Radrizzani 'has been a good owner at Leeds'

The authoritative Swiss Ramble reviews the accounts of Leeds United. He comments, 'To date Radrizzani has been a good owner at Leeds, buying back the ground and investing significantly more in the squad. However, it remains to be seen whether he is in it for the long-term, if Leeds fail to win promotion, especially given the issues at his company Eleven Sports. Under previous owners Leeds have adopted a very conservative strategy that has made it difficult for the club to compete. They are now spending much more than before, which gives them a better chance, though they are (financially) still way behind clubs with parachute payments. If parachute payments were excluded, Leeds would have the highest revenue in the Championship.'

The club posted a £4.3m loss, compared to a £1.0m profit the previous season, despite revenue growing £6.6m (19%) from £34.1m to £40.7m and profit on player sales doubling from £9m to £18m, due to 'investment in both player registrations and salaries and scouting expenses'.

The main reason for the £6.6m revenue growth was a £5.5m (33%) increase in commercial income to £21.8m (catering, merchandising and the Selby-Warrington boxing fight), though gate receipts also rose £1.1m (11%) to £11.3m. Broadcasting was flat at £7.7m.

Revenue has grown by an impressive £16.3m (67%) in last 3 years from £24.4m to £40.7m, though £5.2m was due to bringing catering back in-house. Other commercial up £5.3m, TV £3.3m and gate receipts £2.5m. There should be a further increase in 2018/19 (higher crowds, merchandising, etc).

Almost all clubs lose money in the Championship with only five profitable, so the Leeds £4m loss is one of the smallest in 2017/18. The loss would have been higher without £18m profit on player sales, mainly arising from Chris Wood’s move to Burnley. This was the third highest in the Championship, only behind the large profits made by two clubs relegated from the Premier League. As Radrizzani explained, 'Unfortunately to sustain a club in this league we need to sell one or two players each year.' 2018/19 will include Ronaldo Vieira to Sampdoria.

Leeds have only made money once in last six years (and that was just £1m in 2016/17), though losses have significantly improved since the £20m reported in 2013/14. Following the investment in Bielsa, his coaching team and the squad, the 2018/19 loss is likely to be much higher.

TV income was flat at £7.7m. Most Championship clubs receive £7-8m TV money, including £2.3m EFL distribution and £4.5m Premier League solidarity payment. Leeds benefited from being shown live 20 times, but the sums involved are not that much: £100k home game, £10k away.

Gate receipts increased £1.1m (11%) to £11.3m, as average attendance grew from 27,698 to 31,521. This was the 2nd highest match day income in Championship, only below Villa £11.8m, and Leeds’ highest for this revenue stream since £11.6m in 2011/12.

Commercial revenue was by far the highest in the Championship. Commercial income rose £5.5m (33%) to £21.8m, comprising merchandising £6.2m (up £0.9m, impact of Merrion Centre store), catering £6.2m (up £1.3m) and other revenue £9.9m (up £3.2m including Selby-Warrington boxing fight).

The wages to turnover ratio increased from 61% to 77%, but this was still one of the lowest in the Championship. This is some achievement, given that over half the clubs in this division have a ratio over 100%.

Threat of financial calamity removed from Baggies

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The Political Economy of Football V2

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