Leeds United will smash club records and pocket about £9 million as a result of some good news that will please the West Yorkshire club’s owners.
Red Bull, the massive Austrian energy drink company, probably thought they were investing in a Premier League team rather than a Championship one during the negotiations that preceded their purchase of a minority ownership in Leeds.
Leeds is still in a rather good financial situation, despite the club’s subsequent inability to return to the top division on its first try.
Although they do have a substantial transfer debt, there has been too much speculation about their possible infraction of the Financial Fair Play regulations of the EFL.
Now, Daniel Farke’s team is getting ready for another run at the Championship thanks to support from Red Bull and the San Francisco 49ers’ investment division.
In comparison to other Championship clubs, at least, the Elland Road club is expected to have a profitable season as a result of the most recent events at EFL HQ.
Leeds will benefit greatly from a new EFL TV contract that was secured this week.
It was announced earlier this year that Sky Sports and the EFL had signed a new £895 million television agreement.
The new deal, which will see Sky air another 1,000 matches from 2024-25, was met with a mixed reception.
On the one hand, the extra cash will be welcomed in a league system where almost every club loses money.
On the other, the provisions of the agreement means that Leeds fans and others will have to become accustomed to non-traditional kick-off times and more media duties.
In another new update, the EFL have revealed that they have also signed a new broadcast deal with CBS Sports to air the competition, as well as the Carabao Cup, in the United States.
No value for the deal has yet been given, but the trend in EFL rights means it is likely to represent an upswing on the previous deal.
Leeds earned just over £9m in broadcast cash in their last season in the Championship, and the new tranche of TV deals means they will smash that record again in 2024-25.
And with Leeds almost certain to be the most broadcast team in the division next season, they will also likely break the record for the highest amount of TV cash earned by a second-tier club in single season.
TBR Analysis: How do Leeds finances compare to the rest of the Championship?
Leeds’ commercial income was £48m in 2022-23, the last full season for which financial data is available.
That figure will have fallen in 2023-24 after their relegation, but it will still remain significantly strong than every other Championship side.
Their merchandise sales are among the strongest in Europe and will remain so whatever league they are thanks to their huge fanbase.
Their purchase of Elland Road back from previous owner Andrea Radrizzani signifies that they are still keen to expand the stadium, which will be another significant revenue driver.
The financial realities of modern football mean it is hard to imagine Leeds staying in the second tier for too long – and certainly not as long as their last stint outside the Premier League.
It is telling that Leeds continue to oppose an independent regulator for English football despite that body being likely to enforce an increased flow of cash from the Premier League to the EFL.
