Leeds United owner Andrea Radrizzani must come to terms with the startling impact Premier League relegation has had on the club’s overall value. The Whites were said to be valued at a figure close to £450m earlier this year while they were competing in the top flight, but football finance expert Kieran Maguire believes that number may have fallen by approximately £300m after dropping into the Championship.
He believes Leeds, in its current guise as a second tier outfit, may only be worth as little as £150m on the open market and that complicates the matter of a proposed takeover from 49ers Enterprises considerably this summer. Minority shareholders 49ers Enterprises currently own 44 per cent of the Whites and there have been suggestions of an agreement in place to complete a full takeover at Elland Road over the summer should Leeds stay up.
However, their relegation to the Championship, which was confirmed on Sunday with a 4-1 loss to Tottenham, means if Radrizzani was to sell this summer, he would probably have to do so at a fraction of the price. Leeds will be worth more than most clubs outside the top flight given their assets and the addition of parachute payments from the Premier League for the next three seasons.
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The Whites ought to be well placed for a tilt at promotion next season, too, but nothing is for certain and there’s a lot of risk attached, should a takeover be completed. Leeds’ value, according to Maguire, reflects that and it remains to be seen how Radrizzani and 49ers Enterprises progress with discussions.
“The figure quoted at £450m for Leeds as a Premier League club to me seemed quite fair,” Maguire told Leeds Live. “I think Radrizzani bought it effectively for around about £100m, you should get around £150m at least in the Championship because you are guaranteed three years of parachute payments but the Premier League is where it’s happening.
“Bournemouth went for £150m a few months ago and clearly Leeds is a much bigger club, but you would expect a step down because the new owners are taking on all the risk and as we’ve seen before, there’s no guarantee of bouncing straight back to the Premier League.
“Burnley and Sheffield United have done it. Sometimes when there’s a change at the club, new people come in with new ideas, new manager and new culture.”
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