San Francisco 49ers takes 10% stake in Leeds United

The San Francisco 49ers NFL team has taken a 10 per cent stake in Leeds United, the latest foreign investor to seek a deal in the second tier of English football with the hope of eventually gaining entry to the lucrative Premier League.

The American football team’s partnership and investment arm, 49ers Enterprises, will take the stake in the Yorkshire-based club owned by Italian entrepreneur Andrea Radrizzani.

The groups declined to comment on the details of the transaction or the football club’s valuation, but people close to the transaction said the US team had bought just over 10 per cent. Mr Radrizzani acquired Leeds in 2017 for Aser Group Holding, his investment business, and has estimated he has spent £100m on the club since taking control.

Leeds plays in the Championship, the second tier of English football. The money from 49ers Enterprises will go towards investment in its first-team squad as the club looks to acquire players who can maintain a push for promotion to the Premier League next season.

“This exciting partnership builds on the foundations we have laid down at the club in the last 12 months and we can assure supporters that the funds invested will go towards improving the team on the pitch,” said Mr Radrizzani.

The Italian is targeting a return to the top division within five years. If it can gain promotion, the club would could earn about £100m a year from the Premier League’s media rights deals. The majority of clubs in the Championship make a loss, as many teams spend huge sums on players as they vie with each other for promotion.

In recent years a number of overseas investors have acquired or invested in Championship clubs, which typically come at far lower valuations than their Premier League counterparts.

The two sides promoted so far this season both have international owners. Wolverhampton Wanderers was acquired by China’s Fosun Group for £45m in 2016, while Cardiff City is owned by the Malaysian businessman Vincent Tan.

On Saturday Aston Villa, owned by Chinese businessman Tony Xia, and Fulham, owned by Pakistani-American billionaire Shahid Khan, will compete in a play-off for the last available promotion spot to next season’s Premier League — a fixture considered the most lucrative match in world football.

Paraag Marathe, president of 49ers Enterprises and executive vice-president of football operations at the 49ers, has joined the board at Leeds. The controlling owner of 49ers Enterprises is Jed York, chief executive of the 49ers NFL franchise.

Aser and 49ers Enterprises also announced a “strategic partnership”, in which the two groups will collaborate on sporting ventures and seek investments in start-ups in the sport and media industries.

Leeds last won the title in 1992 and dropped out of the top level in 2004 after building up large debts. It subsequently went into administration but has climbed back to the Championship where it finished in 13th position this season, well outside the promotion places.