Leeds to sell players after posting £34m loss

Leeds United, the publicly quoted football club, announced record full-year losses of £34m yesterday and said it planned to sell more players in order to reduce its wage bill.

The chairman, Peter Ridsdale, said: "We would expect that income from player sales would exceed that spent on new players when the transfer window opens in January and again next summer."

Leeds has already sold Rio Ferdinand to Manchester United and Robbie Keane to Tottenham Hotspur for a combined total of £37m. But these took place after the year end when net debt stood at £78m.

The Premiership club, which recently appointed Terry Venables to replace David O'Leary as coach, said it planned to focus more on home-grown talent rather than buying players in. "Over the last 18 months or so the balance of home-developed versus purchased players has got out of line," the club said.

The first team squad of 30 is expected to be trimmed to 24 by releasing players who do not command even a place on the substitutes bench. Leeds said it had to buy players last year to cover long-term injuries and the possible unavailability of Lee Bowyer and Jonathan Woodgate after their court case.

Leeds is one of the clubs that has been hit hard by its failure to qualify for the Champions League with its lucrative television and broadcasting income.

Turnover for the year to 30 June was down to £81.5m to £86.3m, with broadcasting revenue down 7 per cent. The wage bill to turnover ratio has increased sharply from 50-60 per cent, with wages up 24 per cent to £53.6m. Leeds expects to reduce its wage bill with annualised savings of £1m a year being sought.