Kieran Maguire: Leeds United wages could be capped at £137m amid recent reveal
Leeds United could reportedly see their salaries capped at £137million amid the recent reported proposals from the Premier League.
According to football finance expert and author of the Price of Football blog Kieran Maguire, this calculation has been calculated as 80 per cent of the Whites’ revenue from 2021.
However, once amortisation of wages is included which is a metric of transfer fees, the value goes up to £146million.
This comes after The Times reported on Tuesday [20 September], that will cap wages at 90 per cent for the calendar year 2023, 80 per cent for 2024 and 70 per cent from 2025.
Financial fair play is a scam and each league having their own regulations may be the right way to go as clubs anyway manage to circumnavigate the broader framework of it all.
However, doing this will ensure that clubs like Leeds will find it harder to break into the elite as their revenues are not as large as the top six.
Should the San Francisco 49ers take over the club and put loads of money into it, they could be restricted in terms of how much they can offer players in terms of salaries.
Usually, when clubs look to go to the next level, they’re often spending more than what they can on salaries as well as transfer fees and these regulations may stop that from happening.
There are trade-offs to every rule change and these are initial problems but the league does seem serious about making these changes sooner rather than later and we could hear more in the coming days.