Former Everton chief executive Keith Wyness has warned that new investors Red Bull may not be able to save Leeds United from a potential breach of Profitability and Sustainability Rules (PSR).
Despite the exciting announcement of Red Bull’s minority ownership stake in the club, Wyness believes that Leeds will still need to sell first-team players this summer to avoid financial penalties.
Leeds United announced a loss of £33.7million in their latest accounts, following a loss of £34million in 2021-22. Under PSR, the club is allowed to lose a maximum of £61million over a three-year period ending in 2024-25.
If they breach this figure, they could face fines and points deductions, as seen with Everton and Nottingham Forest this season.
Wyness, who now runs a football consultancy advising elite clubs, expressed his concerns on the Inside Track podcast: “Until we know the full details, it’s hard to know if a lot of cash has changed hands with this Red Bull deal.
It seems to be equity, shirt sponsorship, and possibly some other form of sponsorship. I don’t know how much cash will filter through to the bottom line.”
He added: “Leeds have got some big numbers owed to other clubs for players, so they’re sailing pretty close to the wind. They’ll have to make some player sales to cover this PSR issue, as we’ve discussed before. I don’t think this Red Bull deal can save them. It’s a bigger structural issue.”
Wyness’s comments suggest that the Red Bull investment, while welcome, may not be enough to solve Leeds United’s financial woes.
The club will need to take further action, including selling first-team players, to avoid breaching PSR and facing potential penalties.