No more sales necessary - Ridsdale

Leeds boss Terry Venables will not be under orders to trim the first-team squad when the transfer window reopens in January despite the club today revealing record losses.

The combined £37m recouped from the recent sales of Rio Ferdinand and Robbie Keane have offset last year’s staggering pre-tax deficit of £33.9m, the worst figures to be revealed by any English club.

It meant as of June 30, Leeds were in the red to the tune of £77.9m, almost doubling the debt compared to the previous year when the figure stood at £39.4m.

But with Ferdinand’s £30m departure to rivals Manchester United and Keane’s £7m transfer to Tottenham, the bleak financial picture is not so black, while there is less pressure on Venables to implement further cutbacks.

“These figures reflect three elements, the first of which is loss from normal operations, which as you can see is around £7.9m,” said chairman Peter Ridsdale.

“They are then inflated by a massive amortisation charge because we’ve spent so much on enhancing the playing squad, and of course then there is interest.

“We set ourselves targets via a cash injection and we have exceeded those targets, post these numbers, by selling Rio Ferdinand and Robbie Keane.

“There is therefore no further requirement to reduce those players Terry Venables sees as part of his ongoing first-team plans.”

However, fringe players will be allowed to leave to ease the club’s wage bill which rose from 50% of turnover in 2001 to 66% for the last financial year, a ratio deemed as “too high” and which needs to be reduced to a “more manageable level”.

It was Leeds’ failure to qualify for the Champions League for the second successive year, plus their disappointing second half to the 2001-02 season, which has ultimately cost them dear.

Television income fell by 7%, with turnover tumbling by nearly £5million to £81.5million, while overall gate receipts fell by 18%, a result of less successful cup campaigns.

This was partly offset by record revenues in season ticket sales, merchandising, sponsorship and executive hospitality.

Overall, the club’s annual pre-tax loss was up to £33.9m from £7.6m, while the pre-tax loss before interest was £28.2m, up from a loss of £4m.

Ridsdale was keen to place the results in context as he added: “We remain convinced that our long-term strategy is not only right, but is the only sustainable strategy to deliver long-term shareholder value.

“Furthermore, the combination of the actions taken since the year end and ongoing actions surrounding the playing squad will help to ensure that we deliver against this strategy.”

Part of the strategy includes Leeds moving away from Elland Road to attract the commercial revenue which will ultimately help to further reduce their debts.