Leeds United owners 49ers Enterprises have welcomed a new investor to their syndicate, indirectly connecting with a South American club in the process.
49ers Enterprises, the investment arm of NFL franchise San Francisco 49ers, have owned Leeds United outright since 2023. And in the last two years, they have made auspicious moves in the multi-club space.
As well as selling a minority stake in Leeds to the archetypal multi-club network in Red Bull, the 49ers have also taken over Scottish Premiership giants Rangers alongside US businessman Andrew Cavenagh.
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Further takeovers have not been ruled out, TBR Football understands, although the American owners are not actively looking at acquisitions at this stage.
In August, this site exclusively revealed that the 49ers are targeting a £1bn valuation for their investment in Elland Road within three years, assuming they survive in the Premier League this season.
As a private equity firm in all but name, the 49ers’ ultimate ambition is to deliver a return for their limited partners – in layman’s terms, that’s the group of investors who have fronted money for this project.
The group ranges from Leeds executives and company men like Paraag Marathe, Peter Lowy, Rudy Cline-Thomas, to celebrity investors like Michael Phelps, Will Ferrell and Russell Crowe.
Leeds United chairman Paraag Marathe addresses a crowd in his role as president of 49ers Enterprises
Photo by Lachlan Cunningham/Getty Images
There are dozens of limited partners in the 49ers web, with various levels of influence and buy-in.
It’s a growing contingent too, with the latest investor now confirmed.
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IDC Sports confirm Leeds United investment via 49ers Enterprises
This week, the United States-headquartered private equity firm IDC Network announced that it had made an investment in Leeds United via 49ers Enterprises using a new vehicle, IDC Sports and Entertainment.
“We joined forces with 49ers Enterprises, the investment arm of the San Francisco 49ers,” said IDC Sports, “to invest in Leeds United, known as ‘the sleeping giant of European football.’
General view of the Leeds United crest at Elland Road
Photo by George Wood/Getty Images
“Leeds recently returned to the Premier League, where its grit and passion shone through. Under the leadership of Paraag Marathe and his team, Leeds United embodies the values we deeply identify with: ‘Marching on Together’ and ‘Side before self, every time.’
Simultaneously, IDC Network also announced a new investment in a Colombian club.
“In Latin America, we are proud to have secured an equally meaningful investment in Asociación Deportivo Cali, Colombia,” the firm continued in their post on LinkedIn.
“With a 112-year history, a tradition of never being relegated, and a reputation as a powerhouse in player development, Asociación Deportivo Cali offers enormous potential in revenue optimization and significant real estate opportunities around its stadium and training grounds.
“Our vision is to restore Deportivo Cali’s place as one of the region’s great clubs while transforming it into an institution with deep social impact.”
Kieran Maguire: Elland Road expansion key to 49ers’ financial masterplan
After what was widely perceived as a lacklustre crescendo to the transfer window, many Leeds fans were incredulous about the news that the 49ers see the club as a potential £1bn asset.
Speaking exclusively to TBR Football, Liverpool University football finance lecturer Kieran Maguire gives his analysis of how the West Yorkshire side might get there and the role of plans to expand Elland Road.
“Leeds United are the biggest club to ever be promoted from the Championship and will generate the biggest revenues of any side coming up into the Premier League.
“The Adidas deal is working really well. Red Bull are putting in big money. There have been price rises for the regular Yorkshireman, which has been lucrative too.
“Private equity sees football as a subset of the entertainment industry. They see the benefits from dynamic pricing, which is the next battleground for fans. That is only going to head one way. We’re seeing FIFA do it now.
“We’re going to see a partitioning of football. There will be the clubs that are sufficiently big enough brands in their own right to attract a broader audience than the local community, and that is where the focus of private equity will be.
Updated chart showing the matchday incomes and stadium capacities of top English clubs
Matchday income and stadium capacities chart Credit: Adam Williams/TBR Football/GRV Media
“You can attract a richer demographic of fans and sell ‘experiences’ in order to raise revenues. You won’t be going to a football match anymore, it will be an ‘experience’.
“The changes to Elland Road will be focused on that. Is the expansion good news for prospective Leeds season ticket holders? No, probably not, because the new seats will be targeting a higher-value demographic. Leeds will sell out regardless, so it’s about increasing the yield per fan.”