Dr Dan: Leeds United will not be taken over for more than £200m in the Championship
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 are unlikely to be taken over for a £200million if they get relegated from the Premier League this season.
That’s according to Dr Dan Plumley, who has factored in a £100million loss in valuation in case they become a Championship team this season.
He still believes that how much Andrea Radrizzani would value the club would be far too high and no owner would be willing to pay that much.
Currently, the Italian businessman has a majority stake in the Whites, but the San Francisco 49ers are believed to be looking at a full takeover by January 2024.
In December 2021, The Athletic reported that the 49ers has a deal in place to buy Leeds United for a total price in excess of £400million.
Discussing this proposed takeover in case they get relegated, the Sheffield Hallam University expert told MOT Leeds News, “You’ve got questions in there about exposure and commercial leverage and we all know that those things are much higher if you’re a Premier League club.
“Even if the valuation reduces significantly, is anyone going to pay £200million for a Championship club?
“There are a lot of teams in that league where people are looking for around £60million to £90million for clubs in that division.
“That’s the danger of the valuation if they get relegated and you can add that back on if they get promoted right back up.
“Whichever club ends up in 18th place, it’s an absolute financial disaster. I would say that Leeds are in a better position to drop off than Everton and Burnley purely because they’ve not been in the Premier League for long.
“It will hurt the takeover but if the owners have long-term aspirations then it might not hurt things in the long run.”
In November 2021, Radrizzani sold seven per cent of his shares in the club to the 49ers – taking their current ownership of Leeds up to 44 per cent.
The Italian does plan to stay on as a minority shareholder even after the full takeover is completed and the Americans become the majority owners.
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.