The loss ceiling exceeded by Leeds United for the new three-year accounting period reduced to £22m.
In order to meet the Profitability and Sustainability Rules (PSR), they also sold teenage star Archie Gray for £40m to Tottenham Hotspur.
It is a significant boost to Leed’s finances, this move.
Impact of New Financial Limits
The health of Leeds’ finances will be scrutinized over a three-year period, with the club operating under stricter confinements as they are in the Championship.
Leeds were allowed a £35 million loss for 2022/23 and then limits of £13m in both the 2023/24 & 2024-25 seasons.
Sales and Financial Adjustments
The cost of such debt is €29.5m a year, which arose well before uncertainty was created by Brexit and more recent losses, the 2022/23 accounts reveal accumulated deficits of £34 million on top of those released in April.
The club hope to steady things with player sales and commercial deals including an expected significant contract with Red Bull were they ever to take over UEFA competitions again through Glasgow Rangers or Salzburg winning this season’s Champions League Tournaments more drastic action has been taken, such as selling off prize assets but Leeds will aim to prevent the punishment that clubs like Nottingham Forest and Everton have faced.
All will become much clearer when the club’s accounts are published in full early next year and their true financial impact can be assessed.
