Leeds United have warned Sheffield United after their points were deducted for unpaid bills

Leeds United have been warned following Sheffield United’s recent penalty of points deductions for failing to settle outstanding transfer fees, underscoring the potential consequences for clubs defaulting on payments.

Sheffield United’s nearly £9m transfer fee default has led to the EFL imposing a two-point deduction, which will come into force at the start of next season if the Blades are relegated to the Championship.

In addition, at the end of the next season, another two-point deduction will come into effect.

Leeds United have a similar problem

The situation has drawn attention to Leeds United, whose accounts for 2022-23 revealed outstanding payments to other clubs of around £190m.

Speak Football Insider’s Inside Track podcastFormer Everton director Keith Wyness has claimed that Leeds United could pose a major problem for indebted clubs if they default on their outstanding payments.

Wyness highlighted the potential gravity of the problem, citing his past experiences with Italian clubs during his time at Everton who needed to attend FIFA tribunals to resolve payment disputes.

He stressed the importance of timely payments in order to maintain financial stability and maintain the budget forecast, and warned of potential disruptions due to non-payment.

While Sheffield United’s £8m default may not have catastrophic financial consequences, Wyness highlighted the potential scale of the problem if major clubs such as Leeds defaulted on significant sums.

Such a scenario could cause serious problems for clubs awaiting payment.

He said (quote Football Insider):

“It seems that the owner of Sheffield United is solely to blame for this penalty.

“It has to be cash flow issues, and it happens in business.

“The risk is huge, but if clubs stop paying each other

“When I was at Everton I had a similar problem with the Italian clubs, we had to go to the FIFA tribunals.

“It becomes a real problem because you’re anticipating these payments and all of a sudden your budget is out of whack.”

“So this is a very important issue, don’t let its scale fool you. Sheffield United this time around £8 million, which won’t break the bank.

“But if a big club like Leeds, who are £190m in debt, don’t pay, it could be a big problem for clubs.”

Additional stories / Latest news

Leeds United have been in a very tight battle for direct promotion

Leeds United are currently in a tight race for direct promotion. They are 3rd in the table with 87 points, just 2 points behind 2nd placed Ipswich Town and 4 points behind league leaders Leicester City.

Their form has dipped recently, with the club winning just one of their last 5 games, losing two and drawing two.

They cannot lose more points if they want to continue their fight for promotion.