In the midst of the battle for automatic promotion, Leeds United’s financial records from 2023-24 were released this week and it shows a 33% drop in turnover and a huge amount still owed in transfers.
The last three seasons have had an impact on Leeds’ finances. Mass spending under Jesse Marsch in the 2022-23 season was then coupled with The Whites suffering relegation, hindering the club financially.
Not only that, but Victor Orta’s loan clause prevented Leeds from selling players. While it quickly saw the wages of their Premier League stars removed for a season, it also stopped Leeds from bringing in cash.
Clubs could simply come to Leeds with a loan bid for a player with the clause in their contract, and they’d leave on loan. Eight in total – including the likes of Brenden Aaronson, Jack Harrison and Max Wober.
Football finance expert Adam Williams explains Leeds figures
Kieran Maguire summed up the findings on social media. He outlined how Leeds’ wage bill has been dramatically reduced compared to the season prior, but that turnover was a whopping 33% down.
Leeds lost more than £60m before tax. LeedsUnited.News spoke to Adam Williams, who says that the £61m loss is the club’s biggest-ever. Williams reminded fans that while it looks bad, it is pretty normal.
“These accounts are pretty typical of a club who has spent three seasons in the Premier League and the been relegated. On paper, you see the £60m loss – which is their biggest ever – and it looks worrying.
“But you have to remember these accounts are for 2023-24 when, despite having been relegated, they had a negative net spend in the Championship. They gambled on promotion there,” Williams told LUN.
“Their wage bill, by Championship standards, stayed very high. But it wasn’t such a high-risk manoeuvre that they won’t have been able to cancel it out with player sales in 2024-25 as far as PSR is concerned.
“Their player trading record is in the green by about £110m this season, so I suspect they will swing back to profit, which eliminates any anxieties around PSR in the current assessment window,” Williams said.
Adam Williams can’t understand how Leeds complied with PSR
Profit & Sustainability Rules are run on the basis over a three-year period. With 2023-24 being the final of those three years, the PSR timeline includes the second and third years of the three years in the top tier.
Williams says that Leeds have lost in total, £130m from 2021-22, 2022-23 and 2023-24. Way more than the permitted £83m limit – and admits it is “difficult” to understand how Leeds have complied with rules.
“For the three-year PSR window from 21-22 to 23-24 Leeds have lost over £130m, which is well over the £83m limit. Even with add-backs and allowable expenses, it’s difficult to see how they’ve got over the line.
“Under PSR, academy costs, infrastructure investment, depreciation, spending on the women’s team and community investment are exempt from the PSR calculation. It’s hard to see how that adds up.
“[They need] £47m a year to get under £83m limit even looking through a charitable lens. Depreciation is just under £17m. Their academy, at the very most, £5m per year to run. So you’ve still £15m to make up.”
But according to Williams, the noises from The Football League and those in the media say Leeds have managed to stay on the right line of PSR. He says accountants have tricks they can use to work it out.
“The noises from the EFL and local press is they are the right side of the line. As long as the breach isn’t too flagrant, there are sleights of hands the accountants use. In the spirit of the rules, that’s probably fair.”
It feels like Leeds were under more pressure to sell the way they did in the summer of 2024 than they really let on. But, that the sales of Archie Gray, Crysencio Summerville and Georginio Rutter were needed.
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