Leeds United stance emerges as EFL want payments scrapped after £40.1m update
Leeds United are likely to be “ambivalent” to potential changes an independent regulator could bring to parachute payments, according to Kieran Maguire.
Daniel Farke’s side are set to pocket £40.1million in parachute payments this season, but the EFL are keen to scrap the scheme with Labour set to increase the power of the independent regulator [Martyn Ziegler, 12 September].
Although football finance expert Maguire doesn’t expect Leeds to be phased by the changes, he does admit that changing parachute payments in isolation would be a “huge negative step”.
As quoted by TBR Football on Friday (13 September) he said: “There is a possibility that the remit of the independent regulator could be expanded and look at issues in terms of parachute payments.
“My main concern is that, if the regulator looks at parachute payments in isolation of broader distribution issues, it would be a huge negative step. This could only be justified if you adjust parachute payments in tandem with a refinancing of wider distribution.
“I suspect Leeds United, given that they are in the second year of their parachute payments and could get £40m this year, are probably ambivalent because their focus will be on getting to the Premier League.
“Once clubs get to the Premier League, they then view the regulator as an interference and a hindrance.”
How much do Leeds United earn in parachute payments at Elland Road?
Leeds United’s only focus at this moment in time is getting back to the Premier League. Farke’s side may well have been buoyed by parachute payments over the last two years, but that will matter very little if they don’t win promotion.
The Whites cannot afford to be stuck in the second tier when the Premier League money dries up, even with the potential redistribution of funding that could be on the horizon under the new independent regulator.
Of course, the regulator would bring a completely different set of issues if Leeds do manage to return to the top flight, as Maguire has suggested, but the Whites would be in a much better position off and on the field.
Hopefully, Farke manages to maintain this good start to the season and kick on after the international break to give Leeds the best shot of winning automatic promotion this season.
Any other off-the-field issues currently pale in comparison to the importance of getting back into the top flight.
In other Leeds United news, one former Whites star has reacted after Liam Cooper’s Elland Road exit was finally confirmed
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