Leeds money madness

Peter Ridsdale: frightening levels of spending

14 April 2012

The astonishing level of money madness at Leeds United was exposed today by new chairman Professor John McKenzie.

McKenzie, a professor of economics, outlined the "irresponsibility and indulgent spending" during Peter Ridsdale's five-year spell as chairman.

Luxuries, including £20-a-month on goldfish, have now been ended in a dramatic overhaul of the debt-ridden club. On the day McKenzie took over as chairman from Ridsdale seven weeks ago, Leeds announced debts of £78.9million despite selling nearly £50m worth of players.

Since then, McKenzie has uncovered frightening levels of financial extravagance by the previous regime. Their spending spree included:

£5.7m on compensation to former managers David O'Leary and Terry Venables
£600,000-a-year on a fleet of 76 company cars for 250 staff, including £70,000 on just one vehicle
£70,000 in one year on private jets for directors and senior management
£70,000 recruitment expenses on a senior management figure who departed the club in less than six months
£500,000-a-year for part of Robbie Fowler's wages - even though he has been sold to Manchester City
£300,000-a-year in charitable donations despite the club announcing losses of £33m in the last financial year.
£1m packages per annum paid to three former directors

They have now been found a new home as part of 65-year-old McKenzie's cost-cutting.

A spokesman for Leeds-based pet shop Paws For Thought confirmed it was not unusual for companies to agree leasing deals for goldfish. He said: "Customers often spend money to ensure tanks are cleaned and maintained on a regular basis." Other cutbacks have led to a number of redundancies being made, saving more than £5m annually, while this week assistant manager Eddie Gray and first-team coach Brian Kidd have also departed, slashing a further £1m off the company wage bill.

"There's been irresponsibility and indulgent spending," McKenzie said. "This is unacceptable at any time, but especially at a time when the club was losing vast amounts of money."

McKenzie concedes he is more optimistic now than when he first arrived in resolving the financial malaise which he has unearthed.

"It's like an oil tanker that was heading straight for the rocks and the shareholders have put someone else on board to turn it around," he added.

"The trouble with oil tankers is they're two miles long and they don't turn around in two minutes.

"But we will get back on a winning trail. I would ask the supporters to get behind us and be patient while we sort it out."

McKenzie also insisted the club "cannot allow" Harry Kewell to see out his contract and walk away from Elland Road for a cut-price fee.

The Australian striker is in the midst of contract talks with Leeds and McKenzie is desperate to secure Kewell's signature and avoid a situation similar to the one which saw Lee Bowyer stall on a contract only to leave for West Ham for £100,000 in January.

McKenzie said: "I have already spoken to Harry's agent a few times and we are still very confident of putting a deal together. We hope that Harry will stay.

"I will be looking to meet his agent again next week when I believe we will be in a position to put a new proposal to him.

"We all know what happened to Lee Bowyer and how he was able to walk away for almost nothing and we cannot allow that to happen again."

Meanwhile, Leeds look poised to accept a cut-price deal to allow midfielder Olivier Dacourt to sign for Roma.

When Dacourt joined Roma on loan in January, a £4.2m fee was agreed between the two clubs.

But cash-strapped Roma have since insisted on a renegotiation of the deal and a compromise fee of around £3.5m has now been finalised,

Roma sporting director Franco Baldini said: "We had an agreement with Leeds over the permanent transfer of Olivier Dacourt.

"The amount agreed is slightly lower than the amount previously requested by Leeds."

The move represents a £3.7m loss for Leeds who signed him from Lens in the summer of 2000 for a then club-record fee of £7.2m.

Fellow Leeds midfielder Paul Okon could be another player on his way out after finding himself surplus to requirements under new manager Peter Reid.

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