Premier League set for major spending rule change that could effect Leeds United with £161m message

Leeds United could be made to work inside a spending cap if they are promoted to the Premier League as part of the top-flight’s profitability and sustainability rules (PSR) reform.

The Premier League’s 20 member clubs voted unanimously to progress with new controls over spending amid intensifying frustration with the current set up, with another vote expected at a meeting in June. Currently, clubs are permitted to lose a maximum of £105million over a three-year period in the Premier League.

The new rules will limit player-related spending - including transfer fees, wages and agents fees - to 85 per cent of overall revenue for teams not competing in European competition. Those in the Champions League, Europa League and Europa Conference League will have their cap reduced to 70 per cent of total revenue.

These rules will not be fully implemented until at least the 2025/26 campaign but could be rolled out in shadow form next season, with current PSR rules still in place. There would then be a transition to the new spending caps.

Leeds recently published their accounts for the 2022/23 season in which they were relegated from the Premier League, confirming an operating loss of £33.7m. Interestingly, the club posted total revenue of £189.68m, which in theory would cap their player-related expenditure at just over £161m if the new rules were in place.

Club revenue is expected to be far lower this season, thanks mainly to the massive drop in television broadcast income. Leeds received £111.5m last term but will bring home a fraction of that as a Championship team, despite being selected 32 times this season, including all of their final four league games.

There has been increasing scrutiny of the Premier League’s current PSR rules which allows a maximum three-year loss of £105m, with multiple points deductions handed out. Everton have been docked eight points through two separate breaches, while Nottingham Forest had four points taken from them.

Leicester City are also facing a potential points deduction after recently published accounts confirmed they had breached the £105m limit for the three-year period ending with the 2022/23 campaign. Any punishment will come next season and will not affect their Championship promotion push.