By admin Leeds United lost out on a £140 million windfall by losing the Championship play-off final, therefore they will have to sell before they can purchase this summer.
Leeds will receive their second year of parachute payments, which are equivalent to 45% of the central broadcasting distribution that all Premier League clubs receive (compared to 55% in the first year). However, they owe other clubs £190 million in transfer fee installments, even though their player sales are only expected to bring in £2 million.
Football finance expert Kieran Maguire stated, “Outstanding transfer fee creditors of £190m mean that Leeds will have to pay for old player acquisitions before they can spend this summer.” He added that while cash flow might be difficult, funding from owners 49’Ers and player sales “should see them through.”
Because the caps vary between the top two divisions, Leeds is permitted to report losses of up to £61 million over a rolling three-year period, including 2024–2025; this is in contrast to the £83 million up to 2023–2024.
In order to adjust for inflation, championship teams decided this summer to increase the three-year cap from £39 million to £41.5 million.
In their first year back down, Burnley, Sheffield United, and Luton Town are each owed somewhat less than £50 million in parachute payments. Bayern Munich may give Burnley’s finances a further boost by paying manager Vincent Kompany an estimated £10 million in compensation.
A large portion of the money Luton has made in the past 12 months will go toward financing a new stadium.
Takeover speculation is still going at Sheff Utd, who will begin the season with minus-two points because of prior FFP violations. Prospective new owners—the US and Saudi Arabia are reportedly showing interest—are said to have already impacted the decision to revoke midfielder Ben Osborn’s contract option.
Prior to promotion in 2023, Sheff Utd was on the verge of going bankrupt. However, the Star reports that the club’s “modest transfer spend” last summer “allowed them to reset financially and even though they may not be awash with cash as things stand”.
Earlier this month, manager Chris Wilder declared, “We’re not dead, the club’s not going to go under.” We’re not in the same financial situation as other teams, and we’re breaking the law everywhere we go and losing games left, right, and center. Since our club is sustainable, we must ensure that the preseason goes well and that we regain our good vibe.
As they prepare for what will be a completely new financial reality, West Bromwich Albion has let go of seven senior players and is in negotiations with three important first team players.
With the introduction of parachute payments in 2006–07, Albion will not have been in the Premier League or the Championship for the first time until the 2024–25 season. The team will be in its fourth season, so it will be fascinating to see how much they can provide to attempt to hold on to major earners like Kyle Bartley and Alex Mowatt, or at least those who were significant earners in the past.
After being demoted in 2022, Norwich is into its third and final year of parachute payments, which are estimated to be worth roughly £16.5 million. The team has let go of players who, if they were nearing contract expiration, are seen to have been paid more than their fair share. Dimitris Giannoulis, who started 31 games, and Ben Gibson, who started 35, are no longer with the team.
After finishing in 15th place, Watford is also into its third year as parachutes. They recently hired Tom Cleverley as their fifth head coach since leaving the premier league.
This summer, Coventry will probably need to find a way to replace yet another important player. Although the past few months have demonstrated that life goes on after Viktor Gyokeres and Gustavo Hamer, Callum O’Hare’s supporters must now accept his impending death. Even if there won’t be as many agreements as in 2023, things will probably still be bustling.
Owner Doug King of the Sky Blues has told Mark Robins to keep quiet about business, but he acknowledged that the club, like every other in the Championship, runs at a loss and must adhere to FFP restrictions. Robins will need to strike a budgetary balance.
“Look, I want us to get promoted,” he declared. I am a driven individual who considers all aspects carefully. If we can build our team from the ground up, starting with the strong foundation and core we now have, we will go forward. And trust me when I say that we are currently on it. There are far too many calls pouring in for me.
We’re talking about it and working on it, so let me say to the Sky Blue Army and all of our supporters that we’ve been here for about 15 months and have had a few amazing adventures. Although we haven’t quite reached our goal, we’re going to give it everything we’ve got.