Finance expert issues £20m warning to Leeds United | OneFootball

Football finance expert Stefan Borson has issued a warning to Leeds United about their profit and sustainability rules (PSR) compliance.

The Whites revealed their latest accounts earlier this month, announcing a loss of £33.7m for the previous campaign.

The figure is much lower than the £90 million loss confirmed by rivals Leicester City for the same period, with the Foxes in danger of receiving a points deduction penalty for an alleged breach of PSR.

However, the extent of their mismanagement was laid bare when their figures were compared to the rest of last season’s Premier League, with the Yorkshire outfit spending far more than their 19th place finish deserved.

It was also revealed that Leeds still owe up to £190 million in outgoing transfer fee instalments.

Football finance expert issues PSR warning to Leeds

Borson has warned that gaining promotion to the Premier League could push Leeds towards a PSR breach due to the bonuses players will receive for guiding the club out of the Championship.

He believes it could cost up to £20 million to the club, which would put them in danger of failing to comply with the Premier League’s finance rules.

“Leeds United, if they get promotion this season, may well fail PSR because of a £20 million hit for promotion bonuses,” said Borson, via Talksport.

“But, of course, this season they have not had the countervailing revenue increase.

“They have actually had a revenue decrease.

“So, ironically, by getting promotion, they could fail PSR and be punished in the Premier League even though the only reason they failed is because they got promotion.”

Daniel Farke’s side are far from guaranteed to earn promotion to the Premier League this season, with just a few games remaining in the regular term.

Leeds United league position

Leeds are currently third in the Championship table, with just three games to go.

The gap to second place Leicester is just one point, but Enzo Maresca’s team has a fixture in hand over their promotion rivals.

Ipswich Town lead the way at the top of the standings, holding a two-point advantage over the Whites.

Farke’s team has struggled for form in recent weeks after making an electrifying start to 2024.

One win in their last five games has seen them fall out of the automatic promotion spots, with Southampton in fourth now just three points behind.

Leeds finish the season with games against Middlesbrough, QPR and the Saints.

Leeds will need to manage their finances closely if they seal promotion

The club will still have time in the summer to resolve their financial position if promotion is a threat to their PSR compliance.

If they can offload players by 30 June then they should be able to help raise funds and improve their standing in relation to the financial rules.

The cost of failing to gain promotion could still be far more severe, so this should be a manageable situation for Leeds, especially with so many players returning from loan this summer.

Those are the players that should be on the chopping block to sell immediately if promotion is secured, which should ease the pressure on their PSR compliance.