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Leeds’ valuation is an absolute bargain despite QSI’s reluctance

This article is part of Football FanCast’s Opinion series, which provides analysis, insight and opinion on any issue within the beautiful game, from Paul Pogba’s haircuts to League Two relegation battles…

One big hurdle that stands in the way of Qatari investment into Leeds United is their valuation of the club.

It was reported last week that QSI value the Whites at between €60-80m (£51.4-68.6m).

New reports emerged this week which further confirm that the Qataris value the club lower than what Andrea Radrizzani is willing to sell it for as a source from the investment group told The Athletic “He overvalues it a little bit. Right now, there wouldn’t be anything happening quickly.”

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The article by Phil Hay also says that Radrizzani’s asking price is just north of £100m, and with QSI looking to pay more than 30 per cent less than that, it seems unlikely that a deal will be reached.

So who’s right? What is Leeds United’s actual value in this day and age?

Firstly you’ve got to look at the Yorkshire club’s sellable assets – namely the players, the stadium and the training ground.

Transfermarkt value the squad at £84.6m, and while that drops to £61.65m when you remove the loan players that’s still a huge chunk of QSI’s valuation.

Transfermarkt’s figures aren’t the most reliable either, for example, they value Kalvin Phillips at £9.9m even though we know Leeds want £30m for him.

However, for arguments sake let’s say that the £61.65m valuation for the squad is accurate.

Fortunately for us, Thorp Arch and Elland Road have both been sold in recent years. Elland Road was flogged for around £20m back in 2017, and in 2004 the training ground was auctioned off for £4.2m.

While there hasn’t been too much inflation since 2017, £4.2m in 2004 is apparently worth £6.3m in 2019, so we can use that figure as the current value of Thorp Arch.

So far, the running tally of Leeds’ sellable assets is £87.95m, but that isn’t even considering any future profits that the club may bring in if they’re promoted to the Premier League.

Last season, finishing bottom of the Premier League was worth £96m to Huddersfield Town, and with United apparently having a 69% chance of going up this season it’s only fair to add a good percentage of that to their value.

Even if you add just 20% of that figure to their valuation it’s another £19.2m, which takes the running tally up to £107.15m, and that number massively increases if Leeds get to the Premier League. That only grows every season that United manage to remain in the top-flight.

Have QSI got their valuation of Leeds United right?

Nowhere near

Nowhere near

About right

About right

Based on the fact that Leeds are likely to go up alongside the fact that Transfermarkt’s valuation of the squad is some way off where it actually should be a fee, just north of £100m for Leeds United actually looks like a massive bargain.

Consequently, QSI must think again and they shouldn’t allow their measly valuation to be a stumbling block in any potential investment.

Article title: Leeds’ valuation is an absolute bargain despite QSI’s reluctance

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