Dr Dan: Leeds United valuation could fall up to £100m in case of relegation
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist. Each week he’ll be giving his views on the biggest talking points at Leeds United...
Leeds United could have their valuation reduced by a staggering £100million in case they get relegated.
That’s according to Dr Dan Plumley who claims that relegation could be a big blow for the Whites due to the absence of TV revenues.
Even with the parachute payments, he believes that losing out on the TV deal that the Premier League comes with is going to be massive.
Recently, Andrea Radrizzani sold more of his stake in the club to the San Francisco 49ers, but still remains the majority owner.
However, Plumley believes that the pre-determined valuation is set to change if they cannot retain their top-flight status.
Speaking exclusively to MOT Leeds News, he said, “Not an exact science, but you can take £60million and knock it off the revenue in case of relegation.
“That’s the difference between Premier League TV money and a first-year parachute payment.
“We’ve got reports that they’ve got relegation clauses for some players so that’ll help but takeover wise, you can take up to £100million off that valuation if the club’s relegated and it might be more than that which could be a big blow.”
According to The Athletic, the 49ers have a deal in place to complete the full takeover of the club for a fee in excess of £400million.
This could be exercised by January 2024 with Radrizzani still staying on as a minority stakeholder.
In other Leeds United news, the Whites are leading the race to complete a major signing and have already opened talks to seal a £25m deal.