Leeds United were granted an initial rent-free period of 33 months on Elland Road after Andrea Radrizzani bought the stadium, the club’s latest accounts show.
United’s figures for the 2017-18 year have shed light on the agreement reached when Radrizzani completed a £20m deal to purchase Elland Road from its long-time private landlord in June 2017.
The Italian, who had taken 100 per cent control of Leeds from Massimo Cellino a month earlier, secured the deeds to Elland Road from Teak Commercial Limited, an off-shore firm which was charging the club an annual rent of around £1.7m
The ground was originally sold by United to Manchester property developer Jacob Adler to counter rising debts in November 2004.
Ownership of Elland Road was later transferred to Teak, although Adler was still believed to be the stadium’s ultimate landlord.
Radrizanni used one of his companies, Greenfield Investment Pte Ltd - the same firm which acts as United’s parent company - to reclaim the ground from Teak.
Today’s accounts show that United’s majority shareholder is now leasing Elland Road to the club until June 2032 but charging no rent at this stage.
The terms of Adler’s acquisition in 2004 saw rent increase by three per cent each year and United were paying close to £2m annually by the time Radrizzani activated a buy-back clause in the contract.
United’s accounts read: “The company (Leeds United) entered into a lease agreement for the stadium until June 2032 with an entity which has control over the stadium. There was an initial rent-free period of 33 months.”
The timeframe means that Leeds will continue to use Elland Road without landlord costs until at least 2020.