Just in:Leeds United permitted to lose up to £41.5m under Profit and Sustainability Rules with impact on their transfer budget

Leeds United to land £41.5m transfer boost after Red Bull and 49ers join in-person talks

Although the West Yorkshire team had hoped that the Championship’s financial regulations would not affect them in

2024–25, their failure to get to the play-off final means that compliance is still required.

Currently, clubs in the second division of England are permitted to lose up to £39 million in a rolling three-year

period, or £13 million every season.

Leeds was relegated in 2022–23, but they are still receiving Premier League parachute payments.

However, chairman Paraag Marathe has cautioned that player sales may be necessary to meet PSR requirements.

The most recent information regarding Championship spending regulations will probably be appreciated at Elland

Road in light of this.

Leeds FFP standing to gain from new Championship regulations

It was widely reported earlier this year that the Championship intended to increase their permitted loss cap from

£39 million to £41.5 million, a rise of £2.5 million.

The EFL has since issued a statement stating that they want to improve their system by the end of the year and that

they are dedicated to reevaluating its financial controls.

The Football League’s AGM last week saw the decision made, and in attendance were officials from Leeds’ owners,

the San Francisco 49ers investment fund, and Red Bull, a new minority stakeholder.

The EFL did not explicitly clarify that the phrase was a reference to the proposed £2.5 million rise in permissible losses,

but it does seem likely that change is on the way.

In the event that Red Bull and the 49ers decide to fund the losses,

Leeds will have an additional £2.5 million in PSR cushion, essentially adding that much to their playing budget.

That seems possible, considering Red Bull’s and the 49ers’ aspirations.

It would also fit in with a story from last week’s Yorkshire Evening Post that stated Leeds is among the teams

pushing for a more lenient FFP rule.

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