Leeds post £26m pre-tax profit for 2020-21 campaign
Leeds United recorded a pre-tax profit of £26m for the COVID-hit 2020-21 season – only their second annual profit in the past 10 years.
Soaring TV income thanks to promotion to the Premier League in 2020 has contributed to a major turnaround after losing £62million in their last league tenure, highlighting the financial gap between the two divisions.
Leeds’ annual revenue rose from £54m to £171m, with central revenue payments rising from £7m in 2019-20 to £110m in 2020-21 and additional television payments have increased from £1.4m to £22m.
Leeds have also secured major new sponsorship deals, including deals with shirt sponsor SBOTOP, worth around £7million a year, and kit manufacturer Adidas.
The club played almost all of last season without a crowd at Elland Road, reducing gate receipts to just under £2m, and £63m was spent on initial payments for new signings during their first summer transfer window at the back of the promotion.
Their wage bill fell from £78m to £108m, but despite increased spending, with administrative costs reaching £152m, Leeds recorded a profit for the first time since 2017 – l year in which current President Andrea Radrizzani took control – and only the second since 2011.
Some £5million has been spent on improving Elland Road and other properties used by the club, including the Thorp Arch training ground, and on the meeting room front, a share purchase by 49ers Enterprises, a minority shareholder in Leeds, in December 2020 provided an injection of £23m.
Shareholder loans worth £21m were canceled during the accounting period and some £8m of loans were converted into shares.
A ninth-place finish in the Premier League under former manager Marcelo Bielsa secured additional income, contributing to an encouraging financial picture at the end of a season where Premier League finances have been hit hard by COVID-19.
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