‘Whopping’ – Football finance expert taken ‘aback’ by huge payout Leeds have agreed
Football finance expert Kieran Maguire has claimed that Leeds United will have to spend around a third of their £100m TV haul if they get promoted on prior commitments.
The “big one” is promotion bonuses, which he described as “whopping” and bigger than “we see at most clubs”.
However, Maguire said the payouts would still leave the club in a strong position in the summer transfer market.
Talking on the latest episode of The Price of Football podcast, Maguire detailed what Leeds would have to pay out: £5m-£10m on an upgrade to the floodlights and perimeter advertising areas.
He also said there seemed to be a £4m loan from former owners that would need to be paid back and transfer top-ups or add-ons that would amount to £5m.
“But remember,” Maguire said, “you are going from having a TV deal of £7m to £100m so the money is there.
“I think the big one, and this did take me a little bit aback because this is probably more than we see at most clubs, is that according to Leeds’ accounts, if they are promoted, the bonus pool for staff, which I presume is mainly players and management, is a whopping £19m.
“So yes there will be costs, realistically £30-£35m or around a third of the money from the Premier League, but that will still leave them in a strong position going into the transfer market.”
You’re not going to find many Leeds fans that begrudge big bonuses to the players and coaching staff if Leeds get promoted.
There was also talk of a trip to Vegas, although with the current state of the world we’re not sure if that would still go ahead.
One of the most placing aspects of the Radrizzani reign to date has been how well run the club has been.
He took a gamble on the Premier League, with wages that are unsustainable in the Championship, but he didn’t push the profit & sustainability levels. And he hasn’t taken advantages of loopholes that have seen rivals like Derby under investigation.
Leeds aren’t promoted yet but it’s looking pretty much nailed on. If Brentford drop any points tonight then a win on Thursday will do it.
It’s been a bumpy ride, though, and we wonder what would have happened had the gamble not paid off.
That’s more of a question for the EFL and the Championship going forward. Something needs to change, with Wigan in administration and others in danger of joining them.
In other Leeds United news, Phil Hay claims Leeds in hunt for CB with £19.5m release clause as White deal ‘difficult’