Adam Williams – Head of Football Finance and Governance Content for GRV Media – has now commented on how the World Cup might impact Leeds.
The famous tournament takes place in the United States within a matter of months, with the 49ers firmly involved as some games take place at the Levi’s Stadium – home of the San Francisco 49ers.
Williams has now exclusively told Leeds United News about how the World Cup could make Leeds even more attractive to potential buyers in the American market.
Exclusive: World Cup could spark “new wave” of American investment as 49ers target eventual £1bn Leeds United sale
Williams, who is well-connected with investors in the 49ers, said: “The 49ers are going to be close to the World Cup in the summer by virtue of there being matches staged at the Levi’s Stadium, sometimes called the Field of Jeans – which I always chuckle at.
Which player would you be happy for Leeds to sell in January to fund their transfer business? Let us know in the comments… 🤔💰
The likes of Joel Piroe and Willy Gnonto are struggling to force their way into Farke’s plans.
Photo by Michael Regan/Getty Images
👇 Join the debate; share your insight. Use the comment button on the bottom left to have your say
“As I understand it, the 49ers lease the stadium as opposed to owning it, but they will have communicated with the Santa Clara Authority about it and – I am fairly confident in saying – will have given it their blessing and a full-throated endorsement.
“Some cities are going to lose money from hosting the World Cup. There’s going to be a big indirect economic impact in the final analysis, I presume, but the margins look thinner than they have historically in other counties.
“So, the fact that NFL teams, local authorities and so on are still all so keen to host the World Cup tells you all about the soft power and cultural sway that it affords you.
MORE LEEDS UNITED STORIES
“I’ve spoken to a lot of people who think that, once they see how those benefits crystallise, there is going to be a new wave of American investment in football. Private equity is already getting into the sport big-time. 49ers Enterprises – who are effectively the private equity arm of the San Francisco 49ers – were early adopters in the grand scheme of things. I think it was 2018 that they first bought into Leeds, which was well before most of the behemoth private equity houses got involved in the sport.
“The asset prices of Premier League clubs in particular are now getting so high that there is ultimately only a relatively small pool of buyers who can afford them. If you’re paying, say, £2bn or £3bn for a football team that loses money most years and isn’t going to be profitable for decades, that is going to have to be part of a wider portfolio of £30bn, £40bn, £50bn and so on. That’s how these kind of institutional investors hedge their exposure.
Photo by Harry Trump/Getty Images
“Look at Atletico Madrid, who have just been bought by Apollo. Apollo have about £700bn worth of assets under management, which is almost the same as Newcastle United’s owners – the Saudi Public Investment Fund. That’s how high the stakes have gotten.
“I’ve seen materials that the 49ers have put together when they have been seeking investment, and it’s pretty clear to me that, when they do sell Leeds, they will be courting other private equity firms to sell to, as well as sovereign wealth funds – but there aren’t many of those.
“So I think the World Cup could have a very real impact on the future of Leeds United. If the thesis of some of the people I speak to is correct, it’s going to galvanise and lock in the enthusiasm from the American market. That’s where the treasure is buried.
“You’d be surprised about the way some of these private equity heads talk about football. They might not understand it like we do, but they absolutely recognise the emotional response it elicits in people and the mind-bending scale it has globally. They speak about it in quite esoteric terms. If they get the formula right, they think that they can finally monetise it in a way that has never happened in 150 years of Association Football.
“The 49ers are targeting an eventual sale price of about £1bn. From what I’ve heard, there’s a time horizon – which is the buzzword that these private equity firms use when they want to describe how long it will take to generate a sufficient return on investment – of three to four years at Leeds, although that will be fluid.
“The 49ers will easily get that £1bn valuation, assuming they keep Leeds in the Premier League for a few years and get the stadium project right. The fascinating thing is going to be finding out what the next guys’ ambitions are and how they think they can scale the club financially beyond that. That’s the kind of aspiration and zeal you only really get with private American capital.”
Where are Leeds United at with the Elland Road expansion?
Williams mentions the “stadium project” above, but Leeds currently face a problem as they aim to increase the capacity of Elland Road from 37,890 to 53,000.
The Leeds United players who are in with a chance of playing at the World Cup🌍
- Joe Rodon (Wales – play-off in March)
- Ethan Ampadu (Wales – play-off in March)
- Karl Darlow (Wales – play-off in March)
- Dan James (Wales – play-off in March)
- Ao Tanaka (Japan)
- Brenden Aaronson (USA)
Photo by Rene Nijhuis/MB Media/Getty Images
👇 Join the debate; share your insight. Use the comment button on the bottom left to have your say
Leeds Live recently claimed that the Leeds City Council want the club to revise their transport blueprint – amid concerns over how the Whites plan to cope with an additional 15,110 bodies on the streets on matchday.
Nevertheless, it is said the project – which would generate £25m more in matchday income for Leeds – still has a wide range of support behind it.
In that case, once Leeds appease the council in regards to transport, we expect the project to be given the green light.
Join Our Newsletter
Receive a digest of our best Leeds content each week direct to your mailbox