Paraag Marathe has made Leeds United’s position clear. Leeds have stability, but the move from PSR to SCR means the club’s transfer power is tied more directly to revenue growth.
The Premier League will replace PSR with SCR and SSR from 2026-27, and that change matters because the two systems measure different things. PSR judged clubs by allowable losses across a rolling period.
That made Leeds’ position awkward last summer because Championship revenue was still part of the calculation after two of the previous three seasons outside the Premier League.
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SCR is more direct. It will limit squad costs to 85 percent of football-related revenue and player trading profit or loss, with wages, transfer amortisation and agent fees all counted.
That is why this is more than a technical rule change. Leeds are no longer being judged mainly on what they can afford to lose, but on what they can generate.
Leeds already felt the PSR squeeze last summer
Leeds were active in 2025. They made 10 new signings during the summer window and spent more than £100m to build a squad capable of surviving. That spending should not be confused with freedom.
Leeds had to rebuild while still carrying the financial drag of recent Championship seasons, which meant PSR shaped the window even when the final outlay looked aggressive.
The club got enough right to stay up, with Farke’s side finishing 14th in the Premier League and earned £144.5m for doing so. That changed the sporting picture, but it has not removed the financial discipline.
This is where Marathe’s warning is important. Leeds are not starting from zero, but they are not entering a window where spending can simply rise because survival was achieved.
Elland Road is now central to Leeds’ transfer ceiling
Speaking to Leeds’ YouTube channel, Marathe said the move from PSR to SCR is more restrictive for Leeds in the short term but better in the long term because of stadium expansion. That is the key line.
“So with the shift to PSR to SCR, in the short term for us at Leeds it’s a bit more restrictive than PSR would have been. But in the long term it’s probably better for us with the stadium expansion,” Marathe said.
“We will be strategic about it and thoughtful about it. We will be chasing some differential signings if we can,” Marathe added. Leeds have secured planning permission for the Elland Road redevelopment.
The club are aiming to increase capacity and reduce a 26,000-strong season ticket waiting list. The wider plan is to lift Elland Road from 37,645 seats to 53,000.
That means more matchday income, more hospitality income and a bigger commercial platform. The West Stand is under redevelopment.
Under SCR, that directly affects what Leeds can spend. The stadium is no longer just an infrastructure project, it is part of the club’s recruitment model.
Leeds need precision, not another volume window
That should shape the summer. Leeds still need to fix their goalkeeping situation, add cover for Gabriel Gudmundsson at left-back and bring in another midfielder.
They also need a more productive version of Brenden Aaronson’s role, one or two wide players and proper competition for Dominic Calvert-Lewin. That is a long list, but it does not have to mean another scattergun window.
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The club need starting-quality additions more than squad padding. Marathe’s reference to differential signings fits that reality because SCR will punish waste more quickly than PSR did.
Leeds’ transfer business should therefore be judged by impact rather than volume. Elland Road expansion is what can eventually give the club the room to be more ambitious.
Marathe was not lowering expectations. He was explaining the new rules of the game, and under SCR, Leeds’ future spending power depends on turning Premier League survival and a bigger Elland Road into lasting revenue strength.
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