This article is part of Football FanCast’s Opinion series, which provides analysis, insight and opinion on any issue within the beautiful game, from Paul Pogba’s haircuts to League Two relegation battles…
Leeds United’s current situation in terms of financial fair play is a rather precarious one.
Angus Kinnear has previously said that United are cutting it fine in terms of FFP, and that point has been reaffirmed by Phil Hay who has stated that United are right at the limit when it comes to spending any money this January.
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There’s been a lot of talk about financial mismanagement in recent weeks, and with Sheffield Wednesday looking likely to be the second club in the last 12 months to face a points deduction due to breaking the EFL’s rules, Leeds will want to avoid that at all costs.
Of course, if they are promoted that will all be forgotten as they will receive a huge windfall from TV payments and won’t have to abide by EFL rules anymore as they’d be in the Premier League.
However, if they aren’t promoted, they will still have to be very careful with their finances, and unfortunately, that won’t become any easier.
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The losses that are permitted are calculated over the past three seasons of activity, and currently, Leeds have a net profit of around £13m during that period according to Transfermarkt, yet they’re still cutting it fine in terms of FFP due to their wage bill and other factors.
That net profit will increase to around £23m this summer as their net spend of around £10m from the 2017/18 season will be struck off. However, it won’t remain that way for very long.
The Yorkshire club are still committed to paying £15m for Helder Costa next summer, so not only will Leeds be back at square one, but they’ll also be £2m worse off in terms of their net expenditure on transfers.
If Leeds aren’t promoted they may be in for another season of penny-pinching and loan deals, and if Phil Hay’s prediction of Marcelo Bielsa leaving does come to fruition they may struggle to compete at the top-end of the division.
In other news, Marcelo Bielsa may want to consider using one neglected man in an upcoming key clash.