Leeds United on course for £39.4m PSR boost as paperwork filed

Leeds United’s profitable long-term strategy will raise their

PSR standing by £39.4 million annually.

Leeds is financially sound even though they won’t be promoted to

the Premier League in 2023–2024.

Red Bull’s purchase of a minority share in the West Yorkshire

club is arguably the best testament to their appeal on a worldwide scale

and their financial standing.
This summer’s concerns about the club’s sustainability and profit margin

were overblown, and in terms of commercial revenue,

they remain among the best in Europe.

And in light of Leeds’ most recent official report, the team is now poised

to surpass the club income record of £189.7 million that it achieved

in 2022–2023 at some point.
Expansion of Leeds Stadium to produce PSR headroom

Leeds announced earlier this week that they had given the

club back ownership of Elland Road in an official statement.

The investment entity Aser Ventures, owned by former owner Andrea Radrizzani,

held ownership of Leeds’ home stadium until recently.

It is estimated that Leeds’ co-owners, Red Bull, a new minority partner,

and the investment arm of the San Francisco 49ers paid more

than £26 million to repurchase the 37,890-seat stadium.

Notably, this will enable the club to move forward with its ambitions

to extend Elland Road to accommodate more than 50,000 people.

Although the timing and cost of potential stadium improvements are unknown,

they would provide the team with headroom as infrastructure

expenditures are not subject to PSR.

TBR Analysis: Elland Road can bring Leeds how much money?

In 2022–2023, Leeds brought in £29.9 million from the turnstiles—the most recent

fiscal year for which complete data is available.

That was a record for the team, and once they were demoted to

the Championship at the end of that season, that number probably dropped a little.

Nevertheless, a rough pro-rata computation suggests that if Elland Road’s capacity

were increased to 50,000 by adding 12,110 seats, their matchday revenue would come

to £39.4 million.

In actuality, Leeds would probably make more money on matchdays than that as,

in the event of a refurbishment, more expensive matchday tickets as opposed to

season tickets would probably be available.

Like almost any modern stadium expansion project, there would undoubtedly

be increased spending on hospitality amenities as well.

Hospitality brings in just as much money for teams like

Bayern Munich as the rest of the stadium.

Even while Leeds isn’t able to generate those kinds of numbers,

putting more of an emphasis on hospitality would make the city far more profitable.

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