Paraag Marathe - Welcome to Leeds

[andrewjohnsmith]

Yes but they're a V C in the sports business who have made a strategic decision to focus on football.
It's like buying a retail franchise. You make no money by owning 1 store. You must buy multiple, vertically integrate and get cost savings by scaling. That's when profit grows.

I know people don't like corporate finance talk when it comes to our game and our club, but its the model that works in the 21st century.

I would rather be owned by the 49ers and Red Bull than the Saudis.

I'm not sure the vertical (horizontal?) integration idea works across football clubs. There are some resources you can share, particularly at the business level or in scouting. But what's so unusual about football is that it's player contracts that are by far the biggest expense. And you can't really integrate those.

Probably the biggest benefit would be a competitive edge. Teams share scouting and training resources. Teams have unspoken agreements when it comes to transfers and loans. I'm sure there are many other advantages. But, as I mentioned, with player contracts being the biggest expense, I don't think there's much economic advantage to owning multiple clubs. But I'm willing to hear arguments to the contrary.

[malcolmw]

I'm not sure the vertical (horizontal?) integration idea works across football clubs. There are some resources you can share, particularly at the business level or in scouting. But what's so unusual about football is that it's player contracts that are by far the biggest expense. And you can't really integrate those.

Probably the biggest benefit would be a competitive edge. Teams share scouting and training resources. Teams have unspoken agreements when it comes to transfers and loans. I'm sure there are many other advantages. But, as I mentioned, with player contracts being the biggest expense, I don't think there's much economic advantage to owning multiple clubs. But I'm willing to hear arguments to the contrary.

Your point is valid about the differences in the industry. But as you say in your second paragraph, there are resources that can be shared and leveraged in negotiating. I wouldn't be surprised, for example, if we see Rangers running out in Adidas strip at some point (or Leeds in Castore?).
There are a lot of line items on the expense side that can be reduced, which in fact then allow for greater investment in the squad.

Manchester United are a prime example of a club that clearly has drifted in terms of cost management. So now they have huge costs to bear on the "direct" side - player costs, and the "indirect" side - ancillary and admin costs. Clearly their Income Statement is in serious trouble at this point - and it's telling on the field.
The downward spiral now is hard to stop.

I think we're entering an era where clubs are going to have to manage off field costs much more tightly.
The people and systems needed for that can be made more efficient and easier to deploy when owners have "multiple assets".

We do have evidence from the past couple of years (and their track record in the US, I think) that the 49ers are pretty astute at overseeing the Financials, to manage their assets.
I wonder if that's why Everton's owners are trying to poach Kinnear??

[Cjay]

Your point is valid about the differences in the industry. But as you say in your second paragraph, there are resources that can be shared and leveraged in negotiating. I wouldn't be surprised, for example, if we see Rangers running out in Adidas strip at some point (or Leeds in Castore?).
There are a lot of line items on the expense side that can be reduced, which in fact then allow for greater investment in the squad.

Manchester United are a prime example of a club that clearly has drifted in terms of cost management. So now they have huge costs to bear on the "direct" side - player costs, and the "indirect" side - ancillary and admin costs. Clearly their Income Statement is in serious trouble at this point - and it's telling on the field.
The downward spiral now is hard to stop.

I think we're entering an era where clubs are going to have to manage off field costs much more tightly.
The people and systems needed for that can be made more efficient and easier to deploy when owners have "multiple assets".

We do have evidence from the past couple of years (and their track record in the US, I think) that the 49ers are pretty astute at overseeing the Financials, to manage their assets.
I wonder if that's why Everton's owners are trying to poach Kinnear??

Football is notoriously expensive though and especially in the early years Premier League clubs are very reliant on ownership finance.

Even teams like Brighton and Leicester have had nearly £500million just of ownership funding.

I'm sure they are very clever people but when you aren't using your own money are they going to have the sort of funds we need?

It could take hundreds of millions of pounds of investment just to survive.

Then Rangers need money and so on and so forth.

I've never understood the end game here as I've said before (I bow to those who know more).

But to me unless they intend on minimal investment and hoping for the best I don't see how they expect to make a profit on us never mind buying Rangers as well.

How do you become a millionaire? Be a billionaire and buy a football club.

[Jammy 07]

Football is notoriously expensive though and especially in the early years Premier League clubs are very reliant on ownership finance.

Even teams like Brighton and Leicester have had nearly £500million just of ownership funding.

I'm sure they are very clever people but when you aren't using your own money are they going to have the sort of funds we need?

It could take hundreds of millions of pounds of investment just to survive.

Then Rangers need money and so on and so forth.

I've never understood the end game here as I've said before (I bow to those who know more).

But to me unless they intend on minimal investment and hoping for the best I don't see how they expect to make a profit on us never mind buying Rangers as well.

How do you become a millionaire? Be a billionaire and buy a football club.

Sir John Hall was probably one of the first owners who realised that the massive growth in football clubs revenues would lead to increased asset value and subsequently made a very nice profit from his sale of Newcastle. However he sold way too early and could have netted an extra few hundred million had he retained his majority ownership for longer.

That's the dilemma for the 49ers but they will almost certainly make a profit because in their opinion they acquired us undervalued and when you consider the players sales since their 100% acquisition they'd be correct in that judgement. Also the fact they brought in Red Bull as small investors (at a share price profit) will have ticked many boxes with regards to all the other investors who've been on board since the beginning.

[malcolmw]

Football is notoriously expensive though and especially in the early years Premier League clubs are very reliant on ownership finance.

Even teams like Brighton and Leicester have had nearly £500million just of ownership funding.

I'm sure they are very clever people but when you aren't using your own money are they going to have the sort of funds we need?

It could take hundreds of millions of pounds of investment just to survive.

Then Rangers need money and so on and so forth.

I've never understood the end game here as I've said before (I bow to those who know more).

But to me unless they intend on minimal investment and hoping for the best I don't see how they expect to make a profit on us never mind buying Rangers as well.

How do you become a millionaire? Be a billionaire and buy a football club.

It is indeed an expensive business cjay, you're right. I think their strategy is not only to use other people's money - build a consortium of investors - but also to buy clubs at a low or lower point in their value potential - both us and Rangers would fit that.
I doubt they have any illusions about what it will take to keep Leeds in the PL and what investment it will take over the long haul - including stadium expansion/modernization.
Paraag has been doing this for 25 years, so I think he does have the smarts.

Put it this way, I think they're the best ownership option we've had in decades for rebuilding. (Mind you, that's a pretty low bar ).

[weasel]

I do think that there is still massive potential for the 49ers to make money from the club and this is mainly down to them being American. Soccer is growing quickly in America and there is a huge market to be tapped into especially if they can sell tv rights to subscribers just to watch a certain club, i.e. Leeds. We have seen the popularity of Wrexham and with all respect to them they are tiny compared to us in terms of the potential market appeal. Let's say the 49ers sell tv rights to watch us to 1m US viewers at £10 each per month. A decent deal, the subscribers get to see every match live, all the training stuff, club interviews etc. That alone brings in £120m per year and really there is little outlay - and the more subscribers the more profit per subscriber they make as the infrastructure is in place whether there was 1 viewer or 50m viewers.

Subscriber packages I think is where football is heading. Teams like Man U, LIverpool etc want a far bigger slice of the pie than they get now. They have far more global reach than the Birghtons and Bournemouths so don't want a tv deal where each club gets the same. Our owners too would love for it to happen too. We are a global club. Sure we have had less appeal in the last few years but the potnetial is there and as this website shows we have fans from all over the world and a global fanbase ready to be exploited erm provided for.

[1964white]

Decision on signings this summer.

https://www.yorkshireeveningpost.co.uk/ ... rs-5158184

Makes sense!

[The Subhuman]

Decision on signings this summer.

https://www.yorkshireeveningpost.co.uk/ ... rs-5158184

Makes sense!

Doesn't seem to be the article you're trying to link... Might have been taken down?

[1964white]

Doesn't seem to be the article you're trying to link... Might have been taken down?

https://www.yorkshireeveningpost.co.uk/ ... rs-5158184

The relevant link.

I don't know what happen there.

[The Subhuman]

https://www.yorkshireeveningpost.co.uk/ ... rs-5158184

The relevant link.

I don't know what happen there.

Thanks

[Cjay]

No clue who he Is.

If he's gone straight on the board must be a fair old chunk of cash?

Seems a nice bloke, lot of charity stuff.

He runs a foundation set up in his Uncles name who was a Greek Shipping billionaire estimated to be worth £9-10billion when he died.

But his own net worth no idea

[Cjay]

I've never even heard of them

How many random people own parts of us.

[weasel]

I've never even heard of them

How many random people own parts of us.

I wonder how much you have to own of the club to be considered an investor? Or whether some investors even actually own anything of the club or just have their money in and get returns based on how we do.

[The Subhuman]

I've never even heard of them

How many random people own parts of us.

We'll have cartels investing in premiership football clubs soon....

[Cjay]

I wonder how much you have to own of the club to be considered an investor? Or whether some investors even actually own anything of the club or just have their money in and get returns based on how we do.

I assume the individuals on the board must be significant investors?

The new Greek bloke, Peter Lowy.

VC funds always use other people's money but these are seemingly a very wealthy group in their own right but whose money are they using?

[Cjay]

Dear Leeds United supporters,
With the season now finished, following an extraordinary effort by everybody connected to this great football club, I am immensely proud to have achieved our goal of securing another season in the Premier League.
While this year brought memorable highs and difficult moments, Daniel and the squad delivered a special campaign. In a league where promoted clubs usually struggle, survival in our first season back is a significant accomplishment. We are also especially proud to have recorded our first league win at Old Trafford since 1981 and to have reached our first FA Cup semi-final since 1987.
This season, clearly one of the determining factors for the squad was your energy at Elland Road - we collected 32 points on home soil. We will need that energy next season to ensure it remains a fortress.
I said last year that the road ahead would not be easy - that is still true. History shows that the second season in the Premier League can be just as, if not more, challenging as the first. We remain ambitious but measured and deliberate, understanding that it will take three long-fought seasons before we can truly operate like an established Premier League side.

This summer, instead of Profit and Sustainability Rules (PSR), the Squad Cost Ratio (SCR) will impact our transfer market approach. As our accounts reflect, we spent every penny possible, as promised, to earn promotion and keep the club in the Premier League. Our approach to the transfer market will once again be strategic and disciplined to comply with regulations while striving further to improve, and players will both arrive and depart as a result.
Remaining in the Premier League allows us to keep building, both on and off the pitch. With our global supporter base, commercial growth opportunities, stadium expansion project, and a world-class football operation, we believe strongly in the future for Leeds United.


I want to thank Daniel, the players, and staff of Leeds United who have worked tirelessly throughout the season to achieve our objective. I would also like to thank you, our supporters, for your tremendous support throughout the campaign that made Elland Road one of the best environments in global football.
There is still important work ahead, and I am incredibly confident about what comes next for Leeds United.

[Cjay]

A self sustaining Premier League club with the stadium upgrade would likely give them their exit plan by 2030 (something The Athletic have hinted at before).

[Johnthewhite]

A smooth response to Daniel Farke's comments of two weeks ago. Basically saying we don't have alot to spend apart from sales we can make.
Is that going to be enough to appease Daniel

[Barlow Boy]

Tempering expectations a little with the 3 year comment, but he’s right. One step at a time.

[Cjay]

A smooth response to Daniel Farke's comments of two weeks ago. Basically saying we don't have alot to spend apart from sales we can make.
Is that going to be enough to appease Daniel

Would be ungrateful if it didn't?

He was massively backed in the Championship and given over £100mil last summer.

They showed patience with him a few times as well when many owners wouldn't.

Surely better for him to try again with us than risk his reputation elsewhere?