How Leeds United's financial picture looks as major player sale deadline looms and new £83m figure revealed

Leeds' failure to return to the Premier League via the Championship play-offs last season led to suggestions the club would be forced into a sale in order to abide by Profitability and Sustainability (P&S) regulations - or at the very least, improve the club's financial picture.

With less than seven days remaining until the 2024/25 season officially begins, on balance sheets that is, Leeds are yet to sell one of their high-value players.

While the club have agreed a deal to send Jack Harrison back to Goodison Park on a season-long loan and are on the verge of recouping an undisclosed fee, believed to be in the region of £5 million, for Marc Roca, a much-feared post-play-off fire-sale has not materialised.

Leeds' 2022/23 season accounts reflected a £33.7 million pre-tax loss as the team fell out of the Premier League, down from £36.7 million the year before, totalling £70.4 million. The three-year accounting period beginning July 1, 2021 and running until June 30, 2024 will permit Leeds to make a loss of £83 million over those three seasons, which leaves room for a £12.6 million loss in the unreleased 2023/24 accounts.

This is because clubs in the Premier League are permitted to make losses of up to £105 million over a three-year period, which works out at a rate of £35 million per year. However, if one of those three seasons is spent in the Championship, such as Leeds' 2023/24 campaign, the annual loss threshold falls to £13 million for that season, resulting in the £83 million figure listed above.

Going from a £33.7 million annual loss to £12.6 million within the space of a year, whilst no longer in receipt of Premier League broadcast revenue and centralised payments, may strike fear into supporters, but the sales of Luis Sinisterra and Tyler Adams - each transfer in the region of £20 million - will be reflected in the club's 2023/24 accounts.

Additionally, upon relegation from the top flight, mandatory wage reduction clauses kicked in, which saw players' salaries fall by a reported 40-60 per cent in some cases, significantly reducing the club's overall wage bill.

Included in Leeds' 2022/23 accounts was close to £10 million worth of pay-offs to former managers, coaches and staff no longer employed by the club. During the 2023/24 Championship campaign, no such exits were made, thus saving the club a hefty chunk of change.

Factor in Red Bull's recent investment and front-of-shirt sponsorship agreement, the latter of which could be reported in 2023/24 the accounting period given the timing of the announcement, and Leeds are most likely abiding by P&S regulations. Chairman Paraag Marathe has already stated this summer he hopes the club are skirting close to the line every season in order to be as competitive as possible.

Granted, a major player sale before June 30 would greatly aid the club from a financial reporting standpoint but the manner in which Leeds have conducted their business so far this summer suggests they are on sound enough footing for the time being.