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world record’ deal : Leeds United could now secure £150m of cut-price signings thanks to 49ers ‘world record’ deal

Photo by Harry Trump/Getty Images

Leeds United could secure £150m of cut-price signings thanks to 49ers deal

As the owners try to solidify Leeds’ position in the Premier League, the thought of spending £150 million on signings would undoubtedly be welcomed.

The 49ers sold a £6.4 billion stake to assist fund the ongoing activities, so it appears like Paraag Marathe is doing everything in his power to help Leeds have a good season.

This was made evident when the 49ers gave out £120 million worth of new shares to current investors, which should assist pay for the club’s planned expenditures.

Adam Williams, a financial specialist, discussed what might currently occur with Leeds’ transfer window structure in an interview with LeedsUnited.News.

“If the mood music is that the recent £120m share issue is being ringfenced for transfers, that would indicate that Leeds are going to be front-loading a lot of their deals this summer,” Williams said.

“In layman’s terms, that means paying more of the transfer fees upfront rather than in instalments.

“That’s significant as it’s a pivot away from the strategy we saw under the previous ownership. They had transfer debt of £142m when their last accounts were published, and around half of that was due this season. That was by far the biggest in the Championship and would have been top half in Premier League terms.

“We don’t have their accounts for 2024-25 yet, but that £70m-plus in transfer instalments isn’t too far off their entire revenue if you subtract parachute payments.

“PSR wasn’t the only reason they had to sell so many players last summer, it was a cash flow issue too to deal with the instalments.

Leeds United’s 2024 summer sales
Georginio Rutter £40m
Archie Gray £40m
Crysencio Summerville £25m
Luis Sinisterra £20m
Glen Kamara £5.5m
Marc Roca £4m
Charlie Cresswell £2.5m
Diego Llorente £2.5m

“It’s a perfectly legitimate way to structure your cost base, but it does mean things can get tricky if you’re relegated and your revenue falls off a cliff. So if this £120m is going largely towards transfers as opposed to running costs, that suggests a change of approach.

“A lot of smart clubs do it this way. Liverpool and Man City structure transfers with a more front-loaded approach. It also means you might be able to get deals a little cheaper than your rivals.

“Clubs tend to want money up front if possible. If the buying club doesn’t have the cash in the bank, the selling club can go to a creditor who will give them the money upfront in exchange for a commission. But obviously that’s an expense and would be factored into the original fee.

“So, I think if you have the money, which the 49ers do – they have just sold a minority stake in their NFL franchise at a ‘world-record’ valuation – then I think it’s sensible to take this approach.”

 

Marathe can now fulfil ‘aggressive’ transfer pledge at Leeds United

Leeds may start scheduling their arrivals now that the strategy is clear and the approach is shifting.

£150 million is a fantastic sum of money, and the Whites can easily expand on their successful Championship season in the Premier League provided they spend it well.

Position Team Played Won Drawn Lost For Against Diff Points
1 Leeds 46 29 13 4 95 30 65 100

This window, the 49ers are asserting their dominance and will not hesitate to invest in issues if doing so increases their chances of surviving.

Compared to the previous two windows, which saw sale after sale rather than arrival after arrival, this is a sharp contrast.

“We want to be as aggressive as we can be, which is probably going to require us to be as creative as we can be as well,” Marathe said as he concluded his transfer window commitment.

He now has the opportunity to do so, and this novel strategy is undoubtedly checking off the creative box.

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