By Wayne Veysey

25th Mar, 2017 | 3:26pm

Terms agreed: Leeds ready to complete £5m deal in May

By Alex Stevens

Leeds are facing a bill of nearly £5million if they secure promotion to the Premier League in May.

Figures released in the club’s annual accounts on Friday show that the Championship club must pay a sum of £4.75million to creditors who lost money during Leeds’ insolvency in 2007.

That 10-year clause was negotiated at the time of Leeds’ administration but the deal will expire if they remain in the Championship for another 12 months.

The financial results for the year ended June 2016 is that the Championship promotion hopefuls made a loss of £8.9million despite turnover increasing £6.1million to £30.1million.

Leeds chiefs are bullishly optimistic of turning a profit this season, which has been aided by increased commercial revenue and an average attendance of over 27,000.

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But note 28 to the financial statement explained the losses the club will incur if they can secure a money-spinning return to the Premier League after 13 years in the lower leagues.

“In the event of the club becoming a member of the Premier League before the 2017-18 season, then a liability of £4.75million will become payable to the liquidator to Leeds United under the provision of the sale agreement entered into on 4 May 2007,” reads the contingencies item in the accounts.

This payment is dependent upon the club finishing in the top three this season.

A place in the top two secures automatic promotion, with the next four best positioned sides then placed in the end-of-season play-offs in late May.

Leeds are currently fourth in the Championship with a tally of 69 points from 38 matches, eight points adrift of second-placed Brighton.

Despite these bonus costs facing Leeds, promotion to the Premier League is eyewateringly valuable for all promoted clubs following the £8.3billion broadcasting deal that came into effect at the start of this season.

The bottom club in the Premier League is entitled to a minimum of £100.5million in TV revenue and, bumped up by parachute payments and increases in sponsorship deals, kit deals and match day revenue, a season in the top flight is worth a staggering £189.7million in total.

In other Leeds transfer news, the club have sealed an out-of-window midfielder transfer.

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