Kieran Maguire sends message to panicking Leeds United fans after increase in player wages
Kieran Maguire believes Leeds United fans should not panic about the estimated £37million in losses that was evident in the club’s accounts for the 2021/22 season.
The Whites’ accounts confirmed that turnover at Elland Road last season was £189million, an £18million increase on the previous accounting period.
However, the club recorded an operating loss of £34million, with the annual wage bill rising significantly due to big-money transfers for the likes of Dan James, Jack Harrison and Junior Firpo.
Speaking on The Price of Football podcast (13 April, 19:30), Maguire admitted that the sales of Raphinha and Kalvin Phillips last summer would balance the books for the Whites and leave their accounts looking far healthier than 2021/22, in which they lost “a lot of money”.
“So Leeds, fantastic revenues, again it is indicative of the potential of the club, especially if Elland Road is expanded in due course,” he said.
“But whilst they got record revenues of £189million, they have also got what I would call second season blues.
“What we have seen is that the wage bill has gone up, and I estimate that the wage bill has gone up on average of £7,000 per week, so they ended up losing £37million in 2021/22, and this is for a club who intuitively is in the middle classes of the Premier League.
“To lose £37million in the Premier League is a lot of money, but what I will say is that they have subsequently had the sales of Phillips and Raphinha, so I’d expect the results to be much better in 2022/23.
“So for those Leeds fans who are panicking a bit, I know they’re not having the best of seasons, panic not, it should be better next year, as far as the numbers are concerned.”
Promising
The increase in player salaries was always going to be expected as the club pumped more money into what was mainly a Championship-quality squad.
Unless a club wants to be relegated straight back down to the Championship, such investment is often needed.
The likes of Nottingham Forest’s investment last summer, and Aston Villa in recent years, highlights the need to bump up player salaries in order to remain in the Premier League.
Leeds United seem to have struck a nice balance between splashing the cash on the likes of club-record signing Georginio Rutter and selling marquee players such as Raphinha and Phillips in big-money deals.
Although these exits weren’t included in the 2021/22 accounts, they should make the club’s numbers look far healthier for the 2022/23 season.
Hopefully, along with the imminent plans to redevelop Elland Road, Leeds’ finances are in a stable place – as long as the club stave off relegation under Javi Gracia this term.
In other Leeds United news, Ian Wright cannot believe his eyes after footage surfaces of a Leeds player on social media.