Discussions with 49ers cause complications over Leeds United valuation – Phil Hay
The present situation at Leeds United is causing “complications” between primary shareholder Andrea Radrizzani and the second major shareholder 49ers Enterprises, according to Phil Hay.
Speaking on the Athletic podcast (8 February), Hay shared that publicly the club briefs that the relationship between Radrizzani and the 49ers group is healthy and positive, but underneath, there are complications.
Leeds are 19th in the Premier League table and there are genuine concerns that the club could get relegated. In such a scenario, the value of the club would fall, and discussions have been going on about what would happen in that case regarding a complete takeover.
While the final valuation of the club will be unknown, it can be assumed that it will be close half a billion pounds. If Leeds gets relegated to the EFL, that value may drop.
“There is no doubt at all though from speaking to people, the situation is causing complications,” said Hay (8 February; 12m00s onwards).
“It is not purely the relationship that is causing complication but also the state of play with Leeds United where they are in the table at the moment.
“If Leeds gets relegated, there is a serious chance of that this season, they are not gonna be worth half a billion pounds in the EFL, so one of the things that has been very much under discussion has been what happens if they go down.
“As we understood, in that initial agreement for the option for them to buy Leeds, there was no contingency for relegation.”
Problems
It will get very messy in terms of club takeover if Leeds drop down to the Championship.
The 49ers will want to take control of the club that are in the Premier League, and they want to redevelop the club in their own way.
At the moment, there are problems in terms of decision-making. Obviously, Radrizzani, being the major shareholder makes the final decision, but it’s not that easy.
For instance, in the January transfer window, the Whites dithered about the signing of Georginio Rutter, and at one point they discussed sending him back on loan.
However, the 49ers pushed through the deal as they wanted the player to be signed now.
Regarding the valuation of the club, it could become complicated. After the club got promoted to the Premier League and talks with 49ers developed, very few had thought that Leeds could actually go down again in the Championship.
Probably, all parties were busy making lofty plans about how they would take the club forward without thinking of such a scenario.
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