A recovery specialist at Grant Thornton has warned that the financial crisis at Leeds United Football Club is 'perilous' and that the club needs to look at immediate debt restructuring to halt its decline in fortunes.
Link: Birch takes charge as Leeds post £50m loss
Following the club’s announcement of a £50m pre-tax loss, Joe McLean, partner at Grant Thornton’s recovery and reorganisation division, said restructuring for the club was likely to take years rather than months.
‘The dire financial situation in which the club currently lies has taken some years to develop as a result of poor on and off the field decisions. It is simply na‹ve to think that this can be redressed, in the absence of some Russian billionaire, without a restructuring period which will take some years to complete,’ said McLean.
McLean said that the club must look to reduce its wage bill without resorting to a massive player sale. He said the club must look to sell some players on ‘unaffordable’ contracts and to replace them with ‘Bosman transfers’.
‘Essentially it is a case of operating extremely skilfully in the transfer market,’ he said.
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