Found this elsewhere. Sounds plausible Just a reminder We “DO NOT” need to sell a single player before Sunday to comply with PS&R/FFP We are compliant and under the limit without any sales. Our 22/23 season accounts reflected a £33.7m pre-tax loss as we fell out of the Premier League, down from £36.7m the year before, totalling £70.4m The three-year accounting period beginning July 1, 2021 and running until June 30, 2024 will permit us to make a loss of £83 million over those three seasons, which leaves room for a further £12.6m loss in the unreleased 2023/24 accounts, a loss which we won’t make because the likes of Harrison has gone back out on loan, Aaronson is returning and the likes of Roca & Llorente will be loaned out again or sold for their current book values or small profits. Premier League clubs are permitted to make losses of up to £105 million over a three-year period, which works out at a rate of £35 million per year. However, if one of those three seasons is spent in the Championship, such as us in 23/24, the annual loss threshold falls to £13 million for that season, resulting in the £83m figure listed above. Going from a £33.7m annual loss to £12.6m within the space of a year, whilst no longer in receipt of Premier League broadcast revenue and centralised payments, may strike fear into supporters, but the sales of Sinisterra & Adams for £45m will be reflected in the club's 2023/24 accounts. Additionally, upon relegation from the top flight, mandatory wage reduction clauses kicked in, which saw players' salaries fall by 60% significantly reducing the club's overall wage bill. Included in the 22/23 accounts was close to £10m worth of pay-offs to former managers, coaches and staff no longer employed by the club. During the 23/24 Championship campaign, no such exits were made, thus saving the club a hefty chunk of change. Factor in Red Bull's recent investment and front-of-shirt sponsorship agreement, the latter of which can be reported in 23/24 the accounting period and given the timing of the announcement, we’re abiding by PS&R regulations. Paraag Marathe has already stated this summer he hopes the club are skirting close to the line every season in order to be as competitive as possible. Granted, a major player sale before Sunday would greatly aid the club from a financial reporting standpoint but the manner in which we have conducted our business so far this summer suggests we are on a very sound financial footing.
Sounds great, we can keep our best players or really push for top dollar if they want to leave. Also we can vulture around other cash strapped clubs as has happened to us in the past. Maybe the 49ers do know what they are doing?
I'm surprised that anyone thinks that this would be the case, as otherwise we would have been making the same headlines as Leicester were last November, December. I think every post I've made recently on here about PSR has said the issue is over the next 12 months. The first financial reporting period to the EFL next season will be October 2024, and thus we need to be able to show at that time, that the club are managing their finances correctly. If that means player sales, commercial investment or whatever, then it needs to happen within the months of July - September. I'm presuming that we wont be able to rely upon the same loophole as Leicester as 1), we have already spent 12 months under the EFL administration, 2) they have probably closed that loophole and 3) we're Leeds United so of course if the accounts show we are one penny over PSR, then the league will make an example of us. Whilst audited accounts shows losses of approx £70m, for PSR purposes our losses are approx £53m. When it was mentioned that if we paid a £20m bonus to the players if we had got promoted then it would mean that we would have breached PSR. I calculated our losses would have been approx £85m. So on that basis we are within PSR by about £18m at present, with PSR losses of £65m, after allowing for the sale of Adams and Sinisterra and partial transfer payments made relating to Piroe, Ampadu, Grueve and Kamara. Of course my figures may be incorrect. I've come up with a best guess after looking at our audited accounts for the past 8 years and making some presumptions, but of course I am no more right or wrong than any other random post made anywhere on the interweb concerning our finances. Unfortunately as our audited accounts for June 2024, probably wont be made available for public viewing until March/April 2025, I wont have a clue how far out I've been.
They have closed the Leicester loophole in as much that any punishment will given to the club in the same season. As I understand it Leicester refused to submit a business plan to the EFL claiming they were a premier league team for part of the PSR timeframe. So it’s reported that they are now in breach of both EPL and EFL financial rules meaning potentially a points deduction this season and another next year if they get relegated.
The strange thing about all this is the teams being found guilty of breaking the regulations seem to be avoiding relegation. Everton and Forest latest two. Villa before that, weren’t deducted anything of course. The city fiasco. Makes you wonder as WJ has said before are you better off building a pl quality team and break the rules
Just for a laugh I thought lets see if instead of me doing all the research I do, if so called "A I" can do it better or at least easier. ChatGPT - As of my last update in January 2023, I don't have specific information on Leeds United's current financial situation or their progress toward breaching Profit and Sustainability Regulations (PSR). PSR, also known as Financial Fair Play (FFP), is monitored by football governing bodies to ensure clubs operate within sustainable financial limits. To get the most accurate and current information regarding Leeds United's compliance with PSR, I recommend checking recent financial reports from the club, updates from football governing bodies like the Premier League or UEFA, and analysis from reputable sports financial analysts or news sources that cover football finance closely. These sources can provide insights into whether Leeds United are close to or compliant with PSR regulations. Claude 3 As of my last update in April 2024, I don't have current specific information about Leeds United's financial situation regarding PSR (Profitability and Sustainability Rules) compliance. Financial situations for football clubs can change rapidly, and without access to the club's latest financial reports, it would be difficult to give an accurate assessment. PSR, which replaced Financial Fair Play (FFP) rules in the English Football League (EFL), requires clubs to limit their losses over a three-year period. The exact threshold and Leeds United's current position would depend on various factors, including their recent transfer activities, revenues, and which league they are currently playing in. To get an accurate picture of Leeds United's PSR situation, you would need to consult the club's most recent financial statements or official announcements from the club or the EFL. If you have more recent information about their financial status or league position, I'd be happy to discuss the implications based on that. Would you like me to explain more about how PSR works in general, or discuss potential implications for clubs that breach these rules? For Leeds United specifically, their PSR situation would depend on factors like: Their current league position Recent transfer activity Success in increasing commercial revenue The structure of player contracts Any parachute payments if recently relegated Thanks a lot AI, things are so much more clearer now
