Just a gentle reminder that the Profitability & Sustainability (PSR) regulations are determining the extent of our spending this June 2025 due to English footballs top 2 division permitted losses over a 3 year period which I often harp on about.
Before some start jumping at the bit we must consider Leeds most recent set of accounts outlined prior on here which saw us report a 60.8m pound loss, whilst the 2022/23 campaign saw Leeds lose 33.7m pound loss & the season before that we made a 36.7m pound loss.
Cumulatively our 'losses over that 3 year period' exceed the maximum PSR threshold. However, due to tax deductible 'allowable expenses' such as infrastructure costs, academy costs, the running of the clubs Womens team & our various community schemes, Leeds will not face any PSR sanctions, ok.
That said, with all those expenses taken into account the club are up to their necks now in terms of where the red PSR line is for that 3 year period between July 1st 2021 & June 30, 2024.
Gotta remember that PL sides who have spent the entire 3 year accounting period in 'the top flight' are allowed losses of up to 105m pounds but in our case having spent 2 years in the Championship the relevant accounting period which ended June 30, 2024 means our maximum loss allowance was 83m pounds !
So, if Leeds were to sign a player for 30m pounds BEFORE July 1, 2025, that fee would most likely be reflected in our clubs 2024/25 accounts.🙁
As we made an approximate 61m pound loss for the 2023/24 season being the first of 2 years spent in the Championship - a similar loss is expected to be reported next spring for the 2024/25 campaign.
So it would NOT make sense from an 'accounting-perspective' to report such an investment before this years June 30 cut-off transfer wise.👍
Finally, you all will recall Leeds first signing of the 2024/25 season was Rodon, announced on 2nd July last summer, largely due to the above financial reasoning.
A year earlier, Leeds first senior addition of the summer window was Ampadu on 19th July.
Not dragging heels as such again but diligence shown regarding 'dates' when deals are actually signed - 'tho of course deals maybe have been agreed in principle just not publicly announced yet obviously, Sniffer.
Just saying