Leeds United profit and sustainability update after £33.7m loss revealed in accounts — Phil Hay — MOT Leeds News 10/4/24
George Overhill
Leeds United say they were compliant with financial rules in
the top two tiers despite a loss of more than £30million now emerging in their
latest accounts, according to Phil Hay.
The Athletic journalist reported via the outlet’s website on
10 April in the wake of the club’s financial figures for the 2022/23 season
showing a loss of £33.7m on top of a £36m loss the year before.
Despite a record turnover of £189.6m and player transfers
bringing in £73m in the period up to the end of June 2023, “soaring”
administrative costs and an increased wage bill saw the Whites’ operating loss
increase by £71m over the year, while nearly £10m was spent on sacking managers
as the club were relegated from the Premier League in the final season of
Andrea Radrizzani’s ownership.
However Hay says the club recently insisted they remain
within the loss boundaries permitted under profit and sustainability rules by
both the Premier League and the Championship.
Considering the issues that have emerged at promotion rivals
Leicester City it should come as some relief that the Whites are apparently not
set for something similar.
Both are big clubs who dropped out of the top flight last
season but the Foxes made some hefty sales in the summer while Leeds United
were forced to cope with largely low-cost loan exits.
Both Everton and Nottingham Forest have received Premier
League points deductions this season for spending breaches and each have
expressed surprise and anger at the outcomes in light of what they felt were
mitigating situations.
That shows that a club’s claims to be on the right side of
the rules doesn’t necessarily always prove to be the case in the eyes of the
authorities.
The final Leeds United season under Andrea Radrizzani has
not put the club in FFP jeopardy.
But with the 49ers takeover completed in the summer after
the EFL eventually granted approval which had already been secured from the
Premier League that should mean all parties were well aware of the financial
situation at Elland Road.
And logically in light of the fact that the issues at
Leicester have already become clear it would suggest that there would have been
some indication of a similar situation at Leeds United already by now.
