Leeds United post losses led by sackings and higher wages but Whites not thought to be in danger of financial fair play punishment

But it is not thought the Whites are in danger of breaking the financial fair play rules which have become such an unwanted factor this season and most probably next as well.

A big jump in "administrative costs" wiped out the impact of selling Kalvin Phillips and Raphina, whilst a rising wage bill and nearly £10m spent sacking managers accounted for the loss in 2022-23.

It was Leeds' third season in the Premier League, the world's most lucrative domestic football league, and ended in relegation, which despite generous parachute payments will bring its own set of financial challenges this season when the accounts are published.

Of the £190m they owe in transfer instalments, £73.6m is due by the end of June. Paying transfer fees in instalments is common in football, but it shows the difficulties of budgeting to remain competitive when teams are relegated.

Last season's turnover reached the record level of £189.6m but operating losses were £105m, a huge jump from £34m in 2021-22.

They did, though, sell Phillips to Manchester City and Raphinha to Barcelona, funding a rebuild which saw the wage bill go up 20 per cent to £145m.

The accounts also show £9.5m was spent on severing contracts with two head coaches – Jesse March and Javi Gracia – sacked, along with backroom staff and director of football Victor Orta also leaving the club as a result of a terrible season on the field.

Gate receipts rose nearly six time to £29m in the first season of unrestricted attendances since the Covid-19 outbreak, but broadcast income fell to £17.4m and merchandise income and central distributions were also slightly down.

Sign up to our new Sports Editor’s TeamTalk newsletter

Owner Andrea Radrizzani sold his stake in the club to then-minority shareholders 49ers Enterprises last summer, so these were the last accounts on the Italian's watch.

Leeds are due to receive a parachute payment of around £55m this season to partly offset the huge fall in income which will come with dropping into the Championship.

With Robin Koch, Max Wober, Brendan Aaronson, Jack Harrison, Luis Sinisterra, Rasmus Kristensen and Marc Roca exploiting relegation release clauses to leave on loan in the summer, respected website Transfermarkt calculates that Leeds have made a £2.1m profit on transfers this season. Their figures are based on the up-front costs and in most cases are highly-educate estimates.

Bournemouth are said to have negotiated a £20m deal to make Sinisterra's loan permanent.

Leeds are currently a point outside the Championship's automatic promotion places, a point behind the top two but having played a game fewer than leaders Leicester City. If they were to miss automatic promotion, a further spot is available through the play-offs.

Under financial fair play rules, Premier League clubs are allowed to lose up to £105m over a three-year period, with certain costs exempted from the figure and allowances made for the pandemic. Leeds lost £36m in 2021-22 but posted a £26m profit in their first season back in the Premier League.

Championship losses are restricted to £39m over any three-year period.

Everton (eight) and Nottingham Forest (four) have been deducted points for overspending under the Premier League's profit and sustainability rules and it is widely expected that Leicester will be punished next season, whether they are in the Premier or Football League. Chelsea are also widely expected to be in breach when the figures are assessed next season.

Relegation-threatened Everton and Forest have accepted guilt but are appealing their punishments.