Starting With Real Madrid

Gao Shen had once seen a question in his previous life: What would you do if you had a billion?

The answers varied, but they were mostly jokes.

Some said they would deposit it in the bank, earn interest, and spend their time playing video games, enjoying life as a "pay-to-win" player. Others said they'd use their iPhones to crack walnuts every day. Some joked about using the interest to buy a house and get married...

Clearly, these people didn't really have a billion. They were just talking nonsense.

But the problem Gao Shen now faced was very real.

He actually had a billion.

Adam Lallana was sold for £25 million, Schneiderlin for £20 million, Paulinho for £20 million, Benteke also for £20 million, Clyne for £15 million, Courtois for £20 million, and Bolasie for £10 million.

In total, Leeds United earned £130 million in this summer's transfer window.

Compared to the €200–300 million that clubs like Atlético Madrid, Ajax, and Monaco would rake in over the coming years, Leeds United's earnings weren't that astonishing. The key was whether they could maintain consistent output.

Clubs like Monaco, Ajax, and Porto could sell players for €100–200 million each year, which was genuinely impressive.

By comparison, Leeds United was just getting started.

However, Gao Shen now faced a dilemma.

How should this money be spent?

He couldn't just throw it in the bank to earn interest or buy a new phone every day to crack walnuts, right?

…

"To be honest, this is the first time I've ever handled this much money," Gao Shen said with a wry smile in the conference room at Elland Road, addressing the club's core senior management.

The others smiled and nodded.

In fact, they had been waiting for Gao Shen to make a decision.

No one had expected these players to sell for so much money.

Just a year ago, Gao Shen had bought Leeds United for less than £50 million. Now, they'd generated £130 million in sales over one summer. If someone else said that out loud, who would believe them?

Of course, the money hadn't all arrived yet.

Real Madrid paid cash, which Gao Shen hadn't expected.

According to Lucas, they didn't even try to negotiate.

Leeds United had originally intended to raise the asking price, expecting Real Madrid to haggle, but surprisingly, they agreed outright.

Reportedly, it was Florentino who made the final call.

The price was a big premium for Courtois, but overall it was still a great deal.

The players Leeds United sold this summer all had one thing in common: they were young.

Youth was their greatest asset, and their wages were relatively low.

In other words, after these players were acquired, the wage burden on their new clubs wasn't significant—smaller even than some existing squad members—so those clubs were more willing to pay a premium transfer fee.

Another key factor: installments.

Most transfers were paid over one to two years.

For example, Adam Lallana, Benteke, and Clyne were all paid in five installments over two years.

So even though Liverpool claimed they spent £60 million on the three players, they had only paid £12 million as a down payment.

So, are these big clubs really so free-spending?

This was one of the transfer market's little secrets, but for Leeds United, it wasn't a big issue.

If the club really needed cash, they could take those Liverpool contracts to a bank and get loans at very low interest rates.

That's why modern club operations are more about financial strategy and capital management.

By comparison, Leeds United still had to operate within its means.

…

Gao Shen wasn't the type of owner who had never seen serious money.

In fact, apart from spending his own funds to buy Leeds United, he hadn't really invested much personal capital into the club.

Partly due to strict wage control, and partly because of last season's player sales.

This had also been a requirement from Su Qing and Lucas.

Public funds and personal funds had to remain clearly separated.

If Gao Shen kept pouring in money recklessly, how would that be any different from rich owners like Abramovich?

To put it bluntly, professional football is a bottomless pit. Throwing money in endlessly is a thankless endeavor.

This season, Leeds United had been promoted to the Premier League, so wage increases and contract renewals were inevitable. Add to that the ticket refunds promised last year. According to calculations by Su Qing, Lucas, and the finance department, the cost would exceed £3 million.

The main reason was that the largest number of low-priced tickets had a refund rate of just 30%.

For Leeds United, the £3 million figure was manageable. In fact, it wasn't an actual cash payout but more of a discount on ticket renewals.

In other words, more than £3 million would be offset from the club's season ticket revenue.

The largest investment this summer, however, was in youth development.

A comprehensive youth training system was being established from scratch. Leeds United was recruiting heavily from surrounding areas, and this required significant spending. There were also staff, coaches, venues, facilities—none of it came cheap.

In total, £10 million wasn't even enough.

That didn't include the second phase of the Big Data Center project, continued investment in the methodology department, and further upgrades to the Thorp Arch training base—all major expenditures.

In the end, if the £130 million in transfer income wasn't counted, Leeds United would barely break even in the Premier League, because of the substantial investments in infrastructure and personnel.

In other words, what the club truly had available was the £130 million in transfer income. But even that wasn't fully in hand—only about £40 million had actually been received.

The rest would come over the next one to two years.

But Su Qing and Lucas both believed that after promotion, Leeds United would expand its sponsorship and revenue channels. They expected the club's participation in the Premier League to significantly boost commercial income, especially in shirt sponsorship.

The new kit sponsor for the coming season was Adidas, under a five-year deal worth £6 million per year.

That was already quite good, especially considering Leeds United's historic brand and fan base. Including jersey sale commissions, the deal was solid.

Of course, it still couldn't compare to the tens of millions earned by the elite clubs.

That was just reality—Leeds was a newly promoted side.

However, Leeds United had negotiated a very favorable jersey revenue split—40%.

That was the highest in the Premier League. Even many top clubs only had 20%, and some as low as 10%.

The logic was clear. Big clubs earn high sponsorship fees but get lower revenue splits. Leeds United's sponsorship fee was modest, but its jersey sales were booming, so they negotiated a higher share. That was normal.

Now, with Adidas taking over as kit supplier, Leeds had launched its new kits. Due to materials and brand positioning, Adidas jerseys were more expensive. The fan version cost £55, and the player version £100. That was for short sleeves. Long sleeves cost more.

According to initial estimates, Leeds United could sell at least 150,000 jerseys. That would bring in more than £3 million from jersey sales alone.

A clear improvement over last season.

Historically, Leeds United kits had always sold well.

Few people knew that Leeds United was the first club in professional football to sell replica shirts. That was back in 1973, when a jersey cost just £5. Now, the price was ten times higher.

Among Premier League clubs, Leeds kits weren't expensive. For example, Manchester United's kits sold for £65.

Leeds had a long-standing tradition of fan engagement and reasonably priced jerseys. Even when in the lower leagues, their shirt sales consistently ranked in the top ten in England.

Now that they were back in the Premier League, they might set a new record.

But compared to clubs like Real Madrid, Manchester United, or Chelsea, who could easily sell one or two million units, Leeds United still had a long way to go.

For now, the goal was simply to survive in the Premier League and unlock that potential step by step.

…

With over £40 million in cash on hand and nearly £100 million due in the next two years, Leeds United needed to start planning how to use these funds.

They couldn't just park it in the bank and collect interest.

The team was cash-poor and needed money for everything.

There was already a consensus among club executives about the need to build a new training facility.

Thorp Arch had been renovated, but it was still outdated.

When Gao Shen had first taken over the club, he was already clear: a new stadium wasn't essential, but a new training center was.

As soon as he brought it up, everyone in the room turned to him, eyes filled with both anticipation and concern.

That was a lot of money.

Was Gao Shen really willing to spend it?

But if Leeds United wanted to establish itself long-term, a top-tier training center was a must.

Gao Shen understood what they were thinking. He turned to his wife and gave her a small nod.

Su Qing smiled brightly. "We've already discussed this. All of the surplus from this summer and next season will go toward building a new training base. Not just a training base, but also a dedicated stadium for the youth teams."

At present, Leeds United only had two youth squads, and all matches were played at Thorp Arch. In the future, each age group would need its own team. There would be a serious shortage of training and match venues. Right now, they could barely squeeze two or three age groups into the facilities.

After hearing this, Lucas and the others were visibly excited. Their eyes were full of admiration as they looked at Gao Shen.

Spending over £100 million without hesitation.

Of course, according to Su Qing's plan, the new training complex would be owned by a private company under Gao Shen and Su Qing. Leeds United would lease it. Financial mechanisms would be used to recover the construction costs through the club.

Essentially, this was a disguised withdrawal of funds from the club.

But no one would care.

Whether fans or management, what mattered most was seeing a world-class training center exclusively for Leeds United. Who owned it didn't matter.

And besides, the entire club operated with transparency.

"This time, we plan to invite Norman Foster to design it," Gao Shen announced with a smile.

(To be continued.)

***

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