Leeds United’s pre-tax loss widened from £12m to £37m,
despite revenue rising £18m (11%) from £171m to a club record £189m, as total
expenses increased by £44m (24%) from £183m to £227m. In addition, they only
booked £1m profit from player sales.
Although Leeds’ £37m loss is obviously not great, it is
actually not too bad in the Premier League, as some clubs reported much higher
losses last season, including Manchester United £150m, Chelsea £121m, Leicester
City £92m, Newcastle United £73m and Tottenham £61m.
Many clubs had lower profits from player trading, due to the
pandemic deflating the transfer market, but Leeds’ result was more because of a
deliberate decision to retain players to cement their status in the top flight.
Leeds have only been profitable once in the last decade –
and that was just £1m in 2017. Since then, losses steadily increased in the
Championship, following the arrival of owner Andrea Radrizzani, as Leeds
invested big sums to help secure promotion, leading to a £62m deficit in 2020.
Leeds’ revenue has increased by £135m since promotion from
the Championship from £54m to £189m, the highest ever for the club. This is 5.5
times as much as it was before Radrizzani bought the club in May 2017. The difference in the top flight is
particularly evident in broadcasting, which is £107m higher, thanks to the
amazing Premier League TV deal. However, there have also been impressive
increases in commercial, up £15m (44%), while match day has more than doubled
from £11m to £25m. Leeds’ revenue
growth since 2018 is the highest of the mid-size clubs, albeit obviously
boosted by the promotion impact.
Broadcasting is the most important revenue stream with 61%,
followed by commercial 26% and match day 13%.
This is the lowest in the Premier League outside the Big Six. This means
that their performance is very good in terms of commercial (particularly) and
match day.
The wage bill has shot up by £100m in the last five years,
so is now almost six times as much as the £21m paid in 2017. Despite the increase, Leeds’ £121m wage bill
is still firmly in the bottom half of the Premier League, sandwiched between
Crystal Palace and Wolves. The top four clubs pay around three times as much as
Leeds.
Despite the increase, Leeds’ £121m wage bill is still firmly
in the bottom half of the Premier League, sandwiched between Crystal Palace and
Wolves. The top four clubs pay around three times as much as Leeds.
Leeds’ £73m debt is pretty low for the Premier League, far
below the likes of Tottenham £853m (to fund their new stadium) and Manchester
United £636m (Glazers’ leveraged buy-out).
If we compare transfer debt to revenue, Leeds owe 55%, which
is the third highest in the Premier League, only behind Aston Villa and
Tottenham. This is something that the club will have to keep an eye on,
especially as these figures do not include their large outlay this season.
Leeds’ £93m owner funding in the last five years is not that
high in the Premier League. In that period, owners at five clubs have put in
more than £200m, including three who have similar aspirations to the Yorkshire
club, namely Everton £574m, Aston Villa £351m and Brighton £216m.
Media reports suggest that the consortium led by 49ers
Enterprises has an option until January 2024 to buy the club (reportedly for
more than £400m). There is speculation that this option could be triggered at
the end of this season, though this could be dependent on whether Leeds stay
up.
Promotion to the Premier League has clearly transformed
Leeds United’s finances, even though “second season” syndrome resulted in them
losing money in 2021/22. They have a structural competitive advantage from
being the only club in the UK’s third biggest city, as seen by the strong
commercial results, so the future is bright - as long as they manage to avoid
relegation.
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