Stefan Borson: This is how Leeds can reach £1bn valuation after 49ers document leaked
Leeds United could reach a £1billion valuation within five years after a leaked 49ers Enterprises document has been revealed at Elland Road.
It was revealed in May that Leeds’ owners would issue £120million of new shares in the club, with 49ers investors asked to help bankroll the injection.
The Athletic reported on 10 September that cash is set to fund business operations, carry out the Whites’ stadium expansion project and enable the club to bring in £300m worth of players over the next three years.
The news outlet said it has seen a leaked 50-slide deck, where the 49ers laid out their plans for Daniel Farke’s side over the coming years.
The 49ers currently estimate Leeds to be worth £527.5m, with that figure projected to increase to around £1bn by 2030.
Leeds must qualify for Europe after 49ers plans revealed
Former Man City financial adviser Stefan Borson exclusively told Football Insider Leeds will likely need to qualify for Europe to reach their owners’ ambitions.
Farke helped Leeds secure promotion back to the Premier League last season after claiming the Championship title.
Speaking exclusively to Football Insider about the 49ers’ plans, Borson said: “I think it’s very realistic if they can stay in the Premier League.
“By 2030 is not a particularly aggressive plan, but it depends on how they’re going to move that revenue line. They’re only going to move the revenue line if they’re higher in the league, potentially in one of the European competitions, and then having the knock on of the commercial deals that go with that.
“Also, with the stadium, I can’t remember what the plans are, but if you build 10,000 extra seats, then you’re going to generate another £10m a year maybe of stadium revenue.
“But on the sort of metrics they’re talking about is, can we get revenue to £300m? If we get revenues to £300m, can we justify it being worth 3.3 times revenue, which is £1bn, right? That’s in simple terms, can they get to £300m of revenue?
“Well, what’s going to happen to the TV deal? That could be easily worth £200m of TV money over the next five years, so then you’re going to find another £100m from commercial on matchday. Is that doable? Feels like it.
“There’s your £1bn valuation. Let’s see where we go. In very simplistic terms. So, it’s a perfectly fine ambition.
“It’s just the problem is loads of clubs have got an ambition to move up the table. It’s easier to say than it is to do, and it’s very hard to maintain it.
“We know how competitive the league is and then of course you’ve got layered on top of that all of PSR, so how do you do it within those restraints? And if PSR goes, what does PSR look like? What does a replacement look like?”
Leeds posted a record-breaking Championship revenue in their latest published accounts for 2023-24 despite seeing their turnover fall from £189.7m in 2022-23 to £127.6m.
Leeds to trigger £300m signing spree
Leeds’ owners are planning to spend £300m on transfers across the next three seasons.
In the summer window, the Whites signed Anton Stach, Noah Okafor, Jaka Bijol, Lucas Perri, Sean Longstaff, Gabriel Gudmundsson, James Justin, Sebastiaan Bornauw, Dominic Calvert-Lewin and Lukas Nmecha on permanent deals, taking their spending to around £98m.
Farke’s side have picked up four points from their opening four games of the new Premier League season.
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