Leeds United shareholders IDC Network’s investment in Atlético Madrid reflects a trend in football that suggests Leeds themselves could one day attract private equity ownership, says Kieran Maguire.
Speaking exclusively to Leeds United News, the University of Liverpool football finance lecturer and well-connected industry source explains that the valuations of clubs like Leeds have risen so much that private equity could now be one of the only options when 49ers Enterprises come to sell the club.
A sale is not in the 49ers’ immediate plans, but it is their ultimate ambition in order to satisfy the dozens of investors who have provided capital for the project at Elland Road and expect a chunky return.
Documents seen by Leeds United News last year suggest that the American investment arm of the San Francisco 49ers NFL franchise are targeting a valuation of £1bn, with the redevelopment of Elland Road and consolidation in the Premier League central to that masterplan.
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If and when that day comes, IDC Network will be among the financial beneficiaries.
In September last year, we broke news that IDC Sports, an off-shoot of the private equity company IDC Network, were among the investors in Leeds via 49ers Enterprises. And this week, City AM report that IDC Sports has bought a minor stake in La Liga giants and Champions League semi-finalists Atletico Madrid.
The move comes after Atletico were taken over in November by private equity titan Apollo, who bought a controlling stake from another industry bedfellow, Ares Management, who remain a minority shareholder at the Riyadh Air Metropolitano Stadium.
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As such, Leeds now belong to at least three multi-club networks:
IDC Network are invested in Leeds, Atletico and Colombian side Deportivo Cali
Red Bull own a minority stake in Leeds alongside stakes in seven other teams
49ers Enterprises own Leeds and, in collaboration with Andrew Cavanagh, Rangers
In reality, there are probably more links to other clubs, albeit more diffuse ones. The nature of private equity ownership, which is the model the 49ers employ, means that most investors stay silent, but they will probably be cross-pollination with further football clubs.
An aerial view of Elland Road, home stadium of Leeds United during the Premier League match between Leeds United and Wolverhampton Wanderers at Elland Road on October 19, 2020 in Leeds, United Kingdom. Sporting stadiums around the UK remain under strict restrictions due to the Coronavirus Pandemic as Government social distancing laws prohibit fans inside venues resulting in games being played behind closed doors.
Photo by Sam Bagnall – AMA/Getty Images
Private equity’s critics say its cold, unfeeling, hyper-analytical approach to business does not coalesce well with football. But like it or not, it is here to stay.
So, when Leeds United are eventually sold by the 49ers, are we likely to see another private equity firm enter the fold?
“As valuations increase, the pool of investors who can actually afford to buy a club the stature of Leeds United diminishes,” says Maguire, who has interviewed 49ers president Paraag Marathe on his Price of Football podcast.
“Therefore, an approach from private equity – which is a collective of investors – is one that looks increasingly likely.
“The downside is that nobody has worked out how to turn this very, very mature industry into a very, very profitable industry.”
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Leeds’ most recent financial statements, covering the 2024-25 campaign, revealed a loss of nearly £50m. The club has turned in an annual profit on just three occasions since 2010, with cumulative losses in that period approaching £300m.
“There is a polarisation of revenue between the teams who qualify for the Champions League and then the likes of Leeds who lost £28m the year they were last relegated,” says Maguire.
“The losses could have been worse if they had stayed up, because they would have then had to go and pay a load of bonuses to players. So that is the paradox.
“In my view, private equity are the most cold-eyed kind of investors and therefore aren’t suitable owners for a football club. But that certainly isn’t going to stop them.”
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