Starting With Real Madrid

The 12/13 season was a season of complete transformation for Leeds United.

As a newly promoted team, the White Roses climbed all the way to sixth place in the Premier League, behind the champions Manchester United, Manchester City, Chelsea, Arsenal, and Tottenham Hotspur.

Next were Everton and Liverpool.

It is worth mentioning that Ferguson has retired, and Everton head coach Moyes will replace him.

Because Leeds United finished sixth, their share of Premier League broadcasting fees this season reached 54 million pounds, ranking seventh in the league after Manchester United, Manchester City, Chelsea, Arsenal, Tottenham, and Liverpool.

Liverpool's situation is somewhat special. As an established top club, although their ranking bonus was not as high as Leeds United's, they had more live broadcasts, resulting in total revenue higher than Leeds United's.

It is worth noting that the Premier League's TV revenue distribution uses a guaranteed-minimum plus commission model. Each season guarantees a certain number of broadcast matches and a base payment, then additional payments for each extra live game.

Leeds United, as a newly promoted side, did not have many live broadcasts in the first half of the season, though many were added later. Even so, it was still fewer than Liverpool's.

In terms of the live broadcast share, Leeds United received 9.2 million pounds, while Liverpool received 11.9 million pounds.

Leeds United's situation was relatively good. Take Everton as an example. Although they ranked higher than Liverpool, their live broadcast share was only the guaranteed 5.8 million pounds, so Everton's final total revenue was only 50 million pounds, 5 million pounds less than Liverpool.

Another situation was that in the final round of the Premier League, some teams' positions shifted significantly.

For example, Fulham beat Swansea 3-0, which pushed them up three places in the table. Based on the ranking bonus, they earned an extra 2.25 million pounds.

Newcastle, on the other hand, lost in the last round, dropped three places, and lost 2.25 million pounds in prize money.

Manchester United had the highest revenue in the Premier League this season, at 61.4 million pounds.

But this figure will definitely be broken next season, as the Premier League champion's revenue may even exceed 100 million pounds.

In other words, every Premier League team next season will have the chance to increase its current revenue by nearly 40 percent as long as it maintains its ranking.

Thanks to the high share of Premier League TV money, Leeds United's total revenue this season reached 110 million pounds, which ranks around 25th in European football.

This also shows the astonishing money-making ability of the Premier League as a platform.

But whether it was Gao Shen, Su Qing, or Fernando Lucas, none of them were satisfied with Leeds United's current situation.

The reason is simple. The proportion of TV revenue is too high.

…

"As we have said before, according to our plan, ideally, matchday revenue, broadcast revenue, and commercial revenue should be split three ways. That provides a good hedge against risk."

Fernando Lucas introduced the current situation of the club.

Matchday income is the most stable, generally fluctuating little. Broadcasting revenue is the least stable, affected by team performance, especially in Europe. Commercial income is relatively stable and tests the club's operational ability.

"Matchday revenue is a problem. Due to our previous commitment not to raise prices, coupled with the limited capacity of the stadium and incomplete facilities, our matchday income is much lower than other teams."

Matchday revenue is not only tickets. Merchandise sales are also a big part, but Leeds United are heavily restricted in this area.

"Broadcast revenue now accounts for half of our total, and commercial income is growing too slowly. These are the areas we will focus on. Our North American office will be set up soon, and our Asian office will also ramp up. We are striving to achieve 100 percent growth in commercial revenue next season from the current base."

Gao Shen was a little surprised when he heard this. "That is not easy."

"Yes, but we have to do it."

Lucas believes that matchday income has hit a temporary bottleneck with limited room for improvement. At most, next season brings Europa League games, but the prize money is small and the extra matches only add a little.

But can Leeds United maintain their current Premier League position?

That is the question.

Only by increasing commercial income can the club operate healthily. Otherwise, if TV revenue accounts for 70 to 80 percent like many teams, what do you have to compete with?

In fact, Leeds United's biggest commercial negotiation this season was with AXA Insurance.

Unfortunately, no sponsor is interested in Elland Road's naming rights. Otherwise, Leeds United would seriously consider selling them.

Even earning two million pounds a year would be great.

"Oh, by the way, Rodolfo, you have been to France several times. How did the talks go?" Gao Shen looked at Borrell.

Because Gao Shen had been busy with Real Madrid's matches and did not communicate in time, he knew nothing about Borrell's progress.

When he asked, Borrell immediately laughed.

"It's signed."

"What?" Gao Shen was a little surprised. "I mean Mbappé."

"Yes, it's signed." Borrell was also very excited.

"Did you really sign him?" Su Qing was very surprised.

Gao Shen often praised Mbappé in front of Su Qing, saying he was a youngster not inferior to Haaland. Did they really sign him?

"I went to France six times and did everything I could to convince Mbappé and his family. I practically became friends with them." Borrell could not help laughing.

"I really think this kid will bring surprises. Seeing him felt like when I saw Messi, it was a shock, but a different kind of shock."

Gao Shen nodded deeply and gave Borrell a thumbs up.

This was a brilliant move.

Now, Mbappé and Haaland are both at Leeds United, which makes Gao Shen look forward to the future.

Talent is still crucial in football.

Leeds United has assembled a group of extremely gifted youngsters.

Sterling, Arnold, and Rabiot were signed from Manchester City, and Mbappé was brought in from France. Of these, apart from Sterling and Rabiot who can make the first team, the others are enriching the academy and are semi-finished products needing more development.

But Leeds United's youth setup is no joke. Their results last season were very good, and this season is expected to be better.

This is inseparable from Gao Shen's large-scale investment.

Whether in software, hardware, or players, Leeds United has begun to regain the look of the former European youth powerhouse.

For example, in the first team, the 17-year-old Martial has already played in cup matches.

Leeds United's entire ecosystem is running very well now. The team dares to give young players opportunities and room to make mistakes. Once they get on the pitch, they play without fear and fight hard. That is rare.

Gao Shen also repeatedly reminded Lucas, Borrell, and the next head coach Pochettino to maintain this club culture.

Once the club becomes afraid to give youngsters chances and refuses to allow mistakes, it will be difficult to keep the team as vibrant and energetic as it is now.

That was Real Madrid's problem in the past.

…

Because of the club's huge investment in youth development, Leeds United has been scouting globally. This even became a key topic at the Premier League Chairmen's Summit, and the league reminded Leeds United to be mindful.

Of course, Leeds United paid training compensation and adhered to FA regulations.

But poaching like this is likely to cause public anger.

Is there any alternative?

In recent years, most Premier League clubs have not valued youth development or the nurturing of young players. Leeds United is different. They cultivate many youngsters every year, their academy is renowned, and naturally they attract talented kids.

For example, Andrew Robertson of Queen's Park in Scotland's fourth tier.

He performed well in the fourth tier last season. Although only 19, his displays were eye-catching.

Following Gao Shen's suggestion, Leeds United moved immediately and signed Robertson on a free, beating Scottish Premier League powerhouse Dundee United.

There is also Stuttgart U19 midfielder Kimmich. After Leeds United took a liking to him, they spoke directly to Stuttgart. When the other side was willing to sell for 500,000 euros with a 750,000 euro buyback clause, Leeds United rejected the clause and instead signed Kimmich for 1.5 million euros.

This left Stuttgart baffled.

Were Leeds United really that optimistic about Kimmich?

"I joked with them that we had more money than we could spend in the academy budget and had to rush to use it before season's end."

As soon as Borrell said this, Gao Shen and the others laughed.

Will this give the outside world the illusion that Leeds United is very rich?

But it has to be said that Leeds United is no longer what it used to be.

When they signed Paulinho for 1.5 million, they took a long time to consider it. Now it is just a matter of Borrell's decision.

Leeds United is still picking up bargains everywhere. For example, they signed Milinkovic-Savic from Serbian club Vojvodina for 300,000 euros and loaned the 18-year-old to Genk in Belgium.

This is also one of the ways Leeds United and other clubs develop young players.

Belgium does not have too many restrictions on foreign players, which makes it easier for Leeds United to operate.

Leeds United's academy staff and scouts will always monitor the players' development and keep in close contact.

In terms of local poaching, in addition to Manchester City, Leeds United originally wanted to sign Declan Rice and Mason Mount from Chelsea's academy.

Rice was released by Chelsea due to physical reasons, so signing him was simple. But Mount was one of the most valued players in Chelsea's youth setup, and he himself was unwilling to leave London, which ultimately led to Leeds United failing to land him.

Although only Declan Rice was signed, it was still a gain.

Not only that, Leeds United also signed 17-year-old Spanish youngster Rodri from Atlético Madrid's academy, beating Villarreal and others.

And everything Leeds United is doing now is preparation for the future.

This summer, the team is likely to face serious personnel losses. Leeds United must plan ahead and stock sufficient talent to prepare for next season and the coming Premier League campaigns.

Leeds United's signings share one common trait. They are young, talented, semi-finished products at low cost.

This fits perfectly with Leeds United's positioning as a star-making factory. Bring in players, develop them for a few years, then sell after they perform well.

This is Leeds United's way of survival.

(To be continued.)

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