Dr Dan: Leeds United made decent profits despite £21m shareholder loans waived
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist. Each week he’ll be giving his views on the biggest talking points at Leeds United...
Leeds United made a small profit despite the £21million shareholder loans that were written off.
That’s according to Dr Dan Plumley who claims that the TV revenue from the Premier League has done wonders for Leeds’ financial model.
The Whites made losses in all three of the seasons before getting promoted to the top flight.
In the EFL, broadcasting revenues are a fraction of what they are in the Premier League.
Now, with the Whites set to retain their top-flight status, they are in line to receive similar revenues for next year as well.
Discussing this exclusively with MOT Leeds News, the Sheffield Hallam University expert said, “Even if you take the £21million which was written off out of the equation, they still would have made a small profit.
“TV revenue has done wonders as you can see that they’ve been making losses for the last three years but now their revenue has gone up from £54million to £171million.
“You’ve increased wages by £20million which is the main cost but then your revenues have gone up by over £120million.
“The wages to turn over ratio is also now 66 per cent and it was a 144 in the year they got promoted.
“The next set of accounts will show the same thing and it looks like they’re staying up as well.”
Per the Athletic, £8million of loans were converted into shares but their revenue tripled over the last year.
Their pre-tax profit of £26million is also just their second annual profit in the past 10 years.
In other Leeds United news, the Whites are leading the race to complete a major signing and have already opened talks to seal a £25m deal.