Leeds United is fighting for automatic promotion this season, but off the pitch, the club is dealing with major financial problems.
The latest records from the 2023-24 season show a massive 33% drop in turnover and a huge debt still left from transfers.
This raises serious questions about how Leeds is staying within the Football League’s financial rules.
Relegation Hits Leeds Hard
The past three seasons have had a big impact on Leeds United’s money situation.
When Jesse Marsch was in charge, the club spent heavily in the transfer market during the 2022-23 season.
But when Leeds got relegated from the Premier League, that spending became a major problem.
Former director Victor Orta’s loan clause made things even worse. Leeds was unable to sell players properly because clubs could simply take them on loan instead.
Big names like Brenden Aaronson, Jack Harrison, and Max Wober all left on loan deals, meaning Leeds lost their Premier League wages but didn’t get any transfer fees to help balance the books.
Expert Explains Leeds’ Financial Figures
Football finance expert Adam Williams looked at the figures and revealed some shocking facts.
Leeds lost more than £60 million before tax last season, making it their biggest-ever financial loss. Even though the club cut its wage bill, the drop in revenue was too big to ignore.
“These accounts are pretty typical for a club that has spent three years in the Premier League and then got relegated,” Williams explained.
On paper, a £60m loss looks bad, but it’s not unusual for a club in Leeds’ position.
Despite the worrying figures, Leeds still had a positive balance of £110 million in player trading.
This means that by selling players and reducing wages, they are trying to stay financially safe.
However, Williams says Leeds were desperate to sell players in the summer of 2024, suggesting they were under more financial pressure than they admitted publicly.
Leeds United and the Profit & Sustainability Rules (PSR)
The EFL’s Profit & Sustainability Rules (PSR) allow clubs to lose a maximum of £83 million over a three-year period.
Leeds has lost £130 million in that time, which should mean they have broken the rules. However, Williams says Leeds has somehow managed to stay within the legal limit.
For the three-year PSR window from 21-22 to 23-24, Leeds has lost over £130m, which is way over the £83m limit.
He said. “Even with exemptions like academy costs, women’s football, and community investment, it’s difficult to see how they have complied.”
Some experts believe Leeds’ accountants have found legal loopholes to avoid punishment.
The Football League and local media suggest that Leeds is still on the right side of the PSR line.
Williams believes there are “tricks accountants can use” to work around the rules without breaking them completely.
What’s Next for Leeds?
Leeds United’s financial situation makes promotion back to the Premier League even more important.
If they fail to go up, they may have to sell more key players to stay financially stable.
This could mean stars like Archie Gray, Crysencio Summerville, or Georginio Rutter being sold to balance the books.
For now, the focus is on getting results on the pitch, but the club’s financial problems won’t go away anytime soon.
If Leeds doesn’t secure promotion, the future could become even more uncertain.
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