The Political Economy of Football V2

Running Leeds has given  Andrea Radrizzani status beyond anything he had known before. Prior to investing in 2017, he was an entrepreneur with little or no profile outside niche media circles. He liked the exposure and he liked the attention but, as predicted in certain quarters, he was missing from the stands for the game against Tottenham, conspicuously absent as Leeds gave up the ghost and went down. Previously, his £45million investment in Leeds had risen tenfold to a level where the club were valued at half a billion pounds but at full time this afternoon, Premier League status was gone and so was that price tag. To all intents and purposes, the Radrizzani project has run its course. Leeds are back where they started. From here, though, everything that happens will be shaped by Radrizzani’s next move. The offer of a takeover by minority partner 49ers Enterprises is still on the table, albeit at a significantly lower valuation.  From the very beginning, though, Leeds...

What does the Swiss Ramble do at the weekends?   Does he leave Zurich to ski or walk in the mountains?   Does he go for yodelling lessons?   No, he tirelessly works away at interpreting a club’s latest accounts and this week it is the turn of Leeds United.   He tweets his findings rather than putting them in a blog format, so I consolidate them so that more can benefit from his insights. I have argued that for many years a vibrant regional capital like Leeds deserved to be represented in the top flight.   The Swiss Ramble states: ‘ Promotion to the Premier League has clearly transformed Leeds finances, even when impacted by COVID (though the loan write-off also helped). Leeds enjoy a structural competitive advantage from being the only club in UK’s third biggest city, leading to good commercial prospects.’ 2 nd highest profit in Premier League Leeds swung from a £62m pre-tax loss in the Championship to £26m profit in the Premier League...

As predicted, NFL franchise San Francisco 49ers have increased their stake in Leeds United to 37 per cent in an interesting cross sports collaboration:  49ers Enterprises increases Leeds United ownership stake to 37% - Leeds United Leeds is now valued at £277m after being purchased for £45m four years ago.  The deal will strengthen the strategic link with the 49ers commercial experience highlighted as being of most benefit. Leeds owner Andrea Radrizzani said: 'I love what Leicester has done over the past 10 years in the Premier League.  That's what I aim as a model to follow.' Many ambitions in football are unrealistic, but this one is given the status of the city of Leeds as a vibrant regional capital and the history of the club.   It is anticipated that one outcome will be work to enhance the Elland Road stadium. More about the deal here:  https://www.soccerex.com/insight/articles/2021/49ers-enterprises-increases-leeds-united-ownership-stake

Leeds owner Andrea Radrizzani is considering a takeover at struggling La Liga club Valencia with the San Francisco 49ers.  He thinks that they are in a similar condition to that of Leeds before he took over there, i.e, a fallen giant:  https://www.football-espana.net/2020/12/28/leeds-united-owner-tipped-for-valencia-takeover-bid Where he would get the funds from is one question, but apparently he has backing from American investors in the form of San Franncisco 49ers.   They are about to increase their stake in Leeds. Radrizzani has been keen to expand his football portfolio for some time with Premier League promotion for Leeds enabling him to look into buying another club.   He previously showed interest in struggling Serie A club Genoa.

Leeds owner Andrea Radrizzani reckons that Leeds United will take a £40m hit from the Covid-19 pandemic this season:  https://www.leeds-live.co.uk/sport/leeds-united/leeds-united-radrizzani-coronavirus-finances-19341056 The limited return of fans to stadiums may not help Leeds as the city could well be allocated to tier three where no fans are allowed.   In any case, most clubs estimate they will lose money on the return of limited numbers of fans given additional stewarding costs and the loss of drinks sales. It is particularly hard for Leeds as they wanted to celebrate their return to the Premier League after a long absence with their fans.

Leeds United owner Andrea Radrizzani is considering a bid for Valencia.  The club's Singapore owner, Peter Lim, knows Radrizzani well and is under pressure to sell from the club's fans who have protested about his stewardship. Radizzani is considering building up a group of clubs that would have synergies with Leeds.  However, unlike Manchester City his focus would be on Europe and in particular France, Italy, Portugal and Spain. The San Francisco 49ers NFL franchise, which has a 13 per cent stake in Leeds, has said that it is keen to invest more in the club.

Investors are lining up to back the ambitious plans of Leeds United according to owner Andrea Radrizzani in an interview with the Financial Times Weekend edition.  He has rejected takeover offers in recent weeks, but is willing to sell a minority stake in the club on the basis of a £270m - £300m valuation. 49ers Enterprise, the investment arm of the San Francisco 49ers NFL team, has said it is willing to increase the 10 per cent stake it acquired in Leeds in 2018. Last year Qatar Sports Investments, the state-backed group that owns Paris Saint-Germain, held investment talks with Mr Radrizzani.   It is thought to be still interested in acquiring Leeds outright. Mr Radrizzani said that he is interested in creating a network of clubs like City Football Group or drinks manufacturer Red Bull that controls teams in Australia, Brazil, Germany and the US.  They would develop footballers that could eventually play for Leeds. He was evaluating teams in the top divisions of Ita...

Leeds United owner Andrea Radrizzani reckons that losing five home games because of the Covid-19 crisis will cost the club £2.5m and it is already losing £8m - £10m a year. However, he is hopeful of securing promotion to the Premier League on the pitch: Disaster for club's finances

Qatari Sports Investment, the owners of Paris Saint-Germain, are closing in a takeover of Leeds United. They will buy a stake initially and take complete control at a cost of £120m if Leeds are promoted to the Premier League: Closing in on takeover Leeds owner Andrea Radrizzani will consider using part of the proceeds of the sale to buy another European club, possibly Genoa in Serie A which is currently up for sale.

According to The Times this morning Leeds owner Andrea Radrizzani will not consider selling a stake in the club for at least a year despite the reported interest of Qatari Sports Investment (QSI). The original story was in the Financial Times and I wonder if someone close to QSI has been talking to the Pink 'Un, while The Times story came from sources close to the club. It could all be part of a negotiating game. The line The Times is taking is that there would be no point in anyone taking a stake at this point in time as it could not be put into the club because of financial fair play rules. I would have thought that an equity stake could get round this, but in any case the objective might be to tidy up Radrizzani's personal finances. What seems a stronger argument is that Leeds would be worth more if promoted to the Premier League next season. Of course, we have been waiting for that for some time. I have been guilty of saying at the start of every season for some ...

According to a report in the Financial Times the state-backed Qatar Sports Investments, which controls Paris Saint-Germain, has been in talks to buy a stake in Leeds United. Qatar has wanted to enter English football for two years and Leeds is their club of choice. However, at least six different potential investors have held talks with Leeds whose owner, Andrea Radrizzani, prefers to sell a minority stake in the club. Talks have been restarted after the club lost in the end of season play offs. Qatar is the controversial location for the 2022 World Cup. The world's richest nation in per capita terms, it has increasingly been using sport to project its soft power. Radrizzani has spent £100m on Leeds since he acquired the club two years ago and by selling a stake would be able to reduce the risk of his holdings. Last year he sold a 10 per cent stake in the club to the investment arm of the San Francisco 49ers NFL team. The reaction of Leeds fans to the news is discussed her...

The sports streaming service launched by Leeds owner Andrea Radrizzani, Eleven Sports UK, is in financial trouble with reports of £30m owing to creditors and could be forced to close: Financial problems This need not have any financial implications for Leeds United. However, one view is that there could now be added pressure on Leeds to achieve promotion this season because of fears over cash-flow issues. Leeds insist that it is business as usual, and sources have said Radrizzani is in talks to restructure the UK company and is hopeful of finding a solution.

Kieran Maguire of the PriceofFootball has taken a look at the case put forward by Leeds United owner Andrea Radrizzani for a Premier League 2. His argument that the club is on TV more than any other in the Championship but has the lowest proportion of broadcast income to total percentage does explain why Radrizzani so unhappy, although he may have ulterior motives too. Maguire points out that Championship clubs already generate 53% of their income from TV, compared to 61% in Premier League, so on a proportionate basis the gap is narrower than many perceive. If one strips out generous parachute payments TV only generates less than one third of Championship money. In the Championship there is much greater reliance on matchday income, especially if parachute payments are excluded. In the Premier League only five clubs have less than half their total income from broadcasting. He observes that in the Championship Leeds leverage on the number of TV appearances by using this to negotiate ...

Today is Non-League Day and I am going to a match at my local club in Tier 2 of the pyramid, Leamington FC. I would go even if it wasn't non-league day. Ever since the 1950s there has been a block on showing live games on television on Saturday afternoons with the objective of protecting attendances and amateur clubs. But in the face of modern technology, determined individuals and competitor leagues, can this practice be maintained? The latest threat comes from a plan to show live La Liga games in the UK on Saturday afternoons. The company behind the plan is Eleven Sports, owned by Andrea Radrizzani, who also owns Leeds United. He claims that betting sites and illegal sites are already showing the games live. Radrizzani is also in discussions with Serie A about showing Italian games during the blackout, too. Joris Evers, La Liga’s chief communications officer, told The Times : 'This type of blackout doesn’t make a whole lot of sense. It’s from a different age. We are a...

Leeds United owner Andrea Radrizzani has called for the creation of a 'Premier League 2' to help Championship clubs receive more television revenue: Owner's call Leeds earned £7.5m in 2017 under the EFL television deal, compared to a guaranteed £100m for the team that finishes bottom of the Premier League. Six of Leeds' 12 league games this season have been moved for TV coverage. 'We lose money and we are creating a show that is high-interest for everybody,' said Radrizzani. Radrizzani, who became sole owner of Leeds in May 2017, says has received multiple takeover approaches for the club, but values it at 'double what I invested in it'. In a sense there already is a Premier League 2 because of the generous parachute payments that relegated clubs receive. Leeds have, of course, not benefited from these as the capital of 'God's Own Country' has been out of the Premier League for what will be fifteen years if they are promoted this season....

Wolves are in a strong position to win the Championship, but some of their rivals have taken exception and have claimed that Wolves are breaking EFL rules. A written complaint has been made by several clubs, an unusual step. Essentially there are two issues. One concerns Portuguese super agent Jorge Mendes. The Chinese owner of Wolves, Fosun, has a stake in Mendes's company Gestifute. Other Championship club chairmen have questioned how Wolves have been able to afford and sign players, many of whom are linked to Gestifute, from some of the biggest clubs in Europe. The Wolves head coach, Nuno Espirito Santo, is a former goalkeeper who was Mendes's first client, and remains close to him. The written complaint was discussed at a meeting of the EFL board on Thursday. 'It was agreed that the EFL executive will meet with the management of the club to reiterate our requirements and those of the FA and will report back to the board.' Wolves would have to demonstrate that an...