Finance Expert: Leeds United sacking Jesse Marsch could save £60m loss overnight
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist. Each week he’ll be giving his views on the biggest talking points at Leeds United...
Dan Plumley has insisted that Leeds United would have weighed up potential financial losses from Premier League relegation compared to paying off Jesse Marsch.
The Finance Expert shared that dropping into the Championship would cost Leeds £60million overnight, so the compensation for sacking the American is nothing compared.
If Leeds stay up with their new manager, then it would be another £60million that they can add onto their budget and income at Elland Road.
“The risk versus reward argument is the one at play here,” he exclusively told MOT Leeds News.
“We know based on the current numbers in the Premier League that relegation to the Championship means £60million in lost income overnight and that’s the difference between the television payment in the Premier League, around £100million versus what you get for year one parachute payment which is about £40million.
“Your net reduction in revenue then is £60million if you get relegated and that then becomes the decision on what this is made on. So, whatever it costs you in compensation to sack Jesse Marsch, you have that figure, what is the risk of relegation? £60million absolute and you may have some commercial deals with clauses in them so it could be more than that.
“Whatever the compensation figure is, your marker against that is £60million, and if changing the manager keeps you up, you look at that and think that is a good move and it means you get that extra £60million next year.
“If it doesn’t work out then you’ve tried to change it.”
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