Leeds' debt could be reduced from £121million to as little as £4million within a year, according to manager Kevin Blackwell.
Relegation to the Championship and the eventual loss of parachute payments has led to the club selling their top players, even though some remained on the payroll while continuing their career elsewhere.
Since dropping out of the top flight, Leeds have had to restructure financially and, under new chairman Ken Bates, appear to have come through the worst of their difficulties.
Blackwell said: 'It is only 18 months since the club was relegated and in £121million worth of debt.
'We have had to deal with that millstone around our necks and still try to win games - and despite having lost so many players.
'But this time next year the club will not be in any debt whatsoever.'