Leeds United are finally back in the Premier League for just their fourth season in the last 22 years – and owners 49ers Enterprises are keen to make a U-turn on the strategy that Andrea Radrizzani once employed.
Leeds were one of the biggest clubs in England at the turn of the century, registering five consecutive top-five finishes in the Premier League from 1997 to 2002. However, overspending and borrowing led them to financial ruin, eventually ending up in a three-year stint in League One.
It’s been a long road back from there, including ten consecutive seasons in the Championship before eventual promotion in 2020.
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And now that they have new owners in the 49ers Enterprises, they are aiming to reverse the decision made by former owner Andrea Radrizzani, who TBR Football’s financial chief Adam Williams states formerly structured payment deals differently.
Leeds United v Wolverhampton Wanderers - Premier League
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Leeds United chiefs 49ers Enterprises are looking to stamp their own mark on the club’s finances
Leeds were promoted last season after winning the Championship with 100 points, forging a return to the Premier League after a two-year absence.
That saw them sign the likes of Noah Okafor, Anton Stach and Lucas Perri among others, and currently sitting 16th in the Premier League, their plan is working so far.
But a wider eye must be kept on the financial picture at hand. And TBR Football’s Adam Williams has stated that with Leeds having a nine-figure transfer debt at their last count after the fallout of Radrizzani’s reign, that will look to be reduced in the coming seasons if they are to remain a regular Premier League side.
Williams said: “Leeds’ transfer debt was £142m at the last count. Granted, we’re going back to the end of the 2023-24 financial year there, but it gives you a sense of how they have chosen to structure payments in the past [under Andrea Radrizzani].
“The 49ers have said they want to move away from that model. At the same time, they were due £69m in instalments, which is pretty healthy. But on a net basis, you can see that they are pretty highly geared.
“We don’t know the terms of the Raphinha, Archie Gray or Kalvin Phillips deals, but there will likely have been an element of instalment planning.
“However, that won’t necessarily change things in January because clubs can go through a creditor anyway to get the money upfront in exchange for a margin on the deal, so if cash flow was an issue at Leeds ahead of January and they wanted to do some business, they could have approached it that way.”
Leeds have brought in huge fees for their best players in recent times, but that will have been accounted for to allow them to help Daniel Farke strengthen his squad.
Daniel Farke celebrates as Leeds United beat West Ham in the Premier League
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Raphinha, Archie Gray and Kalvin Phillips deals will have strengthened this season’s squad
Raphinha has been a revelation at Barcelona ever since his move away from the club in 2022, where he joined the Catalan club for around £55million.
Archie Gray also moved to Tottenham last summer for £40million, or £30million plus Joe Rodon, whilst Manchester City signed Kalvin Phillips for £45million from the Yorkshire club in 2022.
Although that has brought in £140million in player sales, it’s unlikely that the deals will have all been lump sums.
This is why it is important for clubs to sometimes stretch deals over a number of seasons. Had Leeds received those fees up front, they will undoubtedly have strengthened their Championship squad in 2023-24 – but there is no guarantee they’d have finished above Leicester City and Ipswich Town.
Instead, they were able to strengthen ahead of last season, winning the league, and Gray’s staggered payment will have undoubtedly given them a bit more financial freedom to bolster their ranks ahead of a return to the Premier League.
Eventually, the 49ers will look to reduce any total transfer debt if Leeds stay in the division long enough, copying Brighton’s recruitment blueprint to become a regular top-half outfit. But for now, it has given them capital to thrive in the Premier League, where they sit four points clear of the drop zone.