Simon Jordan delivers Rangers a brutal dose of reality with 'powerhouses' warning amid 49ers takeover
The former Crystal Palace owner warned that it takes more than a big fanbase and increased investment to really level up
Simon Jordan has warned Rangers AND Leeds United that they WON'T become UK powerhouses under 49ers Enterprises.
The investment arm of NFL franchise the San Francisco 49ers already own the Elland Road club and are in advanced to talks to buy Gers from Dave King and his fellow shareholders. That's lead to speculation that the Light Blues will see their spending power boosted next season and boost their chances of seriously competing with Celtic for the Premiership title.
But when talkSport host Jim White put it to Jordan than 49er Enterprises could become a major player in the UK game by owning both clubs and taking them to another level, the former Crystal Palace owner stressed that it wasn't that simple despite Leeds looking like a good bet for promotion to the top flight.
"I don't think Rangers will become a powerhouse because they are still going to operate within the confines of the Scottish Premiership, which in of itself detracts from their opportunity," he said. "Yes, they have a global support but there's only so much money you can get from putting people inside football stadiums and a bit of merchandise. The reason Manchester City, Manchester United, Arsenal and Liverpool have turnovers of £500million to £600m is because the broadcasters are paying them 40 to 50 per cent of that.
"The rest of it is coming from commercial deals and of course the fans and attendances. So Rangers are going to be better off by having people with deeper pockets, if indeed these people are going to invest, how their invest structure is going to be and what sort of control they're going to get.
"Leeds getting back to the Premier League? Well, the owners of Leeds United bought a Premier League football club. Their original deal was to be involved with a Premier League football club and to buy out Ravazzini on the basis of it being a Premier League football club. They probably got a discounted price because they dropped down into the Championship.
"But they're not set up to be a Championship football club. So going into the Premier League gives them an opportunity to perhaps a spend more money and not be any better off in the short term. Does it make them a powerhouse? No, they're a big club that want to be and I think probably should be in the elite leagues.
"They need to look at themselves for the reasons why they haven't been in the Premier League for any more than three or four seasons out of the last 20 odd. But certainly the ownership model have the opportunity to get the club that they bought, rather than. the ugly cousin that got relegated to the Championship.
When White pointed out that both clubs have a huge core support, Jordan acknowledged that but also the limited earning potential of simply having lots of fans. He added: "That's a wonderful thing and it can't be diminished, but it's not the determining factor. Ultimately that's winning on the field and catching up with the others.
"How are Leeds going to take on the same challenge as Newcastle and Aston Villa under the current configuration? How do you get from £200m a year turnover to £700m? Then only way is by winning and getting betting players. To do that you've got to spend and you can't because the current system handicaps you from doing that."