Championship transfer budgets with Coventry City ‘ambitious’ and Leeds United ‘forced to sell’
Latest Coventry City news as Championship line-up is confirmed for the 2024/25 season and clubs are deep into preparations for summer transfer window
Leeds United will be forced to sell before they can buy this summer after missing out on a £140 million windfall by losing the Championship play-off final.
Leeds will receive their second year of parachute payments – 45 per cent of the central broadcasting distribution that is received by every Premier League club, compared to 55 per cent in the first year down – but they owe other clubs £190m in transfer fee instalments while they are only due to
receive £2m in player sales.
“Outstanding transfer fee creditors of £190m mean that Leeds will have to pay for old player acquisitions before they can spend this summer,” said football finance expert Kieran Maguire, who suggested that cash flow could be a challenge but funding from owners 49’Ers and players sales “should see them through”.
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In terms of Financial Fair Play, Leeds are allowed to record losses of up to £61m over a rolling three-year period including 2024/25 compared to £83m up to 2023/24 because the limits are different between the top two divisions.
Championship clubs have voted this summer to extend the three-year limit from £39m to £41.5m to take into account inflation.
Burnley, Sheffield United and Luton Town will be due just under £50m each in parachute payments in their first year back down. Burnley’s coffers could be further boosted by compensation of about £10m from Bayern Munich for manager Vincent Kompany.
Luton are set to use a large chunk of the cash they have generated over the last 12 months to fund a new stadium.
Takeover talk continues at Sheff Utd, who will start the season on minus-two points due to previous breaches of FFP. Prospective new owners – there is apparently interest from the United States and Saudi Arabia – have reportedly already influenced a U-turn on a decision to trigger a contract option to keep midfielder Ben Osborn.
Sheff Utd were on the brink of administration before promotion in 2023 and the club’s “modest transfer spend” last summer has “allowed them to reset financially and even though they may not be awash with cash as things stand”, according to the Star.
