Leeds United’s 2022/23 accounts were released yesterday and just like many other clubs in a similar position, they don’t make for great reading.
Three of the five clubs Leeds were fighting relegation against last season have all been charged by the Premier League for breaching profit and sustainability rules.
Everton became the first side to be deducted 10 points which was then reduced to six on appeal, before Nottingham Forest were then docked four last month.
The Toffees were then handed a further two points for a second charge last week, while Leicester City are also facing starting next season on minus points if they are promoted.
While Leeds fans can potentially feel aggrieved at three clubs breaking the rules in the season they went down, it would be fair to say the Whites’ accounts are not overly pretty.
Alan Brazil reacts after hearing something ‘incredible’ about Leeds accounts
Football finance expert Kieran Maguire yesterday posted a deep dive onto Leeds’ accounts on Twitter with the most alarming figure undoubtedly what they owe in transfer fees.
Leeds spent £170 million on signings in the 2022/23 season, but perhaps more worryingly, they owe £190 million in transfer fee instalments to other clubs, but are only due to receive £2 million.
Under Jesse Marsch, Leeds spent big to bring in the likes of Georginio Rutter, Luis Sinisterra, Tyler Adams and Brenden Aaronson in two transfer windows.
Andrea Radrizzani was the majority owner at the time and speaking on talkSPORT this morning, Maguire says it is now clear he used the ‘Leeds United credit card’ to bring in these players, something which Alan Brazil was left alarmed by.
When Brazil asked if trouble could be brewing at Leeds, Maguire said: “Well possibly Alan, and the reason for that is that under Jesse Marsch Leeds spent a fortune on players last season.
“They bought players for £170m and Leeds fans were saying, ‘well that’s great but we thought the owner was looking for a way out so where’s he getting the money from?’
“It turns out he [Radrizzani] has effectively used the Leeds United credit card. So Leeds now owe other clubs £190m in unpaid transfer fees. How are they going to do that in the Championship?”
Brazil responded: “Woahh! That is unbelievable. How has that just come out? That is incredible.”
Maguire: “It is because there are nerds who go through the accounts and spot these figures and check them. Nobody was expecting that. But it does explain how the club was able to buy players last season.”
Brazil: “Nobody likes a nerd that’s for sure, we have got a few here but they don’t go through any accounts let me tell you! Did you hear that Leeds fans? That is a shocker.”
Leeds accounts reveal more evidence club better off without Radrizzani
Maguire also wrote on his Twitter that Leeds were relegated with the 11th highest wage bill, fourth highest spend and 10th most expensive squad in the Premier League.
Leeds went down with an absolute whimper last season and so that shows just how poor Victor Orta was at finding signings that were not only beneficial on the pitch, but off it too.
The sales of Kalvin Phillips and Raphinha were practically paramount to Leeds complying with the rules, but unfortunately the replacements brought in were not up to the level.
It will certainly be interesting to see how Leeds’ accounts look this time next year, considering they were happy to sell Sinisterra in February for less than the originally agreed option-to-buy with Bournemouth, in order to get more money up front.
Allowing players to leave on loan with clubs covering 100 per cent of the wages should also be beneficial to how the accounts looks. One thing is for sure, though, Radrizzani was not cut out for owning a Premier League club, and Leeds are now in better hands with 49ers Enterprises.