Leeds United ‘much more limited by PSR’ than Sunderland, Paraag Marathe wary of ‘big problems’

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Leeds United and Sunderland are bound to be compared this season due to being in a similar situation.

Both clubs are hoping to stay in the Premier League this season, as the transfer window certainly hasn’t been quiet for either side.

The Whites have made seven new additions with more expected, whereas the Mackems have got most of their business done with eight signings through the door.

Although similar in numbers of transfers, Regis Le Bris’ side have spent significantly more, with Sunderland utilising £121.6 million of their budget, which is £48 million more than Leeds, according to The Athletic.

Adding to this, Sunderland have beaten Leeds to targets, which makes it more frustrating for the 49ers, but there is a clear reason why this is the case.

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Leeds United could go big next season after being limited more by PSR than Sunderland this transfer window

There was a clear ambition at the start of the window, as Leeds could spend up to £150 million.

But Paraag Marathe and the hierarchy seem to be taking the more sensible strategy of cheap, efficient signings.

Meanwhile, Sunderland have been spending for fun, but there is a clear explanation for this, as LeedsUnited.News’ financial expert Adam Williams suggests the PSR limit is taking its toll.

“It’s not an uncommon pattern of spending to see a team which has been promoted without parachute payments to spend significantly more than others who have come up with them, but who have had the luxury of parachute payments – i.e., Sunderland and Leeds,” Williams said.

“We don’t have the figures for 2024-25 yet, but Leeds’ wage bill was £84 million in 2023-24, the first year after relegation. That will have come down a bit in their second season in the Championship, but it is still going to be significantly higher than Sunderland’s, which was £31m in 2023-24. And in terms of player transfer amortisation, Sunderland’s was £4 million, while Leeds’ was £59 million. Again, that gap will have narrowed, but it’s still a big difference.

“What that tells you is that Leeds, on paper, have a squad which is closer to being Premier League-ready than Sunderland. So you’d expect them to spend less on a net basis ahead of their return to the top flight.

“Leeds are also more limited by PSR. Their loss limit for the three-year period up until the end of the coming season is around £60 million.

“They lost £61 million in 2023-24 alone. They sold well in 2024-25, so they will still have some margin for error, and I don’t think PSR is going to weigh too heavily on them, but they certainly don’t have the same breathing space as Sunderland, who lost just £4m in the last financial year. That’s down to what Leeds have spent in the past.

“The owners have said that they’ll spend what they’re able to under PSR, and they still have headroom that they can use. So I would expect them to do more before the deadline in terms of gross spend. Another thing to consider is, does Paraag Marathe mean he is going to spend up to the limit of PSR in this window or across the three-year PSR cycle?

“The thing is, if you give yourself no margin for error, you can set yourself up for big problems in the future. So you’ve got to make these risk-reward calculations. It might be that they have a more modest window this summer, but go big next season if they stay up.”

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Despite PSR limit Leeds United might have taken more sensible approach than Sunderland

This summer seems like Sunderland will triumph in terms of spending.

Le Bris’ side have made some very impressive additions, with the likes of Granit Xhaka coming through the door, but there can be an argument that Anton Stach is better than Xhaka.

That’s up for debate, but the Whites might have been more sensible with their transfers, as there is a clear difference in experience and age between the signings made by both clubs.

This isn’t the determining factor, but in a possible relegation battle, you need an experienced squad; that’s just a fact.

That’s not denying the Mackems’ exciting young talent, and signings of experience like Xhaka, but it just seems that Farke has built a squad more fit for the occasion.

Despite the North East club spending a vast amount more, the key thing to remember is that money isn’t everything when it comes to the Premier League.