Leeds United Finances 2022/23

A Vineyard For The North

Leeds United’s 2022/23 accounts cover a season when they finished 19th in the Premier League, thus being relegated to the Championship after three seasons in the top flight.

A poor run of results led to the termination of head coach Jesse Marsch in February, but his replacement Javi Gracia lasted less than three months before Sam Allardyce was brought in. However, these changes did not work, as the club was unable to retain its Premier league status.

Ownership

This was the last year of Andrea Radrizzani’s time as Leeds’ majority shareholder after he bought the club in 2017, as he sold his 56% stake in September 2023 to the consortium led by 49ers Enterprises, who already held 44%.

The investment arm of NFL franchise San Francisco 49ers and Radrizzani reportedly agreed on a valuation of £170m following the club’s relegation, which was significantly lower than the £400m that had been mooted in the Premier League.

Chief executive, Angus Kinnear, said, “49ers Enterprises is bringing fresh leadership, management, and a commitment to investment, which I’m confident will meet our ambition to compete for promotion and remain in the top flight as an established Premier League club.”

Profit/(Loss) 2022/23

Leeds United’s pre-tax loss narrowed from £37m to £34m, as revenue slightly rose from £189m to £190m. The financials were significantly boosted by profit from player sales rising from just £1m to £73m, but this was almost entirely offset by £72m growth in operating expenses from £224m to £296m. Net interest payable reduced from £3m to £1m.

It’s worth noting that without the benefit of the hefty player sales, Leeds’ operating loss more than tripled from £34m to £106m.

Gate receipts shot up £5m (22%) from £25m to £30m, thanks to what the club described as “the supporter base’s unflinching commitment”, but there were decreases in both the other revenue streams. Broadcasting dropped £4m (4%) from £116m to £112m, while commercial fell £1m (2%) from £49m to £48m.

There was significant cost growth for the second year in succession, as wages rose £25m (30%) from £121m to £146m, while player amortisation increased £23m (41%) from £58m to £81m. In addition, the club booked £20m of player impairment. Other expenses also rose £3m (8%) to £44m.

Although Leeds’ £34m loss is obviously not great news, this is actually not too bad for the Premier League, as some clubs reported much higher losses last season, especially Aston Villa £120m, Tottenham £95m, Chelsea £90m, Leicester City £90m and Everton £89m.

On the other hand, a few clubs did manage to generate a profit, most notably Brighton £133m and Manchester City £80m. Bournemouth also reported a £44m profit, though this would have been a £27m loss without a £71m loan write-off.

Player Sales 2022/23

Leeds made £73m profit from player sales, a new club record by some distance, thanks to two big money deals, as England international Kalvin Phillips went to Manchester City, while Brazilian winger Raphinha moved to Barcelona. Phillip’s sale represented pure profit, as he was an Academy product.