Leeds United takeover: £9.5m losses show task facing Massimo Cellino
The Italian has said he hopes the Championship club will be challenging for a place in the Premier League in the next two years
Tuesday 08 April 2014
Massimo Cellino's task of transforming the fortunes of Leeds was brought into sharp focus on Tuesday when the club revealed losses of £9.5million for the 2012-13 financial year.
Cellino is hoping the Football League will ratify his takeover at a board meeting on Thursday after winning his appeal against its decision to block his takeover.
The 57-year-old Italian has inherited debts at Elland Road of more than £22m, the accounts confirm, and faces a huge task in reducing running costs and increasing turnover.
The Football League's Financial Fair Play (FFP) regulations allow a maximum loss of £8m this season and a January transfer embargo looms for clubs that fail to comply.
Under the terms of Cellino's deal to buy 75 per cent of the club's shares from previous owner Gulf Finance House Capital, those debts will increase to around £24m.
Since Bahrain-based investment bank GFH Capital bought Leeds from Ken Bates in December 2012, the club has made considerable losses.
Attendances have fallen by nearly eight per cent, gate receipts are down £2m and turnover has fallen from £31.8m to £28.5m.
The club's accounts for the previous financial year showed a profit of £317,000 with an operating loss of £3.3m.
The latest accounts show an operating loss of £11.6m, softened by incoming transfer fees of £2m.
It has also been revealed that club directors received £753,938 during the latest financial year, an increase from £312,200 in 2011-12.
"KW Bates did not receive any emoluments or benefits during the year," the accounts state. "The highest paid director was paid a salary of £265,449 and accrued a bonus of £440,000."
There was no such bonus during the previous financial year.
Latest in Sport
Australian Open 2015: Serena Williams vs Dominika Cibulkova match preview
Chelsea vs Liverpool match report: Branislav Ivanovic seals classic encounter with extra-time header to send Blues to Wembley
Chelsea transfer news and rumours: Juan Cuadrado battle; Douglas Costa wants move; Paul Pogba possible
Gabriel Paulista: Talented Brazilian could grow into world-class defender at Arsenal
Floyd Mayweather ends the carnival this week and picks his next fight - but will it be Amir Khan, Manny Pacquiao or Miguel Cotto
- 1 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 2 Does the path to true love really lie in these 36 questions?
- 4 Presidential optical illusion offers clues to how brain processes faces
- 5 Roald Dahl letter warning student to 'eschew beastly adjectives' rediscovered after 35 years
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Louise Mensch says 'F**K YOU' in explosive tweets about David Cameron, Saudi Embassy and the Queen over King Abdullah tributes