Leeds reveal large losses

The challenge facing Massimo Cellino in turning around the fortunes of Leeds United has been thrown into sharp focus after the club revealed losses 9.5m for the 2012-13 financial year.

Cellino hopes to have his takeover ratified by the Football League at a board meeting on Thursday after winning his appeal against its decision to block his takeover, but the 57-year-old Italian has inherited debts at Elland Road of more than 22m and under the terms of his deal to buy 75% of the club's shares, those debts will increase to around 24m.

The Football League's Financial Fair Play (FFP) regulations allow a maximum loss of 8m this season, with a January transfer embargo for clubs that fail to comply.

Leeds' latest accounts show an operating loss of 11.6m, softened by incoming transfer fees of 2m.

Since Bahrain-based investment bank GFH Capital bought Leeds from Ken Bates in December 2012, the club has made considerable losses, with attendances falling by nearly eight per cent, gate receipts down 2m and turnover down from 31.8m to 28.5m.

The club's accounts for the previous financial year showed a profit of 317,000 with an operating loss of 3.3m.

It has also been revealed that club directors received 753,938 during the latest financial year, an increase from 312,200 in 2011-12.

"KW Bates did not receive any emoluments or benefits during the year," the accounts state. "The highest paid director was paid a salary of 265,449 and accrued a bonus of 440,000."