Sources: New Leeds United takeover details revealed as 49ers fee agreed
The investment arm of the San Francisco 49ers actively factored in the prospect of relegation when they negotiated a set fee to take a controlling stake in Leeds United, sources have told Football Insider.
The 49ers, who own 44 per cent of the club, have a put-and-call deal in place to buy out current majority owner Andrea Radrizzani before January 2024.
A full takeover valuing Leeds in excess of £400million is now looking increasingly likely before the beginning of next season.
Football Insider exclusively revealed earlier this month (2 February) that the 49ers plan to push ahead with the deal regardless of what division the West Yorkshire side are in for 2023-24.
The pre-agreed fee contained within the put-and-call arrangement does not vary in the event of relegation – a genuine possibility with managerless Leeds currently just one point outside the bottom three.
But a source told this site that the 49ers plan to be in situ at Elland Road for at least 10-15 years post-takeover, and the US investors’ long-term capital appreciation model means falling out of the Premier League will not affect their plans.
Football Insider has now learned that the 49ers actively considered the risk of relegation in negotiations with Radrizzani and made adjustments to the business’s forecasted weighted average costs of capital, discounting future cash flows accordingly.
The news itself is unsurprising given that such troubleshooting procedures are de rigueur in negotiations of this magnitude, but it does further indicate the 49ers’ commitment to the takeover.
Paraag Marathe, president of the 49ers, is now second in command in the Leeds boardroom and the corporation has pledged to finance future capital expenditure projects.
Radrizzani meanwhile has stated that the 49ers will help the Whites shop in a more salubrious market in terms of player recruitment.
The Italian entrepreneur is expected to bank a 10-fold return on his original investment into the club just six years ago.
The 49ers’ plan to take Leeds to the next level, however, will require a more protracted approach.
In other news, Southampton battle Leeds United to lure top manager target Marcelo Gallardo.