Leeds complete stunning new £15m deal - report
Leeds United have announced a new link-up with the San Francisco 49ers, which could have major implications for the summer transfer window.
The news of the investment was announced on the official Leeds Twitter page on Thursday morning.
49ers Enterprises is the investment wing of the US football club.
???? | Leeds United has today announced a strategic partnership with 49ers Enterprises, an investment entity affiliated with the @49ers
— Leeds United (@LUFC) May 24, 2018
Following this news, Mike Thornton, company secretary at Leeds Fans Utd, revealed more details of the deal.
He claimed that the deal was for slightly over 10% equity of the club, which would equate to around £12-£15million.
He adds that this is in new share equity and so no additional debt is being loaded onto the club.
Paraag Marathe is president of 49ers Enterprises and will now sit on the Leeds United board.
Football Insider verdict:
This is great news for Leeds, and not just for the injection of cash. That is great and if the upper end of Thornton’s expectations are correct, it means an immediate boost of £15million which could go straight to transfers. It also means that wages might increase. Thornton also said that there has never been a wages cap at Elland Road under Andrea Radrizzani but that no one is paid more than £15k-a-week because that’s how much there is to go around. This could mean that some players are paid more, especially if the squad is trimmed significantly this summer. However, the 49ers also bring with them promise of new technology and their know-how could be used to improve Elland Road, which is on the road to being “digitised”. It also gives Leeds inroads into the States, which is another huge bonus. After a season where Leeds fans didn’t get much but bad news, this is a great boost ahead of hopefully a very good summer of business.
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