The Whites are not expected to report a Profitability and Sustainability (PSR) breach in their latest accounts, which are due to be released over the coming weeks.
United made significant player sales throughout the 2023/24 accounting period which ended on June 30, 2024, including the departures of Tyler Adams and Luis Sinisterra, each for fees in the region of £20 million.
As is the norm with clubs dropping down from the Premier League, teams tend to report significant operating losses in their first year outside the top flight as sides acclimatise to a new normal where broadcast revenues are a fraction of what’s on offer a division above.
Here, the YEP reveals what can be expected from Leeds’ soon-to-be-released 2023/24 accounts.
1. First year of the 49ers
The 2023/24 set of accounts will be the first season with 49ers Enterprises as majority shareholders. This change of ownership is likely to be reflected in the financial accounting notes. | Pic: Jonathan Gawthorpe Photo: Pic: Jonathan Gawthorpe
2. Significant reduction in overall revenue
Relegation from the Premier League means Leeds' 23/24 accounts will not reflect receipt of centralised distribution payments or top flight broadcast income. | Getty Images
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3. Parachute payments
Year one of the Premier League's parachute payments scheme permits relegated clubs to receive 55 per cent of the centralised distribution payments they would have earned if they had remained in the top flight. This works out at around £52 million for the 2023/24 season. | Getty Images
4. Significant reduction in wage expenditure
Leeds' 2022/23 accounts reported the club's wage bill to be £145 million. This is expected to have fallen by around 40-60 per cent, due to mandatory relegation wage reduction clauses in player contracts, as well as several squad members going out on loan for the duration of 2023/24. The cost-saving on wages from the previous year is likely to be around £55 million. Photo: Naomi Baker
5. No expenditure on staff severance costs
Leeds' 22/23 accounts reported approximately £9 million was spent in compensating the likes of Victor Orta, Jesse Marsch and Javi Gracia following their Elland Road exits. No such expenditure was required during 2023/24. | Getty Images Photo: George Wood/Getty Images
6. No Georginio or Summerville
The sales of Georginio Rutter (£40m) and Crysencio Summerville (£25m) will not be reflected in the club's 2023/24 accounts because they were sold after the accounting deadline of June 30, 2024. | Adam Davy/PA Wire