Karren Brady, West Ham’s vice-chair and former minority investor, has not held back in making her views clear on a financial issue that has been looming over Leeds United.
Brady’s latest commentary touches on the glaring financial gulf between the Premier League and the English Football League (EFL), a gap that continues to widen with each passing season.
While both West Ham and Leeds United boast similar international profiles and enjoy strong domestic fanbases, the difference in financial standing between the two clubs is stark.
Leeds, who are now in their second successive season in the Championship, find themselves on a much more precarious financial footing compared to the Hammers.
The projected broadcast revenue for Leeds during the 2024-25 season is around £11 million. By contrast, West Ham, who are well-established in the Premier League, can expect to pocket more than 10 times that figure.
This disparity underscores why Leeds, having recently been relegated from the top flight, are set to receive parachute payments this season.
These payments, designed to cushion the financial blow of relegation, could extend into the next campaign should the Yorkshire club fail to secure promotion.
Yet, despite these parachute payments, many in football believe that more needs to be done to bridge the financial divide between the Premier League and the EFL.
Critics argue that the Premier League’s solidarity payments to the lower leagues are simply not enough, and the topic has been a contentious issue for some time.
While talks of a “new deal for English football” have been circulating, progress has stalled, particularly with the looming introduction of an independent football regulator.
Brady has made no secret of her disdain for the idea of such a regulator. In her latest column for The Sun, she took aim at both the government-backed regulatory body and its proponents within the EFL.
Brady argues that there is no need for the Premier League to funnel more money down to the lower leagues, dismissing the oft-repeated claim that the EFL serves as a key source of talent for the top flight.
Using Leeds as an example, Brady pointed to the club’s recent business dealings in the transfer market.
“Overall, the Championship clubs did £300m in player sales business,” she wrote. “Leeds and Burnley led the way, Leeds selling midfielder Georginio Rutter to Brighton for £40m while Fulham enticed the Clarets with £20m for Sander Berge.”
She went on to highlight the fact that such high-profile transfers from the Championship to the Premier League are the exception rather than the rule.
“Occasionally a Prem club breaches the £30m mark for a man from the lower league and more often than not he comes from a recently-relegated side,” Brady continued.
She added: “Check the records and you will quickly find evidence that the Championship isn’t half the Premier League nursery the EFL thinks it is.”
Her remarks are likely to strike a chord with many who feel that the Premier League’s reliance on EFL talent is overstated.
“Record signings of £40m for Rutter and, a year previously, for James Maddison made bold headlines but Premier League clubs tend towards foreigners who are often more cost-effective,” Brady argued.
The future of football finance and governance remains a hot topic, particularly for clubs like Leeds and West Ham, who could find themselves navigating a changing regulatory landscape in the near future.
Leeds United’s managing director, Angus Kinnear, has been an outspoken critic of the proposed independent regulator, once controversially likening the concept to Chairman Mao’s Great Leap Forward.
Despite the backlash to his analogy, Kinnear’s stance echoes the views of many in the Premier League.
Leeds, of course, see their current stint in the Championship as a temporary setback. The club believes that it belongs in the Premier League and has ambitions of competing at the top level once more.
However, should they secure promotion, both Leeds and West Ham will have to contend with new financial regulations, particularly the Premier League’s Profit and Sustainability Rules (PSR).
Currently, top-flight clubs are permitted to lose a maximum of £105 million over a rolling three-year period.
But change is on the horizon, with the Premier League expected to adopt a UEFA-style model from the 2025-26 season, capping spending on wages, transfers, and agent fees to 85% of a club’s annual turnover.
This new financial structure could usher in a new era of accountability and sustainability for English football. Whether it levels the playing field or deepens the divide remains to be seen.