Leeds United facing 'whopping' £56m losses if relegated
Leeds United face losing just under £56m from their accounts if they are relegated this season, according to new research done by The Mirror.
The Whites currently sit one point above the relegation zone with a game to go, and one point behind Everton a place above them, but both the Toffees and Burnley have a game in hand on them as it stands.
That means the relegation battle will go to the final day of the season and new information shows that the club who gets relegated from the top flight will have a £55.6m ‘financial black hole’ to try and fill next season.
Writing in their fresh report [May 18] The Mirror say;
“Clubs demoted from the top flight between 2016/17 and 2019/20 – last season hasn’t been included due to the impact of the Covid-19 pandemic – saw their turnovers drop by an average of £55.6m in the season immediately following relegation.
“That works out as a drop of 45 per cent on average. The biggest fall in income source was from broadcasting. Broadcast revenues dropped by an average of £43.8m.
“Commercial revenue dropped by an average of £7.5m for clubs in that first season outside the top flight, while matchday income dropped by an average of £2.5m.”
As if relegation wasn’t a big enough blow to clubs falling out of the top flight, the financial implications are absolutely terrifying and require real planning to get through.
There are parachute payments in place to help those sides, but they tend to make things worse if clubs don’t end up securing promotion back to the top flight immediately.
For Leeds, they have got some top players in the squad that they would likely need to sell to help fill that hole in their finances, but obviously that would make promotion much more difficult and the squad would need rebuilding.
Such a big drop in finances is scary to see, but the club will surely have made plans for this over the course of the season if not beforehand and fans will be praying that there is nothing like what happened last time around coming up.
But the news shows just how important survival is to the club, and why all three clubs will be giving absolutely everything they can until the final moment of the season.