Leeds United have plenty of unanswered questions financially to resolve this summer, given the scale of the 49ers’ plans and a Premier League rebuild.
Leeds United are in a position where the 49ers have collected a ‘jaw-dropping’ windfall from promotion, but the question over how much Leeds can then spend remains to be answered until the summer deals start rolling in.
the Whites have plenty of quality already but it will not be enough to hit the ground running instantly in the top flight, meaning additions are paramount. Leeds sales cannot be ruled out for PSR reasons, though, either.
They will want to retain as much quality as possible, but finances could dictate matters and Paraag Marathe believes Leeds players will be sold this summer. Currently, there is a £61 million leeway for Leeds but they will create more in PSR-terms.
Photo by MI News/NurPhoto via Getty ImagesThe 49ers will absorb the cost of the World Cup and push on with Leeds’ Elland Road plans
According to the San Francisco Chronicle, the 49ers will lose around $37 million (£27.4 million) as a cost of hosting World Cup matches next summer. But how much does this concern Leeds and their American owners?
We spoke to our football finance expert Adam Williams for his thoughts on the situation after he revealed Marathe’s grand plan for Leeds to us last week. He explained the implications of this for the Whites back in the UK.
In a Leeds United News exclusive he said: “The 49ers will, obviously, have wanted to secure as much private investment as possible to subsidise the costs of hosting matches at the World Cup.
“However, they will have presumably been aware of the risks when they signed up. I think that speaks to the fact that there are other less direct benefits to hosting matches at the world’s biggest sporting event than simply how much income you make on the day or days themselves.
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“Having the ’49ers’ name above the door when the biggest teams in the world come to town has a massive impact on your brand reach. You might not be able to quantify the financial benefit of that overnight, but they are significant.
“We’re seeing this at Tottenham, for example. They have so far turned down naming rights offers for the Tottenham Hotspur Stadium — at least, in part, because they say they are enjoying the benefits of having the Spurs brand associated with the NFL, Beyonce concerts, and so on.
“Look at it this way, would you pay £30 million for an advert that puts the 49ers logo or brand identity in front of one billion people? Yes, you probably would. So I think they will see it as a cost of doing business.”
Premier League football means a massive increase in revenue and the 49ers plan to use some cash on reshaping Elland Road. That doesn’t just mean significantly expanding Elland Road’s capacity, but also redeveloping aspects of the stadium and surrounding areas to improve the matchday experience.
Williams addressed that aspect further, stating: “With respect to Leeds, I think you can also read something into how they will approach the revamp of Elland Road, too.
“They will, I assume, be looking to stage non-football events at the stadium, as well as future international matches — the women’s World Cup in 2035, for example. The main benefits there are the fees they will receive, but it’s also a chance to connect Leeds and Elland Road with a much larger, global audience.
“Clubs are looking to pick up new fans internationally because the customer acquisition cost is much lower than it is in the UK, where everyone already has a team. Showcasing the club to an international audience is one small way of doing that.”
Photo by George Wood/Getty ImagesThe latest on Leeds United’s Elland Road redevelopment
Daniel Farke’s Leeds side will be ‘one of the busiest’ teams in the country this summer. But the other focus for the club in the near future is redeveloping Elland Road — which is of vital importance to the club in the long-term.
Leeds City Council has agreed to negotiate a sale of land immediately while the 49ers have already announced plans to take Elland Road’s capacity from 37,792 to around 56,500.
However, there are still obstacles to overcome for Leeds regarding Elland Road expansion and it will be a multi-step process before the full completion to a capacity closer to 55,000+.
Leeds’ survival is the most important aspect of next season as a short-term goal, but the potential of the club could skyrocket off the back of the long-term investment into their home stadium.