Kieran Maguire issues '£50m' claim as Leeds United could be forced into unwanted payout
Plans to take increase solidarity payments between the Premier League and the Championship would hit Leeds United hard.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about the distribution of wealth in the English football pytamid.
The Times reported on Monday (25 April) that the Government has told the Premier League to increase payments to the lower divisions.
It is understood that the boost in solidarity payments will be worth hundreds of millions per season to the EFL.
But it has not yet been determined whether the cash injections will be based on merit or on a flat line basis.
Maguire claims that Leeds would fall further behind the so-called “big six” if the Premier League took, for example, “£50m” off each team.
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“It’s a double-edged sword,” he told Football Insider‘s Adam Williams.
“The danger with the proposals, if they are done on a flat line basis, is that they will decrease the competitive balance in the Premier League.
“However, it will increase competitive balance in the Championship. That is very much the tail wagging the dog.
“The reason the Premier League is so popular with international audiences is that the likes of Leeds can challenge anyone else.
“If it is going to be X amount per club, that is going to further expand the differences between teams financially.
“Man City have a £400m income advantage over Leeds, for example. That means they have 3.3 times the income of Leeds.
“If we were to take, say, £50m from each club, that goes from 3.3 to 4.3.
“So, on a proportionate basis, it will be the non-big six clubs that suffer more of the distribution is going to be on a flat basis.”
Leeds posted a pre-tax profit of £26m for the 2020-21 campaign.
It was only the second time the West Yorkshire club have recorded a surplus in the last decade.