Andymac-47 wrote:Doesn't look like PJ, is going anywhere!
That's not a real quote from Jansson.
Spend ‘his’ money???
There is no fucking money!!!
Selling Roofe means we lose £17m not £20m per year.
I know there is a left leaning bias on here and some are communist but there is no magic money tree!
Phil LUFC wrote:Let's get one thing straight, the £20m is a long way from fact right now. The last accounts published showed a moderate loss, the next accounts are expected to show a big increase in costs due to Bielsa and his team + more expensive players as we tried to step it up a notch. I've seen estimates ranging from 10-20m but it's also been acknowledged that the sale of Vieira will help offset this. It's also likely there will be at least one sizeable sale this summer.
We won't know the exact numbers for 18/19 until very late next season.
No-one wants regular £20m losses, it's not sustainable. But it's also a fact that very few teams in this league make a profit, those who do generally don't challenge (or are only profitable due to parachute payments). 1 or even 2 seasons losing a combined £30m while having a go is now the accepted norm under FFP I think. Have a go, have a 2nd attempt, maybe a 3rd at an absolute push then it's 2 really shit years with a cheaper squad buying the wiggle room to do it all again.
The £20m operating loss for the season just ended was mentioned by Phil Hay in YEP. So no, not fact but a good source.
The official loss last year included a cash injection from shareholders of more than £10m ..cash. I.e. without it the official loss was £14m+
My point to anyone is that, if we sell players we don’t have that cash to spend without putting the club further in debt.
Interestingly, for the period of the last set of accounts, when a £20m operating loss was reduced to £4.3m by selling Chris Wood, the overall debt was reduced:
Debt levels surprisingly fell, falling from £24.6m to £19.9m (19%) as Radrizzani repaid debts owed to their old owners of around £11m and replaced these with shares of £11.0m, meaning that Leeds now owe their owners less money.
On a separate note, Leeds disclosed they are seeking legal advice on the recoverability of a £2.0m debtor, it was not disclosed what this amount relates to, but they will be hoping to recover this amount.
Net debt hence dropped from £20.6m to £17.0m (17%). There is no doubt this amount is likely to increase as Radrizzani begins pumping more money into the club.
Radrizzani declared his hand from the start: he'll try to run the club as sustainably as possible, and spend up to five seasons underwriting reasonable losses in an attempt to win promotion to the Premier League. It might not buy us Dwight Gayle, but it isn't running up anything more than mid-table losses:
And it has made us competitive in a league that is grotesquely lopsided due to parachute payments and the more generous FFP terms allowed to relegated clubs.
Debt-to-owner is probably the only viable way of keeping a non-parachute club afloat in the Championship. Losing £20m a season is pretty much the going rate for just existing in the Championship, but the reasons for that go beyond any individual club: it's structurally fucked.
I've no doubt that if we don't go up and Radrizzani decides to sell, repayment terms will be a factor in a takeover. But the time to really worry is if we're loaning at weird rates from third parties.
As it is, although it might not have got him in the end, the club were offering Swansea around £5m cash for Daniel James in January, on top of however many millions signing Casilla committed us to. That suggested to me that, while we're being run tight — as Radrizzani has said at this Business in Football summit this week — there's money available when Leeds identify players they want.
In terms of budget for next season, we can look straight away at the outlay on Blackman, Baker and Brown. They barely played and we finished 3rd. We're starting again with those loan fees and wages, plus Harrison's, back in the bank — an annual budget to loan four highly-rated players from Premier League clubs (and yes, I know how they turned out, but rewind a year). Add the £5m we didn't spend on James.
At this stage, we need to literally replace Harrison and Saiz as lost from last season's squad (Blackman, Baker and Brown basically don't count because they didn't play). Opinions vary, and while if you can get better you should always get better, I think we need
to upgrade on Hernandez (old) and Bamford (doesn't score). Then it's a question of squad depth, and to what extent players like Shackleton, Clarke, Edmondson, Halme, Struijk etc are ready to be senior squad members — we trained them up for a reason, after all — and where we need to buy/loan.
(Edit to add: yes, we may well have to find a replacement if we sell another player to reduce the annual loss. As above, this is the cost of being in the Championship. How we replace them and how much they cost will depend very much on who it is, if anyone. Radrizzani's comments about a 'tight summer' may mean he's going to bite the loss and not sell this year? That might be a generous interpretation. We have to wait and see.)
I think we can afford those changes and have a very good team without a magic communist money tree or whatever the fuck, without sacking Bielsa to save money, and without ending up like Bolton in twelve month's time.
Yeboah wrote:One obvious benefit is that if the club had gone up then it was already sold to the 49ers.
In every interview Radrizzani has given on the subject since he arrived, some of them in the last few weeks, he has reiterated that if we get promoted to the Premier League while he is majority owner he wants to stay majority owner for many, many years. Have you heard something different?
Yeboah wrote:It’s also why ‘being happy playing ticki tacka’ is just fucking mental. It can’t happen.
I don't think I saw any tiki-taka football last season, that's not how Bielsa's teams play. But I did see Leeds win more games than in any season since 2009/10, which suggests to me that Bielsa's football does win games in this league.
As win percentages, Norwich's was 58.7%, Sheffield United's was 56.5%. They won one more game than we did.
Our win percentage was 54.3%, our best for a league season since 1999/00 (55.3%).