Leeds United owners 49ers Enterprises, the investment arm of the San Francisco 49ers, are determined for the club to stand on its own two feet financially.
So far, they have put around £450m into the club in order to win back promotion to the Premier League, make Daniel Farke’s side competitive in the top flight, and invest in infrastructure.
But as detailed in documents sent to investors outlining 49ers’ long-term masterplan, the ambition once the expansion of Elland Road is complete and the club have hopefully consolidated their position in the Premier League is for Leeds not to spend beyond what they earn.
In recent years, however, it has been an occupational hazard for certain clubs to overspend in order to survive and thrive in the top flight.
Leicester City are among the clubs for whom this strategy went haywire. They overspent under the Premier League ‘s Profit and Sustainability Rules (PSR) and are now in League One.
In one of the seasons they were deemed to have broken the rules, 2023-24, Leicester pipped Leeds United to automatic promotion from the Championship. And after Burnley won £30m in compensation from Everton in a very similar case recently, Leeds are said to be considering filing a similar claim against the Foxes.
So, how likely is it to succeed? HITC spoke exclusively to University of Liverpool football finance lecturer Professor Kieran Maguire for his verdict.
“The phrase ‘can of worms’ has never been more apt for the awarding of the settlement between Burnley and Everton,” he said, discussing how Leeds could use the case as a precedent for their own.
“There is no doubt that in other seasons where clubs have been relegated and other clubs have subsequently deemed to have breached PSR, those clubs now have a much higher chance of securing compensation.
“The £26m plus interest Burnley have got from Everton will be set up as a benchmark for other clubs to follow, including Leeds.
“It’s very good news for football accountants and lawyers, less so for the boards of directors who will be on the receiving end.”
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