Finance expert Dr Dan Plumley has been reacting to an update from Leeds United in the event of relegation from the Premier League.
What are Leeds’ plans if they are relegated?
Sam Allardyce is the man tasked with keeping the Whites in the top flight, however, after one point from his opening two games, the club find themselves in the bottom three. Leeds now have just two games remaining to avoid the drop, but if they do fall back down to the Championship, the club already have plans in place.
Reliable reporter Phil Hay stated last week that there are ‘significant clauses inserted into every player’s contract, which will see wages fall by a minimum of 50 per cent and maximum of 60 per cent in the event of relegation’.
Talking to MOT Leeds News about those clauses, Plumley, who contributes to Sky Sports, labelled it as “sensible” and “the right thing to do”.
“It depends on the contract we’re talking about and it may be for certain players and not others.
“The bottom line is the right thing to do in the current climate. If you look at the most recent revenue for Leeds, you’re going to lose about 30% of that if you’re relegated, so balancing that out with some wage reduction clauses is pretty sensible and all clubs should be doing that in the modern-day game.”
Who is Leeds’ biggest earner?
A trip to West Ham and a final day Elland Road clash with Tottenham are the club’s only chances to turn things around, but if the worst is to happen, the Whites could be set to make considerable cuts.
Leeds’ current expenditure when it comes to wages is £48.1m, with top scorer Rodrigo the highest earner on £100,000-a-week. Patrick Bamford is on £70,000-a-week, whereas summer signing Luis Sinisterra makes up the top three picking up a salary of £65,000-a-week.
Therefore, if Leeds are relegated, up to £28.8m could be cut on wages, should each player have a 60% deduction. That will help with the loss of 30% in revenue, as claimed by Plumley, but everyone at the club will be hoping that those cuts aren’t required, with Allardyce managing to keep the club in the Premier League with two final positive results.
