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NFL’s 49ers purchase minority stake in Leeds United

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One of England’s most famous clubs is receiving investment and strategic business connections from one of the NFL’s most famous brands.

Leeds United and the San Francisco 49ers announced Thursday that 49ers Enterprises, an investment arm of the 49ers ownership, has purchased a minority stake in the Championship club. Multiple reports state that the 49ers now own 10-15 percent of the club, but current Leeds chairman Andrea Radrizzani remains the majority owner.

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As part of the deal, 49ers President Paraag Marathe gets a seat on the Leeds United board of directors. Per Leeds, the money invested will stay with the club and be used for the first team, as Leeds looks again to make its way back to the Premier League in next season’s campaign.

An American ownership group investing in England is nothing new, but to identify and purchase a stake in a club with history and a decent chance at making it to the Premier League is impressive. In addition, the York Family, who owns the 49ers, has a net worth in the billions, which could help fund Leeds’ push back into the Premier League.

For the 49ers, this is also a savvy business decision. By investing low in a club in the Championship, they hope that they can experience the financial windfall of playing in the Premier League. This season, clubs made a combined $3.2 billion (with a capital B) thanks to revenue sharing, international and domestic TV rights, and other sponsorship deals.

With even the relegated sides taking home nine figures in revenues from the league, who wouldn’t want to invest and take a cut of that?

Now, only time will tell how long it is before the 49ers influence helps – or hinders, based on the 49ers current state of affairs in the U.S. – Leeds reach the pinnacle of English football.