Leeds have released their financial report for the 2015/16 season this week, as they do every year for the previous season, to show how much money is spent doing what and where the money has been lost; such as wages, transfers and everything else which effects the finances of the club.
The overall figure is a loss of £8.9million for the club, which doesn’t seem too good; however the sum for the previous 2014/15 season was negative by a further £2million – which shows the club has made an improvement on the 2014/15. The report also broke down this figure and showed other expenditures within the club which affected the £8.9million overall loss.
The total club wages for the season were totalled at £17.5million, decreasing £2.5million from the 2014/15 season and £5million from 2013/14 season- when owner Massimo Cellino took over the club. One of Cellino’s main aims when the Italian took over the club was to cut the wage budget of the club, and these figures show that he has succeeded with significant reductions since he took over the reigns.
Furthermore, the most recent report shows that the club made just under £3million in profit with transfers; meaning that the sales of players provided a greater income than outcome of costs to bring in new players, resulting in the club making a profit in this area. This also happened in 2014/15 where the club made just short of £10million profit from transfers, mainly because of the transfer of Ross McCormack to Fulham for a reported £11million. Looking back at the transfers within Leeds United, previous figures show that in the last nine reports shared, the club has only spent money in 2014 (£2million) and has made a profit from the other eight years, with the most profitable year for transfers being the 2014/15 season.
Although the £8.9million loss is an improvement on the previous two years, and it being well known that football clubs are very rarely profitable businesses, the profit made from transfer sales- as well as the decrease in wages- may make fans question how the club can consistently be selling their most valuable players on a regular basis and not reinvesting it back into the playing squad, and somehow still making a considerable loss.