Leeds United manager Neil Warnock considers that the club’s chances of promotion to the Premier League this season have been hit by the protracted takeover talks with the club placed in a ‘straightjacket’.
Leeds United manager Neil Warnock considers that the club’s chances of promotion to the Premier League this season have been hit by the protracted takeover talks with the club placed in a ‘straightjacket’.
The bid by GFH Capital has been passed to the Football League for approval, but it appears that no deal has actually been concluded with Ken Bates. Moreover, Leeds fans are concerned about the viability of the new owners and their ability to restore the club to its former glories.
The auditors of the Bahrain-based private equity firm have cast doubt on its ability to continue as a ‘going concern’. Announcing losses of £185m, KPMG said, ‘The group’s current contractural obligations exceeded its liquid assets. [Translation: it has no cash in hand]. ‘As a result the ability of the group to meet its obligations when due depends on its ability to achieve a timely disposal of assets.’ [It will have to sell assets to pay its bills].
GFH held its hands up to lacking cash, but pointed out that it has £524m in saleable assets. That far exceeds the £44m cost of taking over Leeds United, although fire sales never bring the best returns. Having acquired the club, will GFH be prepared to splash the necessary cash in the January transfer window? To mix metaphors, Leeds fans have been through the mill and they are not out of the wood yet.
There are, however, two other bids in the offing. Little is known from one about a Saudi group, but American millionaire Preston Haskell IV has tabled a higher bid than GFH Capital and has offered to spend £10m in the January transfer window. Bates may feel, however, that he is too committed to GFH after the long drawn out negotiations.
His father, Preston Haskell III (natch) set up a successful construction company in Florida and is a minority owner of the Jacksonville Jaguars NFL team. Preston Haskell IV made his money dealing in real estate in Moscow which requires a certain toughness and initiative. Would he be a better owner of Leeds?