In a statement released at the end of the season, Leeds United Chief Paraag Marathe outlined plans for this summer. He stated that the club will continue to build on and off the field.
But he did speak about the league’s switch from Profit and Sustainability (PSR) to Squad Cost Ratio (SCR). The switch in financial guidelines will come into effect next season.
Marathe added that Leeds will have a disciplined approach to the transfer market in order to stay within the rules.
The Whites spent over £100 million and added 10 new players last summer. But things could be completely different now.
Six-point deduction could affect Leeds United ahead of transfer window
The new SCR rules will only allow clubs to spend a ratio of their football earnings.
Adam Pope and Jonny Buchan discussed the new rules on the Don’t Go To Bed Yet podcast.
”Everybody’s been used to this whole PSR system where, although they might not understand it, but it was a 3 year rolling look at your accounts and whether you were beyond the parameters that were required by either the Football League or the Premier League, changing now.”
”It’s much more, almost like a bit more real time. So, squad cost ratio, in simple terms, Johnny, is that if you’re not in UEFA competition, and Leeds aren’t next season, then you can basically spend 80, 85% of your revenue, your football revenue can be spent on your squad, if you like. That’s the simplest term. A lot more complicated than that. If you’re in UEFA competition, then you can only spend 70%.”
A key distinction from the PSR system is that sanctions for breaking SCR rules will see immediate punishment.
Club’s could be docked points for flouting the rules, which will be instant.
”Now, there is a little buffer zone, as well, of 30% of those two marks, of which, if you enter it, then you get a sort of graded fine, the more you go on. If you go beyond that, then you could get a 6 point deduction as of March this coming season.” Pope continued.
”So that’s how it will work.”
The idea is that if there’s any sanction to be done or any fine to be done, it happens in this season in which the infringement happens.
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Could Leeds be in trouble next season?
As things stand, Leeds United will be in a very okay position heading into next season.
The club avoided spending over £40 million in January to sign Jorgen Strand Larsen for this very reason – to keep the books stable.
After surviving the Premier League and earning prize money, things will be expected to run smoothly.
And from what Paraag Marathe has said, the club will do their best to spend within the rules. Which most likely means there will be some departures from Elland Road in the coming months.
So they aren’t in danger of being docked 6 points. What a stupid headline.
What the hell kind of headline is that? You do write some utter bullshit at times.