Post by WyomingWhite on May 24, 2006 13:00:05 GMT -1
It's not all bad news. Someone in another thread was bemoaning the fact that Leeds were still paying form several ex players, but it looks like there's light at the end of the tunnel with regard to this now.
If, as expected we can move Eirik Bakke on (whether for free or a nominal fee) we will save another $1.25m too on his wages alone.
Leeds should be better off next season despite failing to win promotion to the Premiership and losing their £6million 'parachute payment' - because they will finally have finished paying off former players such as Robbie Fowler and Robbie Keane.
The club have been paying off contracts to eight players who signed deals when Leeds were flying high in the Premiership and most of those come to an end next month.
Leeds' turnover in the year ending 2005 was £31million and though that will drop due to the ending of the parachute payment - which only lasts for two years after relegation from the top flight - the wage bill is expected to fall from £17million to less than £10million.
Dr Bill Gerrard, a football finance expert at Leeds University business school, said the club's financial position had now been stabilised by chairman Ken Bates after a cash injection of £9.2million from the Geneva-based Fortress Sports Fund in September.
Gerrard said: "Ken Bates has said he budgeted for Leeds finished mid-table so the implications of losing the play-off to Watford are not so serious financially.
"The issues will now be more on the pitch than on the balance sheet.
"Those players and payments still hanging over from the Peter Ridsdale era will no longer be such a burden on Leeds."
Current players such as Gary Kelly and Eirik Bakke still have a year left on lucrative contracts worth an estimated £1.25million each, but the payments to Fowler, Keane, Michael "Peanut Head" Duberry and several others will finish at the end of June.
Leeds' wage bill should then be brought down to well below £10million - still high though in comparison to Watford's £3.5million annual wage total.
If, as expected we can move Eirik Bakke on (whether for free or a nominal fee) we will save another $1.25m too on his wages alone.
Leeds should be better off next season despite failing to win promotion to the Premiership and losing their £6million 'parachute payment' - because they will finally have finished paying off former players such as Robbie Fowler and Robbie Keane.
The club have been paying off contracts to eight players who signed deals when Leeds were flying high in the Premiership and most of those come to an end next month.
Leeds' turnover in the year ending 2005 was £31million and though that will drop due to the ending of the parachute payment - which only lasts for two years after relegation from the top flight - the wage bill is expected to fall from £17million to less than £10million.
Dr Bill Gerrard, a football finance expert at Leeds University business school, said the club's financial position had now been stabilised by chairman Ken Bates after a cash injection of £9.2million from the Geneva-based Fortress Sports Fund in September.
Gerrard said: "Ken Bates has said he budgeted for Leeds finished mid-table so the implications of losing the play-off to Watford are not so serious financially.
"The issues will now be more on the pitch than on the balance sheet.
"Those players and payments still hanging over from the Peter Ridsdale era will no longer be such a burden on Leeds."
Current players such as Gary Kelly and Eirik Bakke still have a year left on lucrative contracts worth an estimated £1.25million each, but the payments to Fowler, Keane, Michael "Peanut Head" Duberry and several others will finish at the end of June.
Leeds' wage bill should then be brought down to well below £10million - still high though in comparison to Watford's £3.5million annual wage total.
- your influence ..... it was ok 
