Leeds United suffered a 1-0 defeat in the play-off final to Southampton on Sunday afternoon, dealing a hefty blow to the club’s finances ahead of the summer transfer window.
The Whites went into the season as one of the favourites to seal a return to the Premier League. By the beginning of April, it looked as though Daniel Farke would guide the Yorkshire outfit to automatic promotion, possibly even lifting the Championship title following Leicester City‘s blip in form in February and March.
However, a 2-1 defeat away at Coventry City kick-started a catastrophic end to the campaign. The Whites picked up merely one victory in their final six league games and despite thrashing Norwich City 4-0 on aggregate in the play-off semi-finals, Farke’s men would miss out on the top-flight by losing the final at Wembley, enduring a third consecutive defeat to Southampton this term.
This narrow loss at the weekend could have troubling financial ramifications for Leeds United over the coming months. Football finance expert and host of the Price of Football Podcast, Kieran Maguire, revealed last month that the club still have £190 million in outstanding credit from player purchases which will need to be dealt with before any new arrivals come through the doors at Elland Road.
The play-off final is worth anywhere between £135 million to £265 million but these delicious fruits will now be devoured by yesterday’s victors. As a result, this transfer debt will need to be offset.
Maguire issued a further update on this situation following the clash in the English capital, stating that £73 million of the club’s £190 million owed will need to be paid by the final day of next month. Nevertheless, the silver lining is that Maguire has claimed the club’s owners, 49ers Enterprises, will provide funding to pay off this figure.
Writer’s View
Unfortunately for Leeds United, the club will spend another season in England’s second tier despite having high hopes of bouncing straight back to the top-flight. Consequently, parachute payments will be reduced as of the 2024/25 campaign which means there will be less money to play with in the transfer kitty.
Having the assurance of Premier League football would have helped Leeds balance their books and pay the outlandish outstanding £190 million credit but this will now have to be sourced elsewhere which could hinder Farke’s ability to strengthen the squad this summer.
Deputy Head of Writing
