Leeds United to be roped into financial ‘disaster’ after ‘sickening’ development
Leeds United could be dragged into what Accrington Stanley owner Adam Holt has described as a “disaster” after Labour decided to increase employers’ National Insurance contribution rates.
Employers currently pay National Insurance of 13.8 per cent on a worker’s earnings above £175 a week [BBC News] and this is now set to rise to 15 per cent.
The new government has done so in an attempt to boost public funding for services like the NHS but will represent a blow to football clubs who have large numbers of staff.
The Accrington owner is clearly worried about this and believes that every club in the EFL should be as shown in his interview with The Sun (20 November, page 53).
He said: “What the Labour government have done to us, and many more, is sickening. I’m estimating it’s going to cost us £150,000 a year in extra costs but I’ve still got to go through the fine detail- I’m scared to look.
“I bet if you took a straw poll of EFL clubs, you would find that most are already losing money. This measure is just a disaster for football. It’s £600 more for every person that you employ.”
Leeds United may be roped into financial blow after Labour development
It is unclear how this could affect the Whites but there is no doubt that if this government change harms all EFL clubs then Leeds will be involved.
Given that Premier League football graced Elland Road just two seasons ago, the size of the club is almost unmatched in any division in the football league right now.
This could mean that they are impacted more than any side given how many staff they are likely to employ and have to pay this additional NIC outlay to.
As a result, chairman Paraag Marathe has to review practices for Leeds and work out a way around the financial burden this change could place on the club.
This could make promotion to the Premier League even more integral with the boost in finances that this would bring in, in terms of prize money and TV revenue.
Based on Holt’s comments, EFL clubs aren’t going to take this Labour change lying down but there is no evidence to suggest they are going to go back on what they’ve said now.
In other Leeds United news, The door has opened for Leeds to really annoy their bitter rivals but it could cost them a lot.
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