Leeds United accounts under investigation over suspected conflict of interest

Leeds United cannot seem to catch a break lately, and now the beloved football club is under investigation to determine if there is a conflict of interest over the auditing of their 2013-14 financial accounts.

Accountants Gibson Booth, whom Richard Umbers, brother of Leeds chairman Andrew Umbers, is a partner, audited the club’s accounts for that financial year, and signed off on the figures that were published online earlier this week.

Due to this family link, the Institute of Chartered Accountants in England and Wales (ICAEW) felt it was necessary to conduct an investigation, the Yorkshire Evening News reports.

The accounts show that the Championship football club lost £22.8m in the 12 months leading up to June 30, 2014, which meant they were handed a transfer embargo in January, after failing the Football League’s Financial Fair Play.

This is just the latest blow to Leeds’ tumultuous season, and comes just after it wa revealed the club’s kit supplier Macron is claiming that £2.15m is “allegedly owed” to them, as well as damages of between £2.5m and £3.5m.

In a statement, a spokesperson for ICAEW said: “We have strict rules to address issues with regards to auditor independence, of which family ties are a part.

“We’ve only just been made aware of this situation but we will be investigating it.”

Andrew Umbers, who became club chairman after owner Massimo Cellino was disqualified by the Football League in January, also commented: “Alistair Russell, senior auditor and partner of Gibson Booth, checked with The Institute of Chartered Accountants of England and Wales before Andrew Umbers was appointed as a director and gave approval to Gibson Booth that there was no conflict in them remaining auditors of Leeds United with Andrew as director.”

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