Leeds United: 3 things from the financial records

Today Leeds United announced that the club’s financial statement, and that of parent company Eleonora Sport Limited for the year ending June 30 2015 had been filed at Companies House.

The overall direction of the financial statement was a massive improvement on the previous financial fortunes of Leeds United that saw the club enter a transfer embargo with debts of £22.9m.

Three things emerging from the submitted financial records

1. Things are much improved over the last financial period

The last time Leeds United submitted financial records for the period ending June 30 2014, the club was hit by a Football League transfer embargo with losses of £22.9m – above the £6m ‘deviation’ permitted under the Football League’s Financial Fair Play (FFP) rules.

In this term’s submission, the losses have dropped from £22.9m for the financial period ending 2014 to just a loss of £2m for the last set of records that have just been submitted. As the club point out, the careful management of “its operating cost base” has allowed Leeds United to make a 91% reduction in losses made.

2. Things seem to be looking up in other areas

When the 2014 set of financial records were submitted, the ones with the overall £22.9m losses on them, Leeds United had liabilities totalling £13.5m. This time around has seen this figure wiped out and the currently submitted records showed that Leeds United actually had net assets of £1m; this representing a turnaround of £14.5m.

3. Leeds United owe a debt towards Massimo Cellino

Love him or loathe him, the current owner of Leeds United has sunk money into Elland Road and the submitted accounts are testament to that. These show that Eleonora Immobiliare SpA, who are the parent company of Eleonora Sport Limited, have injected capital to the amount of £42.96m into Leeds United during their involvement with Leeds United.

Massimo Cellino himself told the club website that it was a club effort that resulted in the massively different set of results submitted for the year ending June 30 2015. Cellino gave praise saying,

“I would like to thank the senior management team and all of our employees for their hard work and effort during this difficult period to help achieve these improvements in the business performance of the club.

“The accounts illustrate the commitment that has been made to resolve the financial issues which have surrounded Leeds United Football Club. The club is now on a stable financial footing for the first time in many years.

“We are confident that we can continue to make further improvements in the years ahead. We hope that we can now finally begin to focus and invest the club’s income, generated through our supporters and sponsors, into improving the quality of the playing squad and performances on the pitch.”

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