Leeds owner Radrizzani faces losing out on £270m if club relegated
Leeds owner Andrea Radrizzani faces losing out on £270MILLION if the club are relegated with the minority owners San Francisco 49ers not willing to pay more than £150m to take overall control with the club in the Championship
- Leeds owner Andrea Radrizzani faces losing up to £270m if they are relegated
- Due to a spectacular collapse in their potential sale value to minority owners
- Club are otherwise well protected financially in the advent of relegation
Leeds owner Andrea Radrizzani faces losing up to £270m if Javi Gracia’s side are relegated this season due to a potentially seismic collapse in their sale value.
The club’s minority shareholders San Francisco 49ers have an option to take full control at Elland Road in a deal valued at £420m, but that price only applies if they remain in the Premier League.
The 49ers Enterprises view Leeds as a long-term investment and would remain interested in completing the takeover even if they were in the Championship, but in the event of relegation would only value the club at £150m.
The NFL franchise first bought into Leeds five years ago and currently own 44 per cent of the club, as well as securing an option to take overall control that expires next January.
That provisional sale agreement was negotiated during the 2020/21 season in which Leeds were flying high and finished ninth in the Premier League however, with the price of £420m predicated on the club being firmly established in the top-flight.
Leeds owner Andrea Radrizzani faces losing out on £270m should the club be relegated
Leeds are in serious danger of going down after some poor recent results – including conceding 11 goals in just two home games
The agreement for the San Francisco 49ers to purchase the club outright for £420m was predicated on their initial success under Marcelo Bielsa in the top flight
While no fixed price has been agreed for Leeds as a Championship club sources with knowledge of the talks have told Mail Sport that the 49ers would pay no more than £150m outside the Premier League.
Under the terms existing agreement Radrizzani is not compelled to sell, but may still choose to do so as he has been open about being unwilling to provide the funds required to take Leeds to the next level, and is also reportedly interesting in buying Inter Milan.
In an interview with Italian newspaper Corriere Della Sera published last December Radrizzani said Leeds required ‘more resources to reach higher levels and compete with the best clubs in the Premier League.’
The 49ers option to buy expires halfway through next season so in the event of relegation Radrizzani would have to renegotiate the entire deal if he opted to wait for Leeds to regain Premier League status. Another option open to the Italian would be to agree to a cheap sale in return for securing bonuses if Leeds are subsequently promoted.
Leeds narrowly survived relegation with a win at Brentford on the final day of last season and deep in trouble again following Monday’s 6-1 home thrashing by Liverpool, with just two points separating them from the bottom three with seven matches of the season remaining.
Leeds are hovering above the drop zone after a poor run and have a difficult series of fixtures to finish the season
Gracia’s side also face a daunting fixture list in their battle to survive, with their run-in featuring games against relegation rivals Leicester, Bournemouth and West Ham as well as Manchester City, Newcastle and Tottenham at the other end of the table.
While Radrizzani would lose out Leeds as a club are well-placed to cope financially in the event of relegation.
Gracia’s players all have relegation clauses in their contracts stipulating significant pay-cuts in the Championship, while funds could also be raised by the sale of Italian striker Wilfried Gnoto, who is valued at £30m just nine month after his £3m signing from FC Zurich.
In addition the club also have strong commercial revenues and a waiting-list for season-tickets.
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