George Overhill

Mon 12 June 2023 7:10, UK

There has been “reticence” from some of the 49ers Enterprises investors to go ahead with the Leeds United takeover due to relegation, according to Kieran Maguire.

The club announced on Friday night (9 June) that an agreement had been reached between the Americans and Andrea Radrizzani for 100% of the club to be sold.

But after the Whites were relegated back to the Championship there was some cold feet on the buyers’ side over potential heavy losses in the second tier in light of how long it took the club to get back up the last time they went down says Maguire.

Speaking on The Price of Football podcast (12 June, 4m) the sports finance expert from the University of Liverpool said: “Yes it would appear that Leeds United’s majority shareholder Andrea Radrizzani has accepted an offer from the San Francisco 49ers investment arm.

“Lots of people think that therefore we are going to have a multi-sport business here. To a certain extent the 49ers investment arm are completely independent of the sports entity itself, they’re using the name and the credibility and reputation that comes with it.

“It’s my understanding from talking to people who talk to people etc. it would appear that there has been a bit of reticence from some investors themselves as to whether this deal should go ahead.

“It did take Leeds longer I think than they expected, longer than anybody expected, for them to get back to the Premier League in the first place. And no-doubt somebody would have pointed out that with average losses in the Championship of £20million-a-year, if you’re just looking at Leeds United from an investment perspective it could be a very expensive exercise.”

With the overall valuation of the club £170million, compared to the £400million-£450million as a Premier League outfit, Maguire also called it a “very expensive relegation from Radrizzani’s perspective”.

Sink or swim

There is risk involved in any investment, and while there is no doubt that a Leeds United that is stuck outside the Premier League for any length of time becomes a concern there is also a big opportunity for the 49ers now.

They appear to have made a hefty saving on the price paid to Radrizzani thanks to the drop to the Championship.

And while it is absolutely not nailed on, and key factors must be got right in order to make it happen, promotion is surely most likely within the next 12 months.

Parachute payments, coupled with the sale of unwanted but high-priced international stars, should guard against the common losses felt by second tier sides, while giving the Whites a head start on rivals for the promotion push.

Getting the right manager in very soon is going to be a key element in that push, and then making the right moves in the transfer market.

But if Leeds do make it back up in short time the 49ers are sure to be delighted with their investment, as the value of the club could quickly more than double once more.

In other Leeds United news, a “crazy” fee verdict was included as the Whites were backed to complete the signing of an “instrumental” goalscorer this summer.