EFL rule change could see teams forced into player sales as Leeds United subject to new financial controls
Clubs in the EFL have agreed to financial rule changes at an Extraordinary General Meeting (EGM) on Wednesday, April 30.
Teams in England, including Leeds United, who have competed in the English Football League will be subject to amended financial controls from the beginning of the 2025/26 season.
Changes to the division’s Profit and Sustainability Rules (P&S) for the upcoming 2025/26 season will be introduced in order to address the transition of clubs between the EFL and Premier League, according to a press release from the organisation.
An EFL statement read: "As is currently the case, all Clubs will still be required to file an estimated P&S calculation in March for the current season and the two immediately preceding seasons, irrespective of whether the Club was in the EFL or not for all or part of that time.
"As a result of the changes agreed today, from the 2025/26 season:
"The Club will then file its audited accounts and a final P&S calculation with whichever League it is in at that time in the following December.
"The EFL will be able to apply a sanction imposed by the Premier League’s independent Commission, with an equivalent provision included in the Premier League’s rules, should it be required.
"When the EFL receives the estimated P&S calculation in March, it can still take pre-emptive action if a Club is forecasting a breach, which can be in the form of a business plan or requiring player sales once the transfer window opens in June."
What does this all mean for Leeds?
This means teams will no longer be able to avoid financial or sporting sanctions when changing between leagues either through promotion or relegation.
The current loss limit for clubs in the EFL across three accounting periods is £41.5 million, recently increased from £39 million. Leeds' case is somewhat different given they have only spent two of the last three years in the Championship and one in the Premier League, where the maximum loss threshold is higher.
For that reason, Leeds were permitted to lose roughly £83 million over the three seasons from July 1, 2021 to June 30, 2024, as during the relevant period, the Whites had spent two years in the top flight and one in the EFL.
What is Leeds’ maximum allowable loss for this season?
When this season's accounts are released next Spring, Leeds' losses will need to come in below approximately £62 million as their threshold for the year end June 2025 fell to reflect two seasons in the second tier and one in the Premier League.