Leeds United’s financial accounts from 2023-24 have been revealed, the first season after relegation from the Premier League and Kieran Maguire has posted a summary on social media.
Daniel Farke’s first summer at Elland Road brought about major frustration for the German manager, who soon came to realise that his hands would be tied by a number of players following the club’s relegation.
Victor Orta’s inclusion of a relegation loan clause in some contracts prevented Leeds from selling players. Clubs simply made loan bids for any of the players with the clause and sign them without Leeds’ say.
Eight went in total – the likes of Jack Harrison, Robin Koch and Brenden Aaronson. Now, the numbers have come to light from a season, which also saw a huge reduction of income that comes with relegation.
Kieran Maguire posts summary of Leeds United’s accounts on X
Maguire has made a name for himself when it comes to the financial part of modern English football. A minefield for most football fans to understand and make light of, but Maguire has helped to do that.
The highlights are that revenue was £128m for 2023-24, a huge 33% down on the season beforehand. Wages were reduced by almost half, while Maguire also highlights how much Leeds still owe in transfers.
Maguire posted: “Leeds United 23/24 accounts published. Key figures. Revenue: £128m, 33% [down]. Wages: £84m, 42% [down]. Amortisation: £60m, 27% [down]. Underlying loss: £70m, 10% [down].
“Player sale profits: £34m, 54% [down]. Loss before tax: £61m, 80% [up]. Player purchases: £38m. Player sales/departures: £69m. Transfer fees paid for total squad: £281m,” the finance expert continued.
“Transfer fee receivables [cash owed in instalments from other clubs]: £69m. Transfer fee payables [cash owed in installment to other clubs]: £142m,” Maguire said. The latter figure is down from a huge £190m.
What do all the numbers mean as 2024-25 season nears end…
Reductions in revenue, amortisation, player sale profits and losses before tax are the reasons why clubs fail financially with relegation. Without the Premier League’s TV money, clubs make losses in these areas.
Leeds have made losses, but they are manageable. A 33% reduction in turnover sounds bad but given the context and comparison with other Championship clubs – often operating at around £50m – it is strong.
Amortisation, losses before tax and reduced profit from player sales are inevitable – though the records will show player sales dramatically increased for 2024-25 due to Archie Gray, Georginio Rutter and more.
Perhaps, the most-alarming figure is that Leeds still owe a whopping £142m in transfer fees and are only owed £69m. A big chunk of that will have to be paid this summer and could affect any summer spending.
However as aforementioned, that £142m figure is £48m down from last summer’s £190m – and the sales of Gray, Rutter, Crysencio Summerville and Glen Kamara will help ease the enormity of the cash owed.
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