2018-19 £21.4m loss

Leeds United news here, transfer rumours, club affairs, players, fans, etc.
Specific match discussions should go in the category below.
zigzag
David O'Leary's baby-sitter
Posts: 789
Joined: 14 Nov 2012, 12:27

2018-19 £21.4m loss

Post by zigzag »

Just reported that in 2018-19 the pre-tax loss was £21.4m, against £4.3m loss the previous accounting year

Link to BBC article https://www.bbc.co.uk/sport/football/52213306
Deleted User 728

Re: 2018-19 £21.4m loss

Post by Deleted User 728 »

I'm sure a few people will be unhappy that it isn't £29,999,999.99 because, of course, that level of spending would have guaranteed our promotion.
gilesdriveby
Simon Grayson's Hairdresser
Posts: 575
Joined: 25 Feb 2014, 22:54

Re: 2018-19 £21.4m loss

Post by gilesdriveby »

Rigger You probably may be correct. However having watched the second Sunderland till I die series spending money (on the likes of Will Grigg) does not guarantee results or promotion. The monies that we have spent on Augustins and Poveda wages have not to date provided any benefits.
isrodger
Howard Wilkinson's military attaché
Posts: 4177
Joined: 25 May 2009, 09:57

Re: 2018-19 £21.4m loss

Post by isrodger »

A few observations.

Wage bill is completely out of control.
Whilst AR has lent the company funds zero additional capital was added throughout the period.
Clearly is difficult to ascertain what expenses are being taken by Group (AR) however there is a £150k pa management charge in addition to £1.5m pa rent for the ground.
FFP loss is circa £17m

We appear to be forward selling some of our transfer fee income / debt.
User avatar
One Eyed Thompson
Brian McDermott's optician
Posts: 268
Joined: 21 Jan 2017, 17:39

Re: 2018-19 £21.4m loss

Post by One Eyed Thompson »

I take it the FFP rules are going to be adjusted seeing as all clubs are haemorrhaging money at the minute. Was the figure £39 million over a three year period? Surely the powers that be have to give some flexibility.
Barham
Jock Stein's Brasso dealer
Posts: 8
Joined: 11 Aug 2015, 15:12

Re: 2018-19 £21.4m loss

Post by Barham »

So that's a £25.7m loss over two years. If we don't get promoted, presumably we will crash through that £39m over 3 year rule and get a point deduction next season, especially if we still have to pay £15m for Costa and any other commitments we have made. We would have no choice but to sell Phillips and our other star assets for whatever we can get for them.

Getting to the promised land is our only hope.
isrodger
Howard Wilkinson's military attaché
Posts: 4177
Joined: 25 May 2009, 09:57

Re: 2018-19 £21.4m loss

Post by isrodger »

Note - a transfer fee is amortised over the length of the contract for the purposes of FFP. So therefore Costa is a £3m hit the P&L pa
whitedancer
David O'Leary's baby-sitter
Posts: 795
Joined: 27 Jul 2014, 18:03

Re: 2018-19 £21.4m loss

Post by whitedancer »

all over my head tbh,
we barely buy anyone,same team as last year,
sold pontus,roofe,jack Clarke, plus a few bits of deadwood,
full house every week, still run at a lost :thumbdown:
so how do other clubs manage, i have no idea. :(
User avatar
Another Northern Soul
LUFCTALK Moderator
Posts: 7537
Joined: 01 Nov 2015, 09:55

Re: 2018-19 £21.4m loss

Post by Another Northern Soul »

whitedancer wrote:all over my head tbh,
we barely buy anyone,same team as last year,
sold pontus,roofe,jack Clarke, plus a few bits of deadwood,
full house every week, still run at a lost :thumbdown:
so how do other clubs manage, i have no idea. :(
The accounts are for before those sales.
User avatar
PhoenixUnited
Dick Ray's Talent Spotter
Posts: 1743
Joined: 30 May 2018, 09:12

Re: 2018-19 £21.4m loss

Post by PhoenixUnited »

This is a sobering point of reference for those who hanker for the club going after the players that might cost between £10m and £20m and can't understand the club not wanting to "live the dream" :shifty:

Whilst Andrea Radrizzanni is keeping a tight grip, or at least having a damn good go at it, the level of investment needed cannot be met clubs owned by countries it seems and even some of those are not squeaky clean. We are just about managing to keep our heads above the water - that much is clear.

I think the current crisis will have a huge impact on how football carries on in the future on all levels and especially finance. Not all clubs are going to com out of this unscathed in any case

Personally, if we can carry on playing the kind of football we have played in the last two seasons I won't be disappointed although reaching the Promised Land would be nice! :D
Keep The Faith / WAL
Post Reply