Leeds United have already acknowledged they will have to sell players this summer, but when that happens could actually be the crucial factor in their compliance with PSR.
That is because June 30 has now widely become almost a second deadline day in the summer transfer window, as it represents the final day of a specific financial year within football.
Having been the only one of the three relegated clubs not to bounce back to the Premier League at the first attempt, Paraag Marathe was quick to come out and admit some players will need to be sold.
Though Marathe was also adamant Leeds will have money to spend in order to build a squad ready for another promotion push, it is unfortunately going to come at a cost.
Crysencio Summerville, Willy Gnonto, Archie Gray and Georginio Rutter were all touted for potential exits in the wake of Leeds’ play-off final defeat to Southampton last month after strong individual campaigns.
Football finance expert shares whether Leeds need to sell before June 30
LeedsUnited.News have spoken exclusively to football finance expert Adam Williams today about whether Leeds need to make player sales before June 30.
It was reported in the week leading up to the play-offs that Leeds would need to raise £100 million this summer if promotion was not achieved.
Journalist Ben Jacobs has today disputed those claims after speaking to ‘sources’ at Leeds, though did acknowledge some cash will need raising.
Leeds have £73 million in unpaid transfer instalments that are owed by the end of this month and while Luis Sinisterra and Tyler Adams will contribute heavily to that figure, Williams says the club are in need of more by that cut-off point.
He said: “Leeds won’t release their accounts for 2023-24 until early next year it looks likely they will post a loss again, even with the cash from Luis Sinisterra and Tyler Adams taken into account.
“More big earners left last summer and the club did shield themselves against the impact of relegation with step-down clauses in players’ deals, but the wage bill will still be enormous for a Championship club.
“Then there’s the £190m they are due to pay in transfer instalments, of which more than £73m is due before the end of the month.
“And with only 18 days to go until the end of the current Profit and Sustainability, that means sales will likely be needed imminently in order to avoid a breach. That would tally with what Paraag Marathe has said about player trading.”
Will Red Bull’s investment help Leeds this summer?
LeedsUnited.News also spoke to Williams about Red Bull’s investment in the club could mean moving forward, and more specifically this summer.
He confirmed that it would, indeed, hand leeway in the market when it comes to FFP, but clearly there is work to do regarding outgoing payments before that can happen.
He said: “At this stage, the scale of Red Bull’s investment isn’t clear. It’s been described only as a ‘minority’ stake. But the statement says the deal will come with capital investment, which suggests Red Bull won’t be a ‘token’ investor.
“That will have a material impact on their power in the transfer market. They already have wiggle room in terms of FFP. This will give them more headroom – although exactly how much isn’t obvious.
“The extra commercial income from the shirt deal will likely be the biggest driver at present. Leeds’ previous shirt deal with Boxt was worth £6m-a-year when they were in the Premier League, though the value will have fallen with step-down clauses in the second tier.
“The Red Bull deal will be a significant upswing on that figure, regardless of what league Leeds are in. It’s likely to be the biggest front-of-shirt deal in Championship history. Probably £8m-plus, with that figure rising if they win promotion.”
