Leeds United's Championship rivals reveal pioneering finance tactic to fund summer transfer spend

The Hornets hope to raise transfer funds this summer through the take-up of shares by the club's supporters. The Times report Watford will make shares available in the form of 'digital equity' with members of the public able to buy a small stake in the club for as little as £49.76.

"Supporters will be able to invest a minimum of £49.76 for four shares, with investors also given access to tokens which — depending on the size of the investment — could lead to perks such as meeting with the owners, coaches and players and priority over tickets," the report states.

The move green-lit by Watford's ownership is the first of its kind by a major English club in the hope the club can return to the Premier League backed by new investment from the club's Vicarage Road base.

An estimate of the Hertfordshire club's wage bill placed Watford eighth in the Championship last season at approximately £15 million. Leeds' wage bill, by comparison, is expected to be considerably higher given their more recent relegation from the Premier League, but significantly reduced from the £146 million figure reported in their 2022/23 accounts.

"We are aiming to offer approximately 10% of the club at a value of £17.5million, on the basis of a valuation of £175 million. Having posted a pre-tax profit of £24.1 million for the last financial year, reported to be the highest in the EFL, we believe this is a fair valuation", a statement on Watford's official website read.

"Through this offering, fans, alongside investors will not only have the opportunity to own a share, but may also be provided tokens and other exclusive offers.

"Part of the funding will be channeled into recruitment to strengthen Tom Cleverley’s playing squad as we seek a return to the Premier League. We believe this project can form a key strand of football’s future finance, where investors and supporters alike can enjoy the fruits of the club’s future success."

Leeds recently announced a bumper sponsorship and minority stake acquisition of their own as soft-drinks conglomerate Red Bull's involvement with the club was rubber-stamped last week. The exact percentage Red Bull now own of the Elland Road club remains undisclosed but has been described as a ‘significant minority stake’.