GOOD OR BAD NEWS – EFL Releases Statement on New FFP Rules: What It Means for Leeds United

EFL Releases Statement on New FFP Rules: What It Means for Leeds United

The English Football League (EFL) has announced changes to its Profit and Sustainability Rules (P&S), which will come into force from the 2025/26 season. The new rules aim to close loopholes that allowed clubs to escape punishment for breaching financial regulations.

Impact on Leeds United
The changes will have a significant impact on Leeds United, particularly if they are relegated from the Premier League. Under the new rules, the club will be subject to the EFL’s P&S regulations, and any breaches will be punishable. This means that Leeds United will no longer be able to use the same argument as Leicester City, which escaped punishment for its 2022/23 top-flight P&S breaches due to its status as an EFL club.

Key Changes
The EFL’s statement outlined the key changes to the P&S rules, including:

• Clubs will be required to file an estimated P&S calculation in March for the current season and the two immediately preceding seasons.
• The EFL will be able to apply sanctions imposed by the Premier League’s independent Commission.
• The EFL can take pre-emptive action if a club is forecasting a breach, including requiring player sales.

Squad Cost Ratio System
The EFL is also discussing the introduction of a Squad Cost Ratio system, which would limit clubs to spending a set percentage of their income on player-related costs. The Premier League has been operating a similar system, and it is likely that the EFL will follow suit.

Conclusion
The new FFP rules will have a significant impact on Leeds United and other clubs in the EFL. The changes aim to promote financial sustainability and fair competition, and clubs will need to adapt to the new regulations to avoid punishment. With Leeds United’s recent promotion to the Premier League, the club will need to be mindful of the new rules and ensure that it is operating within the financial guidelines.