds won’t build their attack around Joel Piroe as they look to put a squad together capable of remaining in the Premier League.
The 25-year-old ended the season as the Championship’s top scorer with 19 goals.
However, it is believed Leeds have question marks over Piroe’s ability to make the step up and won’t count on him as their first-choice striker next season.
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