Leeds United Post £26m Pre-Tax Profit

Leeds United have recorded a pre-tax profit of £26m for the 2020/21 financial year, only the second time in a decade they have done so.

Despite the negative effects of the Covid-19 pandemic, turnover rose from £54m to £171m, central revenue payments rose from £7m in 2019-20 to £110m in 2020-21 and additional TV payments increased from £1.4m to £22m.

Additional TV income played a key role in the club’s financial turnaround from a £62m loss in their final Championship term as well as a boost from new sponsorship deals which included agreements with kit manufacturer Adidas and shirt sponsor SBOTOP.

Despite big increases in wages, from £78m to £108m, and added administrative costs, Leeds recorded a profit for the first time since 2017 – the year when current chairman Andrea Radrizzani took control – and only the second since 2011. A total of £63m was spent in initial payments for new signings in the first summer transfer window since promotion was assured.

Around £5m was spent on improving the Elland Road stadium and other property used by the club, including the training ground at Thorp Arch. Elsewhere, a purchase of shares by 49ers Enterprises, Leeds’ minority shareholder, in December 2020, provided an injection of £23m.

Shareholder loans worth £21m were waived in the accounting period and some £8m of loans were converted into shares.

The Covid-19 pandemic forced the club to play almost the whole of last season without crowds at Elland Road, cutting gate receipts to just under £2m.

Speaking of the results, Chairman Andrea Radrizzani, said: “Angus, Victor and I have worked tirelessly to ensure that our team is competitive in the Premier League whilst guaranteeing the club stays financially sustainable.

“The accounts show that we are on the right track. Alongside our partners, we will continue to invest responsibly in the club so we can meet our objectives on and off the pitch.”