Elland Road was once called the Old Peacock Ground, named after the pub that Leeds United fans still frequent, behind whose bar Patrick Bamford chucked £5,000 last week. New stadium names don’t tend to be as quaint these days – could Elland Road’s next lifecycle having a naming rights deal with a banking giant, a tech firm, or an airline instead?
Leeds have unveiled dazzling plans to expand Elland Road to 53,000 with the potential to add another 3,500 seats further down the line, which would mean there are only six stadiums bigger in the country.
Next up for the 49ers and their representatives in West Yorkshire? Securing planning permission.
Given the potential for the stadium redevelopment to boost the local economy, not to mention the fortunes of the city’s greatest attraction, Leeds United itself, it would be a surprise if the process did not get formal approval from the council.
Leeds United matchday income and capacity infographic
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The council have signed a memorandum of understanding with the club’s development partner, Lowy Family Group. Pete Lowy, the business’s chair, is a Leeds board member and 49ers Enterprises investor.
Albeit in a very different regulator environment in the United States, the 49ers have experience of delivering massive capital expenditure projects in the past.
Levi’s Stadium – or the ‘Field of Jeans’, as it sometimes known – is barely 10 years old and, when adjusted for inflation, is one of the most expensive stadiums ever built at £1.3bn. Last August, the 49ers committed a further another £150m for upgrades as the stadium prepares to host the Super Bowl in 2026.
It isn’t yet clear how much Elland Road 2.0 will cost, though similar projects have been upwards of £200m. Leeds plan to raise £100m via private investment, while the remainder will presumably from a blend of debt and equity from the owners.
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The timing of the announcement, while Daniel Farke’s side are basking in the glow of promotion from the Championship, isn’t coincidental. Premier League revenue will be central to servicing any debt Leeds take on, as well as fortifying the confidence of private investors.
But how exactly will the 49ers organise the finance of the stadium makeover? And, given the 49ers’ commercial ambitions, what might Leeds have to sacrifice to make it count?
Naming rights deal on the cards for Leeds United, says Kieran Maguire
Naming rights deals have historically been far bigger in US franchise sport than anywhere else. Unlike European football clubs, NFL, NBA and MLB teams don’t have front-of-shirt sponsors, so the stadium is the biggest sponsorship category available, with companies willing to pay through the nose to become a franchise’s primary commercial partner.
The naming rights deal that 49ers renewed with Levi’s last January is worth around £12.5m per year, for instance. The biggest naming rights deal of the lot, Crypto.com’s partnership with the Los Angeles Lakers, is worth more than £500m over the course of its 20-year deal length.
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Increasingly, however, football clubs are looking to the naming rights market too. Arsenal were ahead of the curve in their deal with Emirates, followed by Manchester City’s agreement with Etihad. Everton, Tottenham, West Ham and potentially Man United meanwhile are in the market for a naming rights deal.
Could Leeds be next? Speaking exclusively to Leeds United News, University of Liverpool football finance lecturer and industry insider Kieran Maguire gave his analysis.
“It’s a significant time to announce it,” says the Price of Football author, commenting generally on the finances of the plans.
“While it’s an increase of 20,000-ish, I think Leeds can more than double their matchday income from the current £30m to a pinch point of £60-70m. That will put them on a parr with the likes of Chelsea and Manchester City.
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“The challenge will be finding enough corporate takers at the right price point to justify the investment in the expansion. They certainly have the fanbase to fill the stadium – that’s not the issue. But the yield per fan who is buying the season ticket doesn’t tend to warrant the investment.
“You have to be innovative. Seat licenses aren’t very popular but can provide funding. Stadium naming rights could do some of the heavy lifting in terms of paying for the stadium. All of these things would have to be considered.
“Given that Leeds are owned by the 49ers, I think these will be part of the driving force for the funding aspect of the new stadium. It’s about how they find the money and what is going to happen in the interim, especially if they go back into the Championship in the next few years.”
Potential naming rights partners for Elland Road
Minority investors Red Bull already have Leeds’ front-of-shirt rights and are highly active in the naming rights market.
However, this is surely a non-starter. Having ‘red’ above the door at Elland Road wouldn’t fly with supporters and, even for a disruptor brand like Red Bull, the brand exposure wouldn’t be worth the negative PR.
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The same few names crop up in naming rights discussions – Allianz, DHL, banks, various Middle Eastern airlines.
It’s a saturated market at present, however, and it’s also entirely possible that Leeds opt for a clean, unbranded stadium.