Leeds United news: Borson drops points deduction verdict after £13m reveal
Leeds United could be close to breaching the spending rules if they haven’t managed to significantly reduce their wage bill since they were relegated from the Premier League.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider the West Yorkshire club’s spending allowance will decrease every year they remain in the Championship after missing out on promotion last season.
Leeds were believed to be close to their allowable losses limit for 2023-24 before they sold Archie Gray to Tottenham for £30million.
Daniel Farke’s side have also sold Crysencio Summerville to West Ham and Georginio Rutter to Brighton, with those deals raking in a further £65million.
Under the Premier League’s profit and sustainability rules (PSR), 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 clubs like Leeds need to closely monitor their spending.
Leeds United’s potential PSR breach dependent on wage bill
Borson suggested Leeds’ PSR situation will largely depend on how much they have reduced their wage bill over the past year.
“Leeds were obviously very close to breaching in 2023-24,” Borson told Football Insider.
“That’s why they ended up selling Archie Gray before 30 June, but also just after.
“I suspect they were just okay.
“The thing we don’t know about Leeds is where their run rate is on their wage bill in the Championship.
“If their wage bill was anything like it was in the Premier League in the Championship last season, then they really will be running very close to the PSR limit.
“If you remember, when you have had a season in the Championship, the PSR limit is not £105million.
“You lose £22million in each season that you are in the Championship. It goes from £35million a season to £13million.
“For the 2024-25 season, their PSR cap will be £35million, plus £13million, plus another £13million.
“They are starting to really have quite a low cap.”
In other news, Leeds work on ‘last-gasp’ Ilias Chair signing.
For more Leeds United and exclusive news, follow us on Facebook or join our brand new WhatsApp Channel for instant updates to be sent straight to your phone.