Leeds United journalist Joe Donnohue has given his thoughts on the finances of the club following recent investment from the minority owners.
Leeds recently announced that 49ers Enterprises, who own a minority share in the club, had increased their ownership stake in the Elland Road outfit to 44% as they continue to improve and increase their footprint, having initially taken an interest in them in 2018.
Speaking about the situation on the latest edition of The Blue, White and Yellow podcast, Donnohue provided further clarity on what the recent move was about, before hinting at how that money was likely to be spent, noting that fans shouldn’t necessarily expect it to lead to an influx in spending on transfers:
“The cash injection – or the capital injection is probably the more appropriate term for it – that’s come into the club as a result of the share issue and the transfer of shares, typically, that sort of injection is used for infrastructure development, rather than going on more volatile expenses, such as your wages or your transfer fees.
“I think it’d be quite unlikely that we see that sum of money that’s come in from the purchase of more of a holding in the club, I think it’d be unlikely that that will be spent on transfers in January, especially because we know what the club’s stance towards January transfers are.”
TIF Thoughts on Joe Donnohue’s comments about Leeds United and 49ers Enterprises…
Do you think that the 49ers will only benefit Leeds?
Yes, everything is positive
No, something will go wrong
If Donnohue’s assessment of the situation is right, whilst it might not necessarily lead to more investment in the playing side of the team straight away, the news should still be greeted with plenty of enthusiasm from Leeds fans.
Because investment in other areas like infrastructure will still be important to the club moving forward. The club have already got plans in place for an expansion of Elland Road, which will result in an increase in matchday revenue and can bring in additional funds for players that way instead.
So as long as someone is going to pay for it – and with a reported net worth of $4bn (£3bn), the owners of the 49ers certainly have the funds to do so – it shouldn’t matter whether the funding is happening directly or indirectly. As long as it all goes into the club one way or another and they can expand that way, it should be celebrated.