Kieran Maguire reveals why Leeds valued £95m+ more than Newcastle after 49ers update
Leeds United are valued at £95million more than Newcastle because of the club’s infrastructure and locality.
So says football finance expert Kieran Maguire, speaking exclusively to Football Insider about the San Francisco 49ers option to buy the Yorkshire club.
As revealed by The Athletic‘s David Ornstein (6 December), the 49ers have a deal in place with current owner Andrea Radrizzani to take 100 per cent control of Leeds by January 2024.
A purchase option between £400-475million is said to have been agreed between the two parties in January.
The 49ers currently have a 44 per cent minority shareholding at Elland Road.
Premier League rivals Newcastle United were sold for £305million in October.
When asked by Football Insider‘s Dylan Childs why Leeds are valued at £95million more than the Magpies, Maguire said:
“I suspect the price will be a multiple of revenue. A lot will depend on how much Leeds are making in a couple of years time.
“Anyone who bought Newcastle was buying a house that was rundown. Mike Ashley had spent the bare minimum in terms of the infrastructure so a huge investment was required on top of buying the club in terms of the stadium facilities, the training facilities, the medical facilities and so on.
“Whereas Leeds are in a better position than Newcastle. Not a great position because they had 16 years out of the Premier League. They had a series of rogue owners as well and that has not helped.
“Some of the positives for Leeds is that it is more of a business hub than Newcastle. Therefore, they can attract sponsors from the finance industry that much easier. All of this contributes to potential higher cashflows.”
In other news, Noel Whelan expects Leeds 17-year-old is in line for first-team promotion after Bamford update.