Yorkshire Post 31/3/12
Promotion helps Leeds to impressive £3.5m profits
LEEDS UNITED made a profit of £3.5m in their first year back in the Championship.
The Elland Road outfit enjoyed a major financial boost by returning to the second tier as gate receipts soared along with central funding from the Football League.
Turnover was up 19 per cent as a result to £32.6m as Leeds saw the total profit the once-troubled club has made since exiting administration in 2007 break through the £10m barrier.
United’s figures, which relate to the year ending June 30, 2011, compare favourably with recent financial trends across English football.
In 2010-11, Nottingham Forest and Bristol City both lost more than £11m after over-stretching themselves in the push for the Premier League.
Sheffield United, meanwhile, lost £13.6m last season.
Following the release of the figures yesterday, Leeds have now made a surplus in four consecutive years with 2007-08 seeing the club make £4.5m.
The following 12 months saw United make £15,000, while in 2009-10 – when promotion from League One was secured – a profit of £2.072m was posted.
Perhaps the most encouraging aspect of the most recent figures, however, is that a surplus was made without having to sell any players.
In 2009-10, for instance, the sale of Fabian Delph turned what would have been an operating loss of £670,000 into a seven-figure surplus.
Players sales were also responsible for the small profit made in the previous year.
Last season, however, United made an operating profit of £939,000 before player sales were taken into account.
A major reason for this was the huge increase in central payments from the League that clubs in the Championship receive compared to those in League One.
For Leeds, this meant a substantial rise from the £757,000 banked in their promotion year to £4,637,000 last term.
Other income that rose considerably once back in the second tier included gate receipts, which were up 8.3 per cent to £12,711,000 – or around 39 per cent of turnover.
Taking Arsenal to an FA Cup replay also boosted the Elland Road coffers due to both ties being shown live on television.
Costs also rose following promotion to the Championship with the wage bill rising significantly from £7.7m to £11.6m.
The rent on Elland Road and Thorp Arch also went up during the year – a rise is factored in every October as part of the 25-year lease signed in 2004 – but these increases were more than offset by the extra income promotion brought.
One recent outlay not included in the figures released yesterday was the cost of building the new East Stand extension, which opened just before Christmas.
According to Leeds City Council’s planning documents last summer, the cost of the work was around £7.5m. United have taken out a loan of £5m to part-fund the development, suggesting they were able to cover a third of the money from existing club funds.
Yesterday’s figures also revealed Leeds City Holdings, the parent company of Leeds United, made an overall profit of £2.98m on turnover of £34.445m. Operating profit was £509,000. Last season saw Leeds finish seventh in the Championship.
Promotion helps Leeds to impressive £3.5m profits
LEEDS UNITED made a profit of £3.5m in their first year back in the Championship.
The Elland Road outfit enjoyed a major financial boost by returning to the second tier as gate receipts soared along with central funding from the Football League.
Turnover was up 19 per cent as a result to £32.6m as Leeds saw the total profit the once-troubled club has made since exiting administration in 2007 break through the £10m barrier.
United’s figures, which relate to the year ending June 30, 2011, compare favourably with recent financial trends across English football.
In 2010-11, Nottingham Forest and Bristol City both lost more than £11m after over-stretching themselves in the push for the Premier League.
Sheffield United, meanwhile, lost £13.6m last season.
Following the release of the figures yesterday, Leeds have now made a surplus in four consecutive years with 2007-08 seeing the club make £4.5m.
The following 12 months saw United make £15,000, while in 2009-10 – when promotion from League One was secured – a profit of £2.072m was posted.
Perhaps the most encouraging aspect of the most recent figures, however, is that a surplus was made without having to sell any players.
In 2009-10, for instance, the sale of Fabian Delph turned what would have been an operating loss of £670,000 into a seven-figure surplus.
Players sales were also responsible for the small profit made in the previous year.
Last season, however, United made an operating profit of £939,000 before player sales were taken into account.
A major reason for this was the huge increase in central payments from the League that clubs in the Championship receive compared to those in League One.
For Leeds, this meant a substantial rise from the £757,000 banked in their promotion year to £4,637,000 last term.
Other income that rose considerably once back in the second tier included gate receipts, which were up 8.3 per cent to £12,711,000 – or around 39 per cent of turnover.
Taking Arsenal to an FA Cup replay also boosted the Elland Road coffers due to both ties being shown live on television.
Costs also rose following promotion to the Championship with the wage bill rising significantly from £7.7m to £11.6m.
The rent on Elland Road and Thorp Arch also went up during the year – a rise is factored in every October as part of the 25-year lease signed in 2004 – but these increases were more than offset by the extra income promotion brought.
One recent outlay not included in the figures released yesterday was the cost of building the new East Stand extension, which opened just before Christmas.
According to Leeds City Council’s planning documents last summer, the cost of the work was around £7.5m. United have taken out a loan of £5m to part-fund the development, suggesting they were able to cover a third of the money from existing club funds.
Yesterday’s figures also revealed Leeds City Holdings, the parent company of Leeds United, made an overall profit of £2.98m on turnover of £34.445m. Operating profit was £509,000. Last season saw Leeds finish seventh in the Championship.