Leeds SAFE

lad12

Leeds expect the takeover to safeguard their future to be completed on Friday.
The £30m takeover will see Leeds Utd plc wound up and affairs transferred to Leeds Utd AFC after the consortium struck a deal with the major creditors.

Under the deal, the creditors have agreed to accept about 20p in the pound percentage on total debts believed to total £100m.

Leeds-based businessman Gerald Krasner will chair a six-man board which will include former player Peter Lorimer.


Former managers Peter Reid and David O'Leary also agreed to a big reduction in the monies they are owed by the club.

The safeguarding of Leeds' security comes after weeks of intense negotiations.

Under the deal, £20m will go to major creditors, including bondholders M&G, Teachers and MetLife and Gerling Insurance, who agreed to settle for a percentage of the monies owed by the cash-strapped club.

Background to Leeds Utd's financial crisis

Another £10m will be used as working capital, while further negotiations have led to agreements to restrusture debts to other creditors such as the Inland Revenue.

The consortium has pledged they will not sell the club's ground Elland Road, although part of their Thorp Arch training centre may be sold under an agreement with the previous regime.

In addition to former playing hero Lorimer, the new board will include David Richmond, son of former Bradford chairman Geoffrey.

Geoffrey Richmond acted as an advisor to the consortium and is expected to be retained in a consultative capacity.

Current chairman Trevor Birch, who kept Leeds afloat and staved off the threat of administration, is said to be leaving the club.


Would Gordon Strachan want to come out of retirement?

Some Leeds fans have expressed reservations about the takeover, and claim the mathematics do not add up.

But with Leeds immediate future safeguarded other backers are thought to be ready to come forward.

Leeds are anchored at the foot of the Premiership table and are battling to avoid the drop into the Nationwide League.

Regardless of where Leeds play next season, the new board is thought to be keen to try and tempt former Southampton boss Gordon Strachan out of retirement.

Current caretaker manager Eddie Gray would be found a role within the club as a reward for his work during the club's difficult period.

BBC SPORT

Big Ears

Good to hear but i can only see Leeds becoming an average first division team in the future .

Gillie

They still might stay up!

leeroybrown

Leeds are still only 2 points adrift Wolves and Pompey and 4 adrift Leicester. They also have some good players more than capable of winning them the necessary matches IF they start playing to their potential.

It'll be interesting to see how the players react to the rescue package and if it will bring about an improvement in their play.

If they stay up this year they may recover some of their past prowess but if they go down then it'll be trouble.

mr_angry

Sounds to me like they still can't pay off their £100m debts altogether. If they then get relegated (which I believe they will) then they are doomed. I'd be surprised if Leeds Utd. FC survive at all.

Seaneh

They don't have to pay off thier debt all at once.
As long as thier creditors agree to re-structure thier debts, and they meet thier payments each month, they will be fine.
I think they will be fine, and it's a good thing too, Leeds UTD isn't just a club, it's a massive employer and it's an essential part of the city of leeds, drawing in a lot of visitors every year.