SWR: Chapter 711/712

Chapter 711: Another Road to the Wealth
Everyone says professional football is a money-burning game.

Whenever people talk about club spending, the conversation immediately focuses on the astronomical transfer fees for star players.

That's certainly true.

But in reality, not all clubs spend money that way.

For the vast majority of professional clubs, their biggest expenditure is not on signing players.

If you carefully examine the financial reports of top clubs, you'll find that salaries make up the largest share of expenditure, often exceeding 80 percent.

At Real Madrid, Florentino Pérez has worked hard to control the wage structure and keep it within healthy limits. This is what allows the club to invest heavily in the transfer market year after year.

And salary structures don't just apply to players. They also cover coaching staff and club employees.

The coaching staff, for instance, includes those brought in by the first-team manager, but also consists of other team coaches, youth coaches, doctors, analysts, scouts, and specialists in various roles.

Even then, that's just the visible part of the organization. The club employs far more people behind the scenes.

For example, chefs, cleaners, security staff, and others. Even the youth academy must provide qualified teachers and tutors to help young players with their studies. These are the largest group working at any training base.

At Elland Road, there are also numerous staff involved in stadium maintenance, as well as administrative personnel and matchday service workers, many of whom are part-time.

Together, they form a very large team and create a significant number of jobs.

If a club plays in the top flight and maintains decent attendance, it can attract tens of thousands of fans every matchday. This flow of people and their spending power brings enormous commercial value, and the number of supporting businesses and jobs created around the stadium is equally impressive.

According to UK statistics, the Premier League creates 20,000 full-time jobs across the country each year.

And that only counts full-time positions. If part-time roles were included, the figure would be even higher.

Behind all of this is a club constantly burning money.

Because in Europe, human resources are the most expensive cost.

It's no exaggeration to say that as soon as you open your eyes in the morning, you see piles of cash being burned.

…

"I've made a preliminary estimate. We'll need at least two million pounds to invest in the hardware. Once renovated, the operating cost of the training base will at least double," Lucas said, looking at Gao Shen with some hesitation.

Unlike direct investments like transfer fees, salary expenditures are the most important costs a club must control.

This is why many teams opt not to sign certain players—doing so would disrupt their wage structure.

Doubling the training base's operating costs would significantly increase the pressure on the club's wage budget.

Gao Shen frowned slightly but nodded. "We must invest this money. I'd rather cut back in other areas than skimp on this. The training base and youth development are our core competitive strengths."

As a head coach, no one understood the importance of this better than Gao Shen.

In the past, when Italian owner Massimo Cellino took over Leeds United, he fired the laundry staff and made players wash their own kits, dismissed the chefs and had players bring their own meals, and let go of most of the staff at the training base.

These moves may have seemed like cost-cutting, but they were not sustainable.

In fact, Leeds United performed even worse during those years.

The players are the club's core assets. High-level training is the only way to ensure top performance on the pitch. Cutting logistics and backroom support is shortsighted and damaging.

After seeing Gao Shen's determination, Su Qing thought for a moment and said, "Richard Cramer told me that Elland Road and Thorp Arch were sold for just £4.2 million. Even adding in the land from the old Fullerton Park training ground, I still think we can try to bargain down the price further."

The greatest value of the Fullerton Park site was its location in the city center.

Twenty million pounds may be the market valuation, but it doesn't necessarily reflect the transaction price.

Just like Elland Road and Thorp Arch were sold for only £4.2 million.

"I recently asked someone to do some research. It turns out Leeds United's kit sales are quite strong, better than some Premier League teams," Lucas added.

"Really?" Gao Shen asked with interest.

"According to the data, when Leeds United were promoted to the Championship last season, they sold over 100,000 shirts. Even in the Premier League, that would rank in the top ten. It shows the strong purchasing power of the fanbase."

That wasn't surprising. Leeds is one of the UK's most economically active cities.

"The current Championship broadcasting fee is very low, about £50,000 per match. Over a season, it adds up to just over a million. Including ranking bonuses and other revenues, it's acceptable."

"We'll try to secure a shirt sponsor and front-of-shirt advertising. I'm confident our revenue will improve significantly."

The biggest problem at Leeds United right now is that Ken Bates, the majority shareholder, has essentially given up. As a result, the club has fallen behind commercially. The current shirt sponsor is a betting company shared by multiple Championship clubs, so the revenue is minimal.

Of course, Championship income is still limited.

For example, the per-match broadcasting fee in the Premier League is at least ten times higher. Add in prize money and other revenue streams, and TV income alone can multiply a club's total income several times over.

That's why any club with ambition wants to reach the Premier League.

Gao Shen nodded repeatedly as he listened. Fernando Lucas had not let him down. He then turned to Rodolfo Borrell, who had been quiet.

Sensing Gao Shen's gaze, Borrell gave a wry smile.

"I know things are tough right now, and the financial pressure is enormous. But whenever I speak up, it's usually about spending money, so…"

Everyone laughed.

Youth development is costly.

"Go ahead. I'm mentally prepared. I can handle it," Gao Shen encouraged.

Borrell thought for a moment and said, "I've looked into it. Right now, the youth team only has eleven players. Sometimes, we can't even field a full starting lineup for U23 matches. So I suggest we start by rebuilding the U23 and U18 teams. Once that's stable, we can expand when the club reaches the Premier League and has more financial resources."

Just operating two age groups requires significant investment.

Borrell's plan was well thought out—pragmatic and cautious.

Gao Shen considered it and felt that this was indeed the only viable path.

Don't think Leeds United's situation is particularly bad.

In fact, after a deeper investigation, many second-division clubs in Europe's top leagues are worse off. Most are just scraping by.

"Everyone, I believe we're all clear on the situation. We're taking over a club that's almost starting from zero. This will be a brand-new challenge for us."

Su Qing, Lucas, and Borrell all nodded in agreement.

"I want to make one thing clear. I'm eager to get the team promoted to the Premier League, but I also hope everyone understands that laying a solid foundation is crucial. There's no contradiction between promotion and long-term development. Getting promoted will greatly increase our income. Building a foundation will steadily improve our competitiveness."

"If we want to stay in the Premier League, we must have a solid foundation. That foundation is our baseline. The training base, youth academy, scouting network, and support staff—these are all part of it."

This would be a very different path from Manchester City.

Manchester City's approach was to get results quickly, open up the situation fast, and build the foundation later—requiring huge investment.

But Leeds United couldn't do that. They had to move forward step by step.

Of course, Gao Shen himself was Leeds United's shortcut on this journey.

He would fully leverage his experience as a transmigrator and his connections in European football to provide the club with the best possible support. The goal was to gain promotion to the Premier League quickly and secure a stable foothold.

But all of this would only be possible with a strong foundation.

…

After discussing the current state of Leeds United, the conversation turned to the next key task—due diligence.

The purpose of due diligence was to gain a full understanding of the club's operations and potential.

This meant reviewing every employment contract—not only for players, but for all employees.

Every tax bill, lease agreement, intellectual property right, transfer contract, sponsorship deal, trade agreement, and more needed to be thoroughly examined.

They also needed to fully understand the club's debts and liabilities.

All in all, it was a massive and complex process.

Su Qing had emphasized this from the beginning. Having worked in a ministry, she knew well that risks rarely present themselves openly, they hide in the details.

Due diligence not only protected Gao Shen, but also served as a pressure tactic on Ken Bates and other shareholders.

"Richard Cramer said it'll take at least two months. Only one of the top-tier law firms in can finish that quickly. If we used another firm, even his own, it would take more than six months," Su Qing reported.

Gao Shen calculated the time. It was now mid-March. Two months meant May.

"That works. We need to push forward," Gao Shen said.

He wanted to take over in June and begin summer transfer business.

Otherwise, it might be too late and another year would go to waste.

"In the coming months, I'll be busy with Manchester City's matches and affairs. I'll leave the Leeds United negotiations to you. If it gets too much, we can have Fernando resign early to assist."

"No problem for me," Lucas readily agreed.

Transitioning from a scout and analyst to club CEO was a major new challenge for him.

Su Qing also understood the responsibilities she now carried.

(To be continued.)

Chapter 712: Advanced Disciple

In Gao Shen's previous life, many Chinese companies acquired European football clubs, but most of them ended in embarrassing failure and huge financial losses.

As a football fan, Gao Shen's first reaction was: these rich guys are just cash cows—loaded, but clueless.

There was nothing wrong with that assessment, but it raised a deeper question: how were they being taken advantage of?

How were the fat sheep getting fleeced?

Each of these wealthy investors was savvy in business and a master of financial maneuvering, so why did they fall into these traps?

It's not like they became stupid the moment they stepped outside of China.

Nor could it be that they threw around tens of millions without doing their homework.

As for asset transfers and shady dealings, Gao Shen didn't dare say they never happened, but at least on the surface, many of these investors genuinely suffered huge losses.

Take West Bromwich Albion, for example.

Before the Chinese acquisition, the Premier League club had been profitable for three consecutive seasons and had a stable league position. There were no signs of relegation. Judging by the purchase price, it looked like a quality investment by any standard.

But not long after the Chinese consortium took over, West Brom were relegated.

A large sum of money had been invested, yet the club went down. It made no sense.

The problem was in the management.

According to later reports, after acquiring the club, the Chinese investors fully handed over decision-making to professional executives, following the principle of letting professionals do professional work. But this led to a power struggle within the board. The executives dismissed the club's long-serving manager, which destabilized the team.

Then came a rushed managerial appointment that failed to produce results, ultimately causing relegation.

One criticism often heard is: amateurs leading professionals.

But in this case, even the so-called professionals failed to deliver.

The truth is, every situation must be analyzed individually. Context and specifics matter.

…

Aside from West Brom, there was another Chinese-owned club worth mentioning: Southampton.

This was a more sophisticated example of capital operation.

Before and after the Chinese acquisition, Southampton followed two very different strategies.

Before the takeover, the Saints had a buy-low, sell-high approach. They clearly understood their position in the league, and the entire management structure worked in sync with this identity. The team performed well, players were developed and sold at peak value. They didn't hesitate to cash in.

Once a player fetched a good price, they'd be sold. Then the club would reinvest in other high-quality but low-cost players.

This model worked smoothly for years before the Chinese took over.

Everyone noticed the pattern. Whether it was the team's core, top scorer, or main playmaker—if they had value, they were sold. Even head coaches were replaced when needed. From Pochettino to Ronald Koeman, the club made bold moves, yet performance remained stable or even improved.

But after the Chinese acquisition, things changed dramatically. The team plummeted from mid-table stability to relegation battles.

If you look closely, you'll see that for several years after the takeover, the Saints stopped selling players.

They just spent money.

This was a fundamental shift in business strategy.

No one knows the full reasoning behind it, but the dramatic change after the Chinese consortium took over clearly wasn't a coincidence. It reflected a failure in operations and in how the club's leadership positioned it within the league.

The takeaway is clear: whether the capital is Chinese or foreign, whenever someone acquires a European club, one issue is inevitable—positioning.

The professional football league system is like a pyramid. Every club must know where it stands.

Operate according to your level. That's what professionalism means.

Once you've found your place, you need to build a management system that runs smoothly.

The team is just the face of the operation. What drives true competitiveness is not just the eleven players on the pitch, but the entire structure behind them.

Only when this machine functions efficiently can the club succeed on the pitch.

Just like pre-acquisition Southampton—despite selling stars and changing coaches, they kept moving forward.

Why?

Because their system worked.

Sell a player? No problem. The scouts had already lined up a quality, affordable replacement.

Change the manager? No problem. The technical director had already sourced the right candidate to step in.

In the league, they stayed pragmatic, aware of their limits and realistic in approach. Against weaker teams, they played attacking football. Against stronger ones, they stayed compact and countered. There was no shame in that.

This may sound like common sense, but in reality, this kind of self-awareness and positioning is extremely rare—whether in individuals, organizations, or companies.

Look across Europe. How many clubs truly understand this?

Even a giant like Juventus, after a few difficult years, couldn't resist trying to be too ambitious—and ended up losing everything they had built.

…

Since deciding to acquire Leeds United, Gao Shen had been discussing it regularly with Su Qing.

As a top graduate from an elite university, Su Qing was undoubtedly a genius. She had deep insight, picked up concepts quickly, and could extrapolate from one detail to grasp the whole picture.

Through their conversations, the positioning of Leeds United became crystal clear.

Relegation survival.

Staying in the Premier League. And from that foundation, helping players perform and increase in value—then selling them at the right price.

"Sarri has been with me for three years. I know his coaching style and ability very well. I'll build a team around him, help him get promoted to the Premier League, and raise the market value of our players. Then we can reinvest in the training base, stadium upgrades, and our youth system."

Gao Shen only shared thoughts like this when alone with Su Qing.

Because they were brutally realistic.

This is professional football.

Just like when Wenger sold Anelka, and the money was used to buy Henry and build the Colney training ground.

Whether you're managing a club or running a company, you need warmth and care—but you also need financial pragmatism.

"Are you sure this will work?" Su Qing didn't doubt Gao Shen's ability.

If Gao Shen were the coach himself, she'd be fully confident. But building a team around Sarri—was that truly realistic?

"Don't worry. This isn't a difficult task for me," Gao Shen said confidently.

Seeing his unwavering confidence, Su Qing nodded. "Alright. I'll start pushing Ken Bates harder. I have a feeling that old man is getting desperate to sell."

"You told me before that he's well-connected and resourceful. Let him use those connections. Maybe he can bring us some benefits. At the very least, we should try to drive down the price."

If Leeds United is managed well, it can bring enormous benefits to the city and the surrounding region.

It's not just a cultural icon. It creates real jobs and economic growth.

Such cases always require strong government backing—whether in China or Europe.

Su Qing understood this better than anyone. That's why Gao Shen was comfortable letting her handle it.

…

During the international break in late March, the Champions League quarterfinal draw was announced.

Manchester City drew Bayern Munich of the Bundesliga.

Interestingly, Bayern were having a poor domestic season, sitting fourth in the league—twelve points behind leaders Dortmund. Although Van Gaal had taken them to the quarterfinals, his job remained under threat.

There were even reports that if Bayern were eliminated from the Champions League, Van Gaal would be sacked.

Coincidentally, both Jürgen Klopp of Dortmund and Thomas Tuchel of Mainz—who were currently competing for top-four spots in the Bundesliga—had close ties to Gao Shen.

Both had traveled to Italy specifically to attend Gao Shen's advanced coaching lectures.

This only added to Gao Shen's rising fame in European football.

Almost everyone now agreed: Gao Shen, along with Guardiola, Klopp, Tuchel, and others, formed the leading group of young coaches shaping the future of European football.

This was also why Gao Shen was happy Sarri had chosen to stay.

With Gao Shen's reputation, it wouldn't have been difficult for Sarri to find another job. Gao Shen could have easily recommended him to a Serie A club.

But Sarri chose to stay. Most likely, he wanted to challenge himself.

More importantly, Gao Shen had promised to build a squad tailored to him. That was what truly attracted him.

The whole football world knew one thing—Gao Shen's eye for talent was spot-on.

In the other quarterfinal ties: Napoli faced Schalke 04, Manchester United faced Chelsea, and Barcelona drew Shakhtar Donetsk.

Interestingly, Allegri was considered half a disciple of Gao Shen. Not only was his football philosophy shaped by Gao Shen, but the Napoli lineup he inherited had Gao Shen's fingerprints all over it. Now, Allegri had taken that team into the Champions League quarterfinals.

Today, Gao Shen's disciples were spread across Europe's top leagues. In the future, more and more coaches who embraced Gao Shen's football philosophy would emerge, further solidifying his influence across European and global football.

…

During the international break, Leeds United officially announced that they had signed an exclusivity agreement with a foreign buyer and had hired the UK's largest law firm, Clifford Chance, to conduct due diligence.

Once this news broke, it caused an immediate stir in European football.

Leeds United had been in decline for years. Even after returning to the Championship, the club had shown little sign of revival.

Now, the tide had seemingly turned, and the club was on the verge of a foreign takeover.

Some media even claimed the buyers were the Qatari consortium that had previously failed to acquire Manchester United.

For a time, media and fans worldwide flooded the headlines with this story, speculating that Leeds United could become the next footballing powerhouse.

Reading those reports, Gao Shen, Su Qing, and the others behind the scenes couldn't help but laugh.

How on earth did they look like nouveau riche?

(To be continued.)