Leeds United dropped £4.3m into the red due to player salaries and scouting expenses last season
Leeds United FC finished its last financial year with pre-tax losses of £4.3m after performance on the pitch during the 2017/18 season “ended in disappointment.”
Posting its financial report for the year ended June 30 2018 on Companies House this week, the football club revealed that it had dropped from making pre-tax profits of £976,367 in 2017 to making pre-tax losses of £4.3m in 2018.
Revenues did did, however, rise 19% from £34m to £40m.
Leeds United said: “The majority of this worsened financial performance is attributable to investment in both player registrations and salaries and scouting expenses.
“However, this was partially offset by the rise in the gain of the disposal of player’s registrations, which rose by £9.2m from £8.9m.”
The club said that its revenue rise to an increase in gate receipts and attendances, as well as merchandising revenues. Its catering revenues also increased by £1.3m – from £3.9m to £5.2m and non-football related income rose by £1.3m – up from just £100,000 in the previous year to £1.4m. This was due to the Selby vs Warrington IBF World Featherweight fight in May 2018.
Leeds United said the year about about “rebuilding the foundations” of the club to deliver long-term success on and off the pitch.
The club added: “Whilst the performance on the pitch ultimately ended in disappointment, there were significant investments in capability and infrastructure which have positioned the club well for future success.”
The club’s manager Thomas Christianson left the club during a spell in the season when Leeds United only gained two points out of a possible 18. After this, Paul Heckingbottom joined from Barnsley FC but “poor form continued” and he became the “second managerial casualty of the year, leaving Leeds on 1st June 2018.”
Marcelo Biesla was the appointed the manager.
Off the pitch, owner Andrea Radrizzani bought Elland Road. The club said: “the famous stadium was modernised throughout the course of the summer”
It said that despite the club’s performance, the club reached the highest season ticket sales level for 15 years – reaching 20,000.
The club added: “Board, players and fans alike all begun the new season aligned in the belief that 2017/18 had gone a long way to building foundation for a succesful season [current season – 2018/19].”
So far in the 2018/19 season, Leeds United FC have performed well and are currently in second place in the Championship, ahead of Yorkshire rivals Sheffield United FC in third place.
