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

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...

A poor financial record, but new hope at Everton

I recently saw an amusing video online in which a group of Everton fans were rebuked in jest for being hopeful. Football fans in general tend to swing between excessive optimism and excessive pessimism, but for many it seems that moaning is in their bloodstream (Spurs fans probably take the trophy). However, Everton fans have had plenty to moan about on and off the pitch. Let’s hope that a new era is about to begin for this grand old club. Everton’s 2023/24 financial results covered a fairly momentous season, when they ended up 15th in the Premier League, though they would finished three places higher if they had not received an 8-point deduction for breaching the Premier League’s Profitability and Sustainability Regulations (PSR). It was a worrying time for Everton fans, as the club faced a “perfect storm” of issues, including large financial losses, an ever increasing debt burden, a challenging stadium build and the tortuous sale of the club. There were eve...

The Political Economy of Football V2

Search This Blog