Leeds United have recorded numerous losses in their financial report for the 2023/24 season, though this was always expected following relegation from the Premier League.
The campaign denotes their first season back in the Championship and their maiden full term under the main control of 49ers Enterprises. Despite a reduction in revenue and an increase in losses, several underlying numbers show that United hold a relatively stable financial footing.
There is a lot of jargon and figures within the 34-page document, which was signed off by CEO Angus Kinnear ahead of his summer switch to Everton. So Leeds Live has broken down the four key takeaways from the financial account.
Revenue down but still good
The total income United drummed up last season sank by 33% to £127.6million - but this is still a mighty figure for the Championship. The last cycle - for the 2022/23 season - saw Norwich City top the revenue chart with £76m.
And for further comparison, United’s revenue in the Covid-hit promotion season was £78.3m. Their last non-promotion season saw the club rake in £46.2m.
We will get onto why revenue has, as expected, dropped for the 2023/24 campaign but it’s important to highlight the reason why the club has still been able to break the £120m mark. Commercial income dropped but only by around £5m to £43.3m, which is not bad going.
Then there is matchday revenue, which rose in the Championship - aided by more home games and the play-off semi-final home leg. This increased from £29.9m to £30.6m. Merchandise rose by £1.4m to £25.4m, too.
Big loss increase
While Leeds are not thought to be in any Financial Fair Play danger, the cash loss - before tax - did rise 80 per cent to £61m. This was not unexpected with the revenue generated in the Championship always much lower than the Premier League.
The biggest hits came in broadcast and central distribution - the amount clubs receive from the league amid participation and performance. TV money dropped from £17.4m (in 2022/23) to just £2.6m, while central distribution money fell from £94.1m to £51m - showing the chasm between the two divisions.
Losses may have been worse if not for the £40m first-year parachute payment, which dropped to around £32m for this campaign. It will sink as low as £16m next season if Leeds fail to go up. In the meantime, other underlying losses reduced by 10% to around £70m.
Sales turnover
The net turnover for transfers for the 2023/24 period was £31m, having drummed up £69m from player sales. This included the exit of Tyler Adams to Bournemouth for £20m and the departure of Rodygo to Qatar.
The figure does not include the big summer sales of Archie Gray, Georginio Rutter and Crysencio Summerville, as they fell outside of the accounting period, which runs up until June 30 every year. It means they will be included in this season’s totals and provide a big boost to the coffers, which may be crucial if United do not go up this term.
On the other foot, £38m was splashed during the 2023/24 term on the likes of Joel Piroe, Ethan Ampadu and Ilia Gruev. Amortisation - paying a player’s transfer fee across the length of their contract - fell by 27% to £60m. The club are owed £69m in transfer fees but are themselves indebted to pay out £142m.
Wage saving
Most contracts these days will have relegation clauses in them that will see a reduction in salary should a club exit the league they are in. This is no different with Leeds and wages fell by some 24% from the final Premier League season.
This will be in part due to the sales of wage-heavy players combined with the fact that new arrivals will have agreed to lower packages anyway. In the season before United went down, wages were at £145.9m - last term this figure reduced to £84m.
The average weekly wage fell to £42,603-a-week from £73,945. As a result the amount of income spent on wages reduced from 77% to 66%, in proportion to the lower revenue earned in the EFL.
Wages also include staff members. Figures show that in the 2022/23 season, directors were paid £1.36m This slashed to £401,000 last season. The transfer fees paid for last season’s squad, whenever their arrival was, sat at £281m.
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