Yesterday saw the release of Leeds United’s 2022–23 financial statements, and like many other teams in a similar situation, they are not particularly interesting to read.
The Premier League has charged three of the five teams Leeds faced relegation from last season for breaking profit and sustainability regulations.
Everton was the first team to get a 10-point deduction, which was later lowered to six on appeal. Nottingham Forest received a 4-point deduction the following month.
The Toffees were subsequently awarded two more points for a second charge last week, and if Leicester City is promoted, they will also have to begin the following season with less points.
Although Leeds supporters may harbor resentment towards three clubs for breaching the rules during their season of collapse, it’s reasonable to argue that the Whites’ accounts are not very attractive.
After learning something “incredible” regarding Leeds accounts, Alan Brazil responds.
The most concerning amount in Leeds’ books, according to football finance specialist Kieran Maguire’s analysis yesterday on Twitter, is definitely the amount they owe in transfer fees.
In the 2022–2023 season, Leeds spent £170 million on new players. However, perhaps more concerning is the fact that they owe other teams £190 million in transfer fee installments, of which they are only expected to collect £2 million.
During two transfer windows, Leeds under Jesse Marsch made significant spending investments to add players such as Georginio Rutter, Tyler Adams, Luis Sinisterra, and Brenden Aaronson.
Speaking on talkSPORT this morning, Maguire claims it is now evident that Andrea Radrizzani, the team’s main owner at the time, used the “Leeds United credit card” to bring in these players, something that concerned Alan Brazil.
Maguire responded, “Well possibly Alan, and the reason for that is Leeds spent a fortune on players last season under Jesse Marsch,” in response to Brazil’s question on potential issues at Leeds.
“Well, that’s great, but we thought the owner was looking for a way out, so where’s he getting the money from?,” Leeds supporters said when they purchased players for £170 million.
“It appears that Radrizzani has successfully utilized the credit card issued by Leeds United.” Leeds consequently owes rival teams £190 million in outstanding transfer fees. In the Championship, how are they going to accomplish that?
In reply, Brazil said, “Woahh! That is simply amazing. How did that just surface? That is really amazing.
Maguire: “The reason is because there are nerds who scan the accounts, find these numbers, and double-check them. That was not what everyone had anticipated. Still, it does explain how the team was able to purchase players the previous campaign.
Brazil: “Nobody like nerds, that’s for sure. Let me tell you, we have a few here, but they don’t go through any accounts! Have you heard, supporters of Leeds? It’s shocking, that.
Leeds accounts show further proof that the club would be better off without Radrizzani.
Additionally, Maguire stated on Twitter that Leeds was demoted despite having the fourth-highest spending, eleventh-highest salary bill, and tenth-most costly team in the Premier League.
The fact that Leeds finished the previous season with a complete disaster illustrates how ineffective Victor Orta was at bringing in players who would contribute both on and off the field.
Brighton FBL-ENG-PR-LEEDS
Leeds’ ability to adhere to the regulations was largely dependent on the sales of Raphinha and Kalvin Phillips; sadly, the replacements that were brought in fell short of expectations.
Leeds was glad to sell Sinisterra in February for less than the initially agreed option-to-buy with Bournemouth in order to obtain more money up front, so it will be interesting to see how their accounts look at this time next year.
Enabling players to go on loan with clubs paying 100% of their salaries should help improve the financial statements. But one thing is certain—Radrizzani was never meant to be a Premier League owner, and 49ers Enterprises is a better fit for managing Leeds.
