Leeds United Football Club has filed the financial statements for the period ended 30th June 2018 at Companies House.
The accounts show that the club generated a £4.3m net ‘on paper’ loss and despite strong revenue growth and continued operational cost control, the business required an £11.8m cash injection from shareholders to maintain operations and improve on-field competitiveness.
The £4.3m on paper loss for the financial year does not reflect that £28.0m was spent on player acquisitions over the same time period, nor that historical liabilities totalling £1.49m had to be repaid.
49ers Enterprises Leeds SPV LP took a minority share of Leeds United in May 2018. Key Points from the Accounts:
- For the year ending 30th June 2018 the total club turnover rose by 19% to £40.7m driven mainly by increased attendances and non-footballng revenues.
- Net losses of £4.3m were generated compared to a net profit of £1.0m during the prior year despite profits generated from player trading rising £9.2m to £18.1m. Player wages increased significantly to ensure we created the foundation of a squad that could effectively compete for promotion over the medium term.
- Net assets at 30th June 2018 were £14.4m, this compared to net liabilities of £1.1m as at 30th June 2017.
- Transfer spend invested into the first team playing squad totalled £28.0m during the year ending 30th June 2018 compared to £6.8m during the year prior.
- During the year ending 30th June 2018, the club converted £8,834,908 of debt due to Greenfield Investment Pte Ltd in to share capital and issued £11,000,000 of shares to 49ers Enterprises Leeds SPV LP, significantly strengthening the balance sheet.
- Average home league attendance increased by 14% from the previous season to 31,521.
- During 2016, retail income continued to grow with sales rising by 16% to £6.7m, driven by the first full year of the Merrion Centre store and increased focus on leisure wear
- Once again the club has continued to carefully manage its operating cost base effectively whilst investing in the first team playing wages which represented 53% of turnover compared to 47% during the prior financial period.
- Average age of players in the first team squad at the commencement of the 2017-18 season was 22 years, identical to the prior season.
To view Leeds United accounts for the year ending 30th June 2018 please click here.
