Leeds United have expressed concerns that the proposed independent football regulator could have a detrimental effect on their finances. This comes as the Whites filed their annual accounts, which showed an operating loss of £34.4m. Meanwhile, Chelsea also filed their accounts, which revealed a £114m loss for 2021-22. Leeds’ turnover increased from £171m to £189m, largely due to an increase in ticketing revenues from £1.9m to £24.6m following the return of fans to stadiums after the Covid pandemic. They spent £86m on new players, while the dismissal of manager Marcelo Bielsa cost £3.5m.
In their strategic report, Leeds said that the primary risk to their finances was relegation from the Premier League, but also listed the independent regulator as a potential risk, predicting it could “materially impact both the club’s finances and elements of the way it currently operates”. Chelsea did not describe the regulator as a risk, instead saying they were “looking forward to working with the government and relevant football governing bodies” as elements of the fan-led review are discussed and implemented. The Premier League has been wary of a regulatory body since the proposals were announced in April last year, saying it is “vital” that it does not lead to any “unintended consequences” that could affect its global appeal and success.
Chelsea’s losses would have been larger had they not raised £142m from player sales, including Tammy Abraham to Roma, Fikayo Tomori to AC Milan and Kurt Zouma to West Ham. They also operated under a special licence from the government for three months from March to May due to previous owner Roman Abramovich being sanctioned over alleged links to Russian President Vladimir Putin. This licence restricted what the club could earn from ticketing and merchandise sales, as well as player trading and the issuing of new contracts.
In May, a consortium led by American investor Todd Boehly and private equity firm Clearlake Capital completed a £4.25bn takeover of the club. Chelsea paid £49.75m to former directors Bruce Buck and Marina Granovskaia for “services related to the sale” of the club to Boehly. The accounts do not include the £550m spent on new players under Boehly’s ownership in the summer 2022 and January 2023 transfer windows.
Leeds United have expressed concerns that the proposed independent football regulator could have a negative impact on their finances. This comes after both Leeds and Chelsea filed their annual accounts, with Leeds showing an operating loss of £34.4m and Chelsea reporting a £114m loss for 2021-22. Leeds’ turnover increased from £171m to £189m due to an increase in ticketing revenues following the return of fans to stadiums after the Covid pandemic. They spent £86m on new players, while the dismissal of manager Marcelo Bielsa cost £3.5m.
The main purpose of the independent regulator is to block clubs from joining breakaway leagues that are judged to harm the domestic game, prevent clubs from going out of business, give fans greater input and introduce a new owners’ and directors’ test. Leeds said that it could “materially impact both the club’s finances and elements of the way it currently operates”. The Premier League has been wary of a regulatory body since the proposals were announced in April last year, saying it is “vital” that it does not lead to any “unintended consequences” that could affect its global appeal and success.
Chelsea raised £142m from player sales, while they operated under a special licence from the government for three months due to previous owner Roman Abramovich being sanctioned over alleged links to Russian President Vladimir Putin. This licence restricted what the club could earn from ticketing and merchandise sales, as well as player trading and the issuing of new contracts. In May, a consortium led by American investor Todd Boehly and private equity firm Clearlake Capital completed a £4.25bn takeover of the club, with Chelsea paying £49.75m to former directors Bruce Buck and Marina Granovskaia for “services related to the sale”. The accounts do not include the £550m spent on new players under Boehly’s ownership in the summer 2022 and January 2023 transfer windows.