So Sad:Football Financial expert reveals why Leeds might hit Point deduction if …

Leeds United faced relegation last season, and three of the four teams they faced were punished for violating PSR regulations.

 

 

 

Everton was the first team to be charged and subsequently docked 10 points; however, that total was later lowered to six after an appeal. Last month, Nottingham Forest also lost four points.

The Everton team faced another setback with an additional two-point deduction last week, while Leicester City may begin

the next season with a deficit if they make a return to the Premier League. Jamie Carragher suggests that both Leeds and Southampton have legitimate

reasons to feel aggrieved. However, it’s worth noting that certain aspects of Leeds’ financial situation are also concerning. Football finance expert

Kieran Maguire disclosed last week that Leeds have an outstanding debt of £190 million in unpaid transfer instalments, a revelation that astonished Alan Brazil.

Towards the end of last week, Phil Hay reported that Leeds expressed

confidence in their compliance with both the Premier League and EFL’s PSR

regulations based on their recent financial reports. However, during a talkSPORT segment yesterday, another

expert in football finance, Stefan Borson, outlined reasons why Leeds might not meet the PSR requirements if they secure promotion.

Leeds currently occupy the third spot in the Championship standings and still

have a chance to secure promotion to the Premier League either automatically or through the play-offs.

Typically, individuals associated with the club would be entitled to receive

promotion bonuses if Leeds achieves promotion, with Borson estimating this figure to be around £20 million.

When discussing Leeds’ financial situation in the event of promotion, Borson suggested that the club might encounter difficulties meeting PSR

requirements due to the substantial payout for promotion bonuses. This scenario could potentially result in a

points deduction, as Leeds has experienced a decrease in revenue this season rather than the expected increase.

So, paradoxically, achieving promotion could lead to PSR failure and subsequent

penalties in the Premier League, despite the fact that promotion itself triggered the failure.

If Leeds were to remain in the Championship, it’s evident that they would need to offload some key players

to ensure compliance with PSR. This would likely involve not only some returning loaned players but also members of the current first-team squad

such as Crysencio Summerville, Archie Gray, and Willy Gnonto, who are expected to garner interest from other clubs.

However, if Borson’s recent assertion holds true, it underscores the inadequacy

of the current PSR regulations. Leeds would essentially be penalized for rewarding their players and staff for

their on-field achievements, which runs counter to the original intent of these financial regulations.

 

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