"My understanding is" - Phil Hay gives Leeds United PSR update amid Leicester City worries | OneFootball

Journalist Phil Hay has given an update on Leeds United's PSR (Profit and Sustainability Rules) update as Leicester City look set for a points deduction for breaching spending rules.

Sky Sports have reported that the Foxes could end up with a points deduction next season for breaking the Premier League's PSR rules. These rules allow for clubs to lose up to £105 million over a three-year period, but Sky Sports expects Leicester's accounts to reveal that they went over this threshold. They could receive their punishment as early as next week.

Unlike Everton, and potentially Nottingham Forest, City would be handed their punishment next season. The decision to fast-track financial breaches was voted on at the Premier League's AGM last season, but, because Leicester were relegated last season, these new rules don't apply to them.

Regardless of what league they are in, Sky Sports understands that they could start the 2024/25 campaign on a negative points tally.

Leeds were relegated with the Foxes last season, and questions have been raised over whether they may have gone over the edge with their spending. Hay, of The Athletic, has provided an update on the financial situation at Elland Road.

Phil Hay's Leeds United PSR update

The journalist was on the Square Ball podcast, and he weighed in on the Whites' PSR situation.

"My understanding is, without the oversights of the accounts or calculations, is that Leeds have always been compliant with PSR," said Hay.

"I don’t think by a massive margin, but from what I was told, expediting the Sinisterra deal to Bournemouth was in no small way to get money in to stay the right side of that line.

"We have been told all along that we have been [on the right side]. But it is no secret that if Leeds don’t go up this season, they will have to cut the cloth and balance the books."

Promotion to the Premier League is imperative for the growth of Leeds

If the Whites finish in either of the top two spots in the league, or win the play-offs, they can expect to receive anywhere between £135 million and £265 million in increased revenue, as per Deloitte. Those figures are based on the premise that the team in question does not come straight back down to the Championship.

Regardless of whether they would be able to stay up, just getting back to the Premier League would help them so much financially, as Hay alluded to. The increase in money from TV rights deals, and all the other benefits that come with being one of the top 20 teams in the English football pyramid would be a massive boost for the club.

With 10 games to go, Leeds are two points off the automatic promotion spots, which are currently held by Leicester and Ipswich Town.

Even if they weren't to get into the top two, they are favourites to hold the top spot of the play-off places, meaning that they would take on whoever finishes sixth in the Championship. This was the route that Luton Town took to get to the top flight last season.

If Leeds get promoted this season, it would give themselves the best opportunity to fully re-establish themselves as a Premier League team. But, if this chance goes, begging, then they could become stuck in the second tier for years to come.