Finance Expert reacts to Leeds United transfer news with careful message
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 will need to be careful in regard to their transfer spending after returning to the Championship.
The 49ers Enterprises promised an aggressive approach to the window and ended up spending over £20million with their biggest deals for Joel Piroe and Ethan Ampadu.
The finance expert admitted that with the cushion of parachute payments and wage reductions on top of player sales, they have a cushion throughout this year.
“You’ve got to be careful in the Championship,” he exclusively told MOT Leeds News.
“Obviously the profit and sustainability regulations are different, but if you look at the whole picture of Leeds United, they have got the cushion of parachute payments.
“They’ve got wage reduction clauses that were in contracts and the outgoings as well. It fits the narrative of what happens to those clubs that get relegated because a lot of the spending has been dictated by Southampton, Leicester and latterly Leeds, so it rings true to what we know about that setup.
“You’ve then got to balance those cost structures and the transfer fees are not likely to be upfront.
“You have got to be mindful of the regulations, but you have that cushion, certainly in the first year after relegation, so that will be in the back of the mind here behind the spending, which is why you’re not seeing extortionate fees, but a bit of aggression in the market.”
In other Leeds United news, one player has to start after they impressed on their Elland Road debut