In the 2000/01 season, Leeds entered the Champions League semi-final round. Their turnover in 2000 was £ 83 million, minus all expenses and debt payments, they earned £ 10 million. That revenue came from a 33% increase in admission ticket sales, and 40% in brand name sales. Gambling looks good and bright.
However, losing to Valencia in the semifinal ended all hope. The revenue dropped immediately. Meanwhile, the cost is too high. Leeds spent sporadically as if such a waste showed it deserved to be on the same tray as the big guys in Europe.
It was a Leeds player that told that day, just about the plane traveling to the Champions League, Leeds also played brand names. While Liverpool itself, at the 2005 championship, only flew with a Boeing 737 with so narrow space that the trophy had to sit in one seat like a regular passenger.
After that failure is the situation that was charged with debt. Leeds owed a total of £ 83 million, paying one million pounds a month in debt. Salary funds were still suffocating, and they began to cut it down by selling their stars. The more you sell the weaker. The weaker the more broken.
And one day in the early summer of 2004, they were relegated to start the tragedy. They were controlled, penalized, sent to 3rd place. From a rich traditional team, winning England three times, they became number 0.
President Peter Ridsdale’s mistake in building overly naive business that day is still a great reference today. Simply the story of the social gap due to the Covid-19 translation, causing the pitch to have no audience, has caused many clubs to struggle.
A club cannot rely solely on commercial revenue. At this point, people can see the value of television rights, investment owners hiding under the name of a sports company, or some football investment fund.
Coincidentally, at the very moment of the Covid-19 pandemic that could turn some clubs into Leeds’ situation nearly 20 years ago, Leeds returned to the Premier League, with the sole investor owner, Italian billionaire Andrea Radrizzani. After three years of buying a 100% stake in Leeds, he brought the club back to where it belongs.