Leeds United could be forced to pay amid £50m claim

Plans to increase solidarity payments between the Premier League and the Championship would hit Leeds United hard.

So says finance guru Kieran Maguire, speaking exclusively to Football Insider on the distribution of wealth in the pyramid of English football.

the Time reported on Monday April 25 that the government had asked the Premier League to increase payments to lower divisions.

It is understood that the increased solidarity payments will be worth hundreds of millions per season to the EFL.

But it has not yet been determined whether the injections of funds will be merit-based or on a lump sum basis.

Maguire claims Leeds would fall further behind the so-called ‘big six’ if the Premier League took, say, ‘£50m’ from each team.

“It’s a double-edged sword” he said Football Insiderit’s Adam Williams.

“The danger with the proposals, if made on a flat basis, is that they will reduce the competitive balance in the Premier League.

“However, it will increase the competitive balance in the Championship. It really is the tail wagging the dog.

“The reason the Premier League is so popular with international audiences is because Leeds can challenge anybody else.

“If it’s going to be X amount per club, it’s going to further widen the differences between the teams financially.

“Man City have a £400m revenue advantage over Leeds, for example. That means they have 3.3 times the income of Leeds.

“If we were to take, say, £50m from each club, that would go from 3.3 to 4.3.

“So on a proportional basis it will be the non-big six clubs that will suffer the most from the distribution which will be on an even basis.”

Leeds recorded a pre-tax profit of £26m for the 2020-21 campaign.

It was only the second time the West Yorkshire club had recorded a surplus in the past decade.

In other news, Leeds United told to complete Brennan Johnson signing after what pundit saw in person

Kieran Maguire: Liverpool could now turn around and sign record £70m-a-year deal
Erik ten Hag hit with Man United critical hit after £50m source revealed – Reuters