Good Morning. It's Tuesday 7th December, and here are the latest headlines from Elland Road 49ers 100% committed to Leeds takeover The San Francisco 49ers are set to assume full of Leeds Utd (and all its assets including Elland Road) after it was news of the takeover was leaked by 'The Athletic'. Whilst Andrea Radrizzani has done an amazing job stabilising the club, his limited financial situation makes it a difficult for Leeds to reach the next level, and that's where Denise DeBartolo York and her family step in. According to Forbes records earlier this year, the York family are worth more than four Billion Dollars, compared to Radrizzani's 450m net worth. The 49ers have until January 2024 to trigger the takeover, believed to be worth anywhere between 400m - 475m, a far cry from the 45m Radrizzani parted with in 2017 Phil Hay explains:- "First of all, that 49ers Enterprises is 100 per cent committed to taking charge of Leeds. Having bought a small, strategic stake at the outset (10%), the people behind 49ers Enterprises have had the chance to attend meetings, listen and learn and be across every item in the club’s accounts. They now know exactly how much it costs to get out of the Championship and what it costs to stay in the Premier League. In the face of those numbers, they haven’t flinched". "The jump to a 37 per cent shareholding in January of this year was a tell-tale sign a buy-out was on the cards. Industry sources will tell you that 10 per cent or thereabouts (the stake 49ers Enterprises bought initially) is something you can sit on. But once you hit the level of 44 per cent, as 49ers Enterprises did last month, the commitment is so big that it makes far more sense to push on and run a club yourself". "Nobody moves to 44 per cent without having a path to control. A small stake is fun — some skin in the game, but nothing to lose sleep over. A third? That’s serious, but you can still be outvoted. This has been a phased takeover for some time. And if Radrizzani seeks to retain a stake in Leeds, if and when 49ers Enterprises takes charge, it is likely to be small". "Leeds have a lot more going for them than most, though. Their commercial income in the Championship was just over £29 million — better than Aston Villa, Wolves and half a dozen Premier League sides that same season — but life moves fast. As mentioned, Newcastle have been bought by wealthy chaps from Saudi Arabia and a Czech billionaire is starting the same journey at West Ham that the 49ers began at Leeds in 2018. Leeds cannot stand still". "Owners of sports teams in the US are not simply expected to subsidise losses every season. American teams either make profits or get close enough for the tax breaks to be worth it. They are not holes in the ground that owners fill with cash every year". please log in to view this image Welsh International linked to ER January move Italian media reports are linking Leeds to former Gunners midfielder Aaron Ramsey. The Welsh International joined Juventus in 2019, making 70 appearances, and netting six times. Unfortunately Ramsey has slipped down the pecking order at the Allianz Stadium, but with eighteen months still left on his contract, Juve want him off their books. According to the media reports, Leeds are keen only on a loan deal, and would want to access the situation in the Summer. Newcastle and Everton have also been credited with interest in the 30yo. please log in to view this image Leeds ready to swoop for Brereton Leeds are believed to be carefully monitoring the situation at Ewood Park, and their want away star Ben Brereton. The 22yo Chile International forward has already netted 18 times this term, attracting a wide range of interest all around Europe. Although his four year contract expires next Summer, the Riversiders can excercise a clause in his contract, extending his stay for another twelve months. According to Blackburn Manager Tony Mowbray “If Brereton goes, the first question in my mind is how much of the money are we getting? Or are we not seeing any of it?” “He’s not walking away for nothing in the summer. How much do you pay Ben Brereton to keep him happy and stay at this club and keep the journey going? Or when does he cut off and say he’s not signing so you decide what you want to do? “I’d like to think we can give Ben a new contract because I believe the best way to leave the club would be if someone offers an amount of money that would just be stupid to turn down and we could buy three £5million players on the back of it and then give yourselves a real chance and expectation to get promotion.” please log in to view this image
Morning all. Quiet on here. I just hope that if the Yanks take over completely that they don't turn us into some kind of Amercanised entity and that they remember who the clubs supporters are and the History of the club and it's past sucesses.
Morning all Americans don’t get the English and the way we do things, how quickly we can turn and how we don’t like change. I was always against them increasing their stake and I’m not looking forward to the day they take total control. This move also screams out that it will be the last season for Bielsa, avoid the drop and I’m sure the 49ers will trigger the clause and Bielsa will leave as it just won’t be the same for him. Huge changes this summer, a few ups and downs, loads of talking points, we’ve had worse owners and I should feel grateful, I guess it’s not the owners with the bottomless pit to throw at it that I’d hoped for. I don’t believe the Ramsey rumours, zero to gain from signing a 30 year old with an injury proneness to match Forshaw. On another note, as we approach a transfer window how do you handle it if you don’t know the current coaches intentions? Do you sign Bielsa targets if he’s going to be gone in 5 months?
Morning all On the ownership be good if people remembered its not just 49ers money. The 49ers is owned by the York family and part of that group is the investment arm headed by Parag Maratha. So yes lots of 49ers cash but dont forget about the guy who co-founded YouTube Chad Hurley and all the cash behind him and what about the Australian Lowey family who is the 4th richest bloke in Oz. Peter Lowey is on our board of directors and he will be sorting out the stadium expansion because his family and he build Westfield shopping malls all over the world. Lowey or Hurley could each individually buy out the 49ers if the wanted. So lets not worry about the 49ers, we have some serious wealth behind us now
I would prefer Arabs like the Mansour family, I’m not getting any younger, if it’s watch us survive in the Premier league and flirt around the drop zone or have filthy rich owners putting us on par with the top 4 I’ll take the second option any day
Surely Radz will have to invest in January to help maintain our PL status, £15-£20m now would be a wise investment as the price of a PL club compared to a Championship one must be significantly different. With regard the sale, where does that leave Kinnear and Orta?
Think it was fairiy obvious from the off that Radrizani was always going to flip us once the chance arose. As it was imperative for us to become an establlished PL club for that to happen I've no problem with the 49ers taking over in due course and Radz getting his big slice of pie with a cherry on top. What the future will hold is unclear at present, but at least we continue to move further away from the catastrophic Bates era and it terms of wealth the 49ers would be the wealthiest in our history. Good reasons to feel optimistic I feel.
Morning all, I'm a big fan of Ramsey as a player but a loan deal doesn't sit right with me. If we were buying him on a sensible wage then snap their hand off but I don't see what we get from a loan, especially with Forshaw on fire.
Ramsey’s club need him off the wage bill and that alone means we would be stupid to bring him in. He is on an astronomical weekly wage. On top of that hes 30yo and on top of that he would have heart attack getting Bielsa ready. No….. not for Leeds
I’d be amazed if they didn’t keep them for the time being. The interesting time might arise when Radz takes on his next Football challenge and wants to keep a winning formula together. Kinnear was instrumental for West Ham moving to the Olympic stadium but prior to that he spent 10 years at Arsenal on the marketing side. How good he is behind the scenes at Leeds I have no idea, Radz had also worked with him before. Eventually the 49ers would have all their own people in I’m sure
Looks like I was right and The Athletic have assumed too much and this from Radz today bollocking Slater, and now we mention Hurley and Lowy and we now have the new model of ownership syndicate mentioned "For someone as good as you I expect more!" Radrizzani tweeted in response to The Athletic's latest article on the developments at Elland Road. "Aser has option to void the call (effect before 2024) but the main point is thay [sic] we are only focused on working together and growing Leeds United. "Anything can happen between now and 2 years time (when many may have forgotten the article!)" the Italian added. Radrizzani's claim that 'anything can happen' is one which is particularly vague, while the chairman has not refuted claims that he is looking to end his association with Leeds, suggesting there is some validity to the report of a possible sale within the next 24 months. 49ers' chief Paraag Marathe was installed as Leeds United's new Vice President earlier this year, while Australian business tycoon Peter Lowy was installed to the Board, now totalling six individuals. "The club might find itself moving from the chairman-owner model to what is increasingly the Premier League’s new norm: an ownership syndicate,"
Explained: 49ers Enterprises’ option to buy Leeds United please log in to view this image By Phil Hay and Matt Slater Dec 7, 2021 please log in to view this image 61 please log in to view this image Takeover stories at Leeds United have kept journalists busy for the past two decades. Perhaps because of the sense that Leeds were forever selling themselves short, external investment was always mooted. Ken Bates, the Lowy family, GFH Capital, Red Bull, Massimo Cellino: the list of takeovers that crossed the line, almost happened or never truly got off the ground goes on forever. As The Athletic revealed on Monday, another buy-out at Elland Road is very much on the cards. The minority shareholder at Leeds, 49ers Enterprises, has an option to buy the club in full before a deadline of January 2024, at a total cost of more than £400 million. It indicates a succession plan is in place for ownership to pass from majority shareholder Andrea Radrizzani. He has controlled Leeds since 2017 and oversaw the club’s promotion to the Premier League three years later. He brought 49 Enterprises to the table in 2018 and negotiated a rise in its shareholding to 44 per cent last month, but the option that exists between them would bring another top-flight English side under US control. Here, we examine the bigger picture… What does this option actually tell us? First of all, that 49ers Enterprises is 100 per cent committed to taking charge of Leeds. This is not exactly a bolt from the blue because the group has been increasing its stake in stages since 2018 and everyone at Elland Road expected more shares to pass to it. But the fact an agreement is in place with a specific date and price confirms the ambition of full ownership is far more than speculative. Having bought a small, strategic stake at the outset, the people behind 49ers Enterprises have had the chance to attend meetings, listen and learn and be across every item in the club’s accounts. They now know exactly how much it costs to get out of the Championship and what it costs to stay in the Premier League. In the face of those numbers, they haven’t flinched. The jump to a 37 per cent shareholding in January of this year was a tell-tale sign a buy-out was on the cards. Industry sources will tell you that 10 per cent or thereabouts (the stake 49ers Enterprises bought initially) is something you can sit on. But once you hit the level of 44 per cent, as 49ers Enterprises did last month, the commitment is so big that it makes far more sense to push on and run a club yourself. Nobody moves to 44 per cent without having a path to control. A small stake is fun — some skin in the game, but nothing to lose sleep over. A third? That’s serious, but you can still be outvoted. This has been a phased takeover for some time. And if Radrizzani seeks to retain a stake in Leeds, if and when 49ers Enterprises takes charge, it is likely to be small. please log in to view this image Radrizzani completed his takeover of Leeds in 2017 (Photo: Alex Dodd – CameraSport via Getty Images) It is significant, too, that the option held by 49ers Enterprises includes Elland Road. The stadium is technically under Leeds’ control but it is owned by Radrizzani via a company based in Singapore. At face value, the deal means 49ers Enterprises would get the whole package — stadium and all. Do Leeds need another takeover? And would 49ers Enterprises taking charge be a good move for the club in the long term? To maximise their potential, Leeds need substantial investment over a sustained period. There are clubs in the Premier League who try to operate a break-even model, but an approach like that tends to lead to little more than survival year on year — and although avoiding relegation was the only priority in their first two seasons back in the top flight, Leeds know their fanbase will expect a more ambitious approach as time goes on. Radrizzani has spoken openly about chasing European football, but building a squad good enough to qualify for the Europa League will mean spending in future transfer windows. Financially, Leeds are on a completely different planet to the Championship — and even in that league, Radrizzani was forced to put up more than £1 million a month (some of it in loans) to pay the wage bill. If Leeds are to become more competitive, expenditure will only increase. This poses the question of how long Radrizzani can provide sufficient funding and how long he wants to provide funding in partnership with 49ers Enterprises. An option deadline of January 2024 does not suggest he is looking for a rapid exit, and very few people expect 49ers Enterprises to activate the deal imminently, but sources have told The Athletic a takeover could well proceed earlier than that date. Takeovers can be scary, especially if what went before felt good. Leeds have made big strides on Radrizzani’s watch. But 49ers Enterprises president Paraag Marathe has been a Leeds director since May 2018, and another member of the investment group, Peter Lowy, joined the board this summer. It feels more like evolution than revolution. please log in to view this image Marathe, pictured in October, has been on the Leeds board since May 2018 (Photo: Michael Zagaris/San Francisco 49ers/Getty Images) How important is it that Elland Road is included in the deal? Elland Road, and to a lesser extent the club’s training ground at Thorp Arch, became problems for the club from the moment they were sold into private hands in 2004. The board that sanctioned those sales, led by Gerald Krasner, used the income to pay off loans when Leeds were in financial strife but they placed a burden on the club, creating expensive rents that increased by three per cent annually. Radrizzani activated a buy-back clause for Elland Road when he completed his takeover in 2017. The buy-back clause on Thorp Arch had long since expired by then and the property is still owned by Manchester businessman Jacob Adler. The deeds for the ground passed to Greenfield Investment Pte Ltd, a Radrizzani firm, but Leeds were immediately given a rent-free period of 33 months, saving them close to £6 million. That period ran to the end of the 2019-20 season and the club’s accounts have not yet detailed any changes or subsequent payments in rent. But a majority shareholder who owns a club’s stadium is in a much better place than the stadium belonging to an invisible landlord or an unconnected third party. The option held by 49ers Enterprises should avoid a scenario where Radrizzani relinquishes control of Leeds but retains ownership of Elland Road — and prevent any politics as a result. It would make little sense for 49ers Enterprises to want the club but not want control of the ground. Would this be markedly different to Radrizzani’s ownership model? This is a difficult question to answer. It’s common knowledge that 49ers Enterprises, while being the investment arm of the San Francisco 49ers, is not purely funded by the NFL franchise’s owners. The York family are involved with it, naturally, but when it came to the investment in Leeds, and particularly the investment that took 49ers Enterprises up to a 37 per cent stake in January, the funding was accrued from something more akin to a syndicate. Peter Lowy, the wealthy Australian businessman, is part of the group and now a Leeds director. Entrepreneurs Chad Hurley and Nick Swinmurn are others who have declared their involvement. What is not clear is whether a full buy-out of Leeds by 49ers Enterprises would be financed by a group of people in the same way or whether one individual will step forward. But, without question, the vehicle’s current set-up is different to Radrizzani who bought Leeds alone and outright in 2017. please log in to view this image Peter Lowy at the opening of a Westfield mall in California in 2017 (Photo: Rachel Murray/Getty Images for Westfield Century City) That does not mean the running of Leeds would change drastically overnight, though. Marathe and his investors have been around the table for a few years and Radrizzani has been making decisions with their input. However, the club might find itself moving from the chairman-owner model to what is increasingly the Premier League’s new norm: an ownership syndicate. There have been changes in the ownership structures at seven of the league’s 20 clubs in the past 12 months and all, bar one, have seen the ownership groups at those clubs get bigger. Mike Ashley has been replaced at Newcastle by a group led by Saudi Arabia’s Public Investment Fund, but that includes minority stakes for two British partners. Daniel Kretinsky has taken a significant stake at West Ham but he has not bought out any of the existing shareholders yet. American entrepreneur John Textor has done similar at Crystal Palace, while Wolves’ owners Fosun have sold a small stake to American venture capital firm PEAK6. And in March Liverpool’s owner, Fenway Sports Group, probably the league’s best example of syndicate ownership, added a certain LeBron James and his business partners to its already impressive list of Wall Street names. The exception to this trend is Burnley, but they swapped a British syndicate, the group of local businessmen who rescued them several years ago, for an American one in ALK Capital. The lesson here is Premier League clubs are getting too complicated and risky for any single individual or family to own. The Glazers sell chunks of Manchester United every time the share price hits $20. So, the whole ownership model is changing. The days when a club could be owned by a local Mr or Mrs Big — to “give something back”, fulfil a childhood dream or just show off — are nearly gone. And most of the new money is coming from the US. Why are so many Americans buying English football teams at the moment? Americans aren’t just buying English teams. They’ve been on a shopping spree across Europe, particularly in Italy. There are several reasons for this trolley dash. In an era of low interest rates, there’s an awful lot of money looking for somewhere to go. You cannot leave it under the bed, particularly now that inflation is ramping up. Also, owning a sports team is pretty cool. You get the best seats in the house and you can invite family, friends, business associates and politicians but sports teams in the US either cost a fortune or are just not for sale. The NFL is pretty much a closed shop and the NBA and Major League Baseball are too expensive. Even Major League Soccer is becoming a stretch. And why buy a new franchise in a league with a smaller TV deal than the EFL for 10 times what it earns in a year when you can buy a famous club, in the world’s most popular division, for two or three times its turnover? Some of you will already have your hands in the air shouting, “What about relegation?” And you’re right: that existential business threat explains why MLS teams and Leeds United cost broadly the same amount, but different folks have different tolerances for risk. This brings us to the final reason so many Americans like football, and European football at that. They have seen enough now to know that our football is the global game and attracts eyeballs — and therefore broadcasters and sponsors — in places the NFL, MLB, NHL and even the NBA can only dream of reaching. The trick is to monetise those fanbases so owners actually make money and unlock profits in the future. If and when this takeover goes through, is it likely that Radrizzani will remain involved in any capacity? Radrizzani could continue to have some involvement at Leeds, even if that meant no more than retaining a small shareholding. Keeping a low-level stake would make sense. If the Americans take over as expected, Leeds’ value will have grown by more than 10 fold in half a decade. What’s not to like about that? Equally, the cash he earns might give him the chance to head off and buy another club. He has spoken more than once about trying to create a network of teams and he has been linked with several sides in Italy, including Genoa and Sampdoria. But unless you have bills to pay or need all of the money for another venture, Plan A would surely be to keep a piece of Leeds — and a foothold in the Premier League — while strapping in for another rollercoaster ride elsewhere. The Athletic reported on Monday that the deal between Radrizzani and 49ers Enterprises would become void if he chose to purchase a different club while still retaining control at Elland Road — but given how much cash 49ers Enterprises would be paying for Leeds, it would be a surprise if he sought to pull the plug in that way. What does this tell us about the Premier League? It is natural to wonder if Radrizzani’s wallet has taken Leeds as far as it can. Why else did he start selling stakes in 2018? The Italian is a self-made man but he’s a millionaire in a land of billionaires, oligarchs and sovereign wealth funds. If Leeds are going to become a club that can take Premier League status for granted, they need a bigger stadium, better players, a trophy. Put simply, they need money. They lost more than £60 million in their promotion season after losing £20 million the season before. The injection of more than £100 million of lovely Premier League broadcast revenue will improve the 2020-21 accounts but most promoted teams lose money again in their second season in the top flight. please log in to view this image The option held by 49ers Enterprises includes Elland Road (Photo: Oli Scarff/AFP via Getty Images) Leeds have a lot more going for them than most, though. Their commercial income in the Championship was just over £29 million — better than Aston Villa, Wolves and half a dozen Premier League sides that same season — but life moves fast. As mentioned, Newcastle have been bought by wealthy chaps from Saudi Arabia and a Czech billionaire is starting the same journey at West Ham that the 49ers began at Leeds in 2018. Leeds cannot stand still. Owners of sports teams in the US are not simply expected to subsidise losses every season. American teams either make profits or get close enough for the tax breaks to be worth it. They are not holes in the ground that owners fill with cash every year. This explains why many British football fans hear “American owner” and shudder. They think “there goes our star midfielder and here comes increased ticket prices, bizarre sponsors and overseas tours”. But in Leeds’ case, hasn’t this already been happening to a degree? And although FSG has not responded to every Liverpool fan’s Christmas wish list, they have delivered silverware, a redeveloped ground and a team that looks pretty good to the rest of us.
Good piece that Matt What it does is highlight the syndicate ownership model where different parties have skin in the game. 49ers and their expertise in sports marketing, maximising fan revenue, tv broadcast deal expertise. Lowy and his building expertise in huge developments like New Wembley and shopping malls worldwide, Hurley and his links to big tech, youtube, streaming services and the synergies between online advertising, marketing and broadcast rights. Leeds Utd are now well placedif the Premier League do gheir own deal like F1 or NfLin the States, or going it alone and just selling Leeds matches all around the world via a dedicated platform or streaming service or pay per view. Also remember that Radz is also massive in sports broadcasting via Aser and his own11 sports broadcasting This ownership model gives Leeds Utd massive growth potential and top specialists in every type of business model imaginable
