Kieran Maguire: Leeds United braced for £150m blow after ‘huge’ FFP news from Premier League HQ
Clubs competing in the Champions League would have a £100-150million advantage over Leeds United if the Premier League introduces a new revenue-based Financial Fair Play system.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the top flight’s reported plans to mirror Uefa’s new spending controls.
Uefa announced in April that a new revenue-based system would replace the old Financial Fair Play model, which allowed clubs to lose approximately £25m over a rolling three-year period.
The new mechanism, which will be phased in from next season, instead permits clubs to spend no more than 70 per cent of turnover on wages, transfers and agent fees.
Per The Telegraph last Tuesday (30 August), the Premier League is now ready to introduce a similar system with a higher percentage cap.
Leeds have lofty ambitions under the dual ownership of Andrea Radrizzani and the San Francisco 49ers.
But Maguire argues that the new FFP system would act as an anchor in their bid to break into the Premier League elite.
“If the Premier League follows the Uefa rules with regards to financial sustainability, a higher percentage of wages to income is feasible,” he told Football Insider’s Adam Williams.
“That is likely to be the case with maximum acceptable losses, as we see here. This will act as a continual glass ceiling for clubs such as Leeds who want to challenge the established elite.
“That is because if you’re in the Champions League, you have got an additional £100 to £150m coming if you progress to the final stages.
“If you take 70 or 80 per cent of that, that means you can spend an extra £80 to £100m on wages. That gives clubs a huge advantage.”
In other news, Leeds United set sights on January Ben Brereton Diaz deal after new development