Yorkshire Evening Post 30/5/12
Chief football writer Phil Hay looks at the implications of Leeds United’s takeover talks announcement.
Ken Bates has a stock response to anyone who approaches him with promises of meaningful investment in Leeds United.
“We have two golden rules,” he said last year, 24 hours after revealing himself as the club’s new owner. “We say ‘the identity of a proposed investor, proof of funds in a London bank.’ That usually gets rid of most of them.”
In the past decade, rumours of impending investment at Leeds have often proved to be no more than speculation but the fact that an interested party were present at Elland Road six days ago suggests the individuals concerned have already cleared the first hurdle facing them.
The group, described as North American, took a tour of United’s stadium and their training ground at Thorp Arch last Thursday as whispers of a buy-out began to circulate in the city around them.
It was an intriguing end to a concerning week in which doubts surfaced about the club’s ability to fund either the number or the quality of signings planned by Neil Warnock for his first full season as United manager.
Warnock made his first summer signing on May 4, paying £500,000 to land Jason Pearce from Portsmouth, but his attempt to follow up that deal with a £400,000 purchase of Joel Ward was frustrated by Leeds’ failure to put up the fee.
Ward slipped through Warnock’s fingers on Monday, joining Crystal Palace instead, and other proposed signings are under threat. The YEP understands that Warnock has been similarly unable to finalise an agreement to bring Derby County midfielder Paul Green – another of his targets – to Elland Road on a free transfer.
The lack of progress in the transfer market, at a time when Warnock hoped his squad would begin taking shape, pointed to two possibilities: a shortage of available cash at Elland Road or the potential arrival of new owners.
Bates, United’s chairman and majority shareholder, has rarely given any indication of a willingness to relinquish control but confirmation of discussions in Leeds last week has given the idea some credence.
A statement from Leeds read: “The club can confirm that talks are taking place regarding investment for the long-term future.
“The club has always publicly stated that it would welcome potential investment but has maintained a belief whereby the quality of the investor is the most important factor in terms of the long-term development of Leeds United.”
The YEP has been told of a second consortium with an interest in purchasing Leeds, though the group are not believed to have made contact with United.
A source involved in the consortium, which has links to both England and the Middle East, admitted they were “some distance away” from being ready to table a bid for Leeds and said investment in another English club was also under consideration.
Leeds have long been seen as one of the more attractive investments in English football, despite the fact that the club do not own either Elland Road or their Thorp Arch training complex and pay more than £2million annually to lease both properties.
The club have made pre-tax profits totalling more than £10million since the summer of 2007 and posted a gain of £3.5million at the end of the 2010-11 financial year.
United’s rental agreement for Elland Road includes a buy-back clause which, according to the club’s most recent set of accounts, would cost £14.85million to exercise.
Richard Cramer, a specialist in sports law with Front Row Legal in Leeds, told the YEP: “My objective view is that Leeds as a club are a good investment but anyone who plans to get heavily involved at Elland Road is going to need serious money. They won’t get the club at a snip.
“In the first instance, I can’t see the club being cheap to buy and there’s a lot more to this than simply taking over. After that you’ve got the cost of investing in infrastructure – dealing with the stadium and the training ground for example – and the cost of building a squad good enough to take Leeds into the Premier League.
“Even then you’ve got the pressure to continue on the up and up. I don’t see the supporters accepting what happened to Burnley or Blackpool – where you go up for a season and come straight down with parachute payments to play with. The club are an attractive proposition, provided you’ve got the right financial credentials and the right vision.”
United expect to raise transfer funds through the summer sale of transfer-listed midfielder Adam Clayton, and the club stand to receive compensation if winger Aidan White turns down a new contract and leaves Elland Road.
Leeds are also likely to listen to offers for Ross McCormack, who has rejected the club’s offer of a new deal and is out of contract in 12 months’ time, but cash received through substantial outside investment could spectacularly change the landscape facing Warnock.
United underwent a change of ownership as recently as April of last year when Bates announced that he was buying a 72.85 per cent stake in the club from previous owners, Forward Sports Fund (FSF).
Leeds were heading for a seventh-placed finish in the Championship at the time but the club struggled to make a sustained challenge for promotion this season, ending the campaign in 14th place.
Their income in the past 12 months is likely to have been affected by a notable drop in attendances and the club are committed to using season-ticket money from both the 2012-13 and 2013-14 campaigns to repay a loan taken out to fund the recent development of the East Stand at Elland Road.
Cramer said: “If I was advising anyone about investment in English football then I’d certainly suggest they look at Leeds United.
“But you’d need to show the colour of your money to get involved there and it seems clear to me that investment is needed at Elland Road. You don’t get the impression that there’s a huge amount of cash available.”
Wednesday, May 30, 2012
Quality of investors is crucial, say Leeds United
Yorkshire Post 30/5/12
By Ian Appleyard
LEEDS United have confirmed that talks are taking place with potential investors following a season of unrest at Elland Road. Chairman Ken Bates, who took control at Leeds seven years ago, has been the subject of protests from a section of supporters who question his ambitions for the club.
The identity of the potential investors has not been revealed but Yorkshire Post sources say that one is based in North America. It is understood at least three groups have declared an interest in Leeds with a Chicago-based would-be investor – thought to have inspected the club’s facilities last week – believed to be the frontrunner.
However, Maple Leaf Sports and Entertainment (MLSE) – the owners of Canadian ice hockey team Toronto Maple Leafs – denied any involvement via Twitter yesterday, saying: “We love the enthusiasm of #LUFC Fans! However to repeat our response from last week – there is no truth to the rumours.”
And Jon Pritchett, chief executive of Chicago-based Club 9 Sports, said there had been ‘no discussions whatsoever’ between his company and Leeds.
Club 9 made an unsuccessful bid to acquire a major stake in Sheffield Wednesday two years ago and have subsequently been linked with both Rangers and Tranmere Rovers.
A spokesman for Leeds United said: “Further to media reports on Tuesday, the club can confirm that talks are taking place regarding investment for the long-term future.
“The club has always publicly stated it would welcome potential investment but has maintained a belief...the quality of the investor is the most important factor in terms of the long-term development of Leeds United. No further comment will be made at this stage.”
The Leeds United Supporters’ Trust (LUST), whose board members are currently banned from buying tickets at Elland Road, have been seeking out new investors for the last three months.
Accounts published recently showed that Leeds made a profit of £10m in the last four years but, although sizeable amounts have been spent on ground development, the team lost several top players and finished only 14th in this season’s Championship.
New manager Neil Warnock has already seen one of his top targets – Portsmouth defender Joel Ward – slip from his grasp to join Crystal Palace in a £400,000 deal. Highly-rated Scottish internationals Robert Snodgrass and Ross McCormack, meanwhile, have yet to sign new deals and may yet leave.
A Trust spokesman said: “We want change at the club whether with Ken Bates or with someone else. We want a better relationship with the club and a good team. We want people in charge who share our ambition for the club. If this is what comes about as a result of these talks, we will be very excited.”
The Trust is aware several parties have expressed interest and say at least one bid is on the table.
“In February we responded to Ken Bates’s suggestion that we ‘put our money where our mouth is’ by asking any potential investors who shared the aims and ambitions of our members and of our Vision Statement to contact the Trust with a view to working together to take Mr Bates up on his offer. Our members increasingly tell us that they feel a change of ownership would be the best route towards positive change at Leeds United.
“On Friday, we invited our members and Leeds fans everywhere to let us know their thoughts about the summer so far and we received hundreds of emails.
“The clear and resounding message from our members was that they have completely lost faith in the current Leeds United board’s ability to deliver a successful football club.
“Following the failure to meet Neil Warnock’s target of signing a new group of players before his holiday deadline and Robert Snodgrass’s comments about past promises not being met, and after last season – which saw players sold, failure on the pitch, and the season ticket income used to finance corporate facilities rather than new players – our members firmly believe that new owners and a new board are required at Leeds United to match the ambition of the fans, the players and the manager.
“We developed a presentation so interested parties could see how working with LUST could help them and have been in contact with a number of people to explore ways of bringing about change for the better at Elland Road.
“We have spoken to two groups who are interested in buying Leeds. At this stage, it is not possible for us to go into details as, with a firm offer on the table, we would not want to jeopardise any current negotiations.
“We are sure that the news of discussions around the sale of the club will be warmly welcomed by our members and make disaffected supporters feel more optimistic about the future,” he added.
LUST is a Supporters’ Trust affiliated with Supporters Direct and has almost 5,500 members.
By Ian Appleyard
LEEDS United have confirmed that talks are taking place with potential investors following a season of unrest at Elland Road. Chairman Ken Bates, who took control at Leeds seven years ago, has been the subject of protests from a section of supporters who question his ambitions for the club.
The identity of the potential investors has not been revealed but Yorkshire Post sources say that one is based in North America. It is understood at least three groups have declared an interest in Leeds with a Chicago-based would-be investor – thought to have inspected the club’s facilities last week – believed to be the frontrunner.
However, Maple Leaf Sports and Entertainment (MLSE) – the owners of Canadian ice hockey team Toronto Maple Leafs – denied any involvement via Twitter yesterday, saying: “We love the enthusiasm of #LUFC Fans! However to repeat our response from last week – there is no truth to the rumours.”
And Jon Pritchett, chief executive of Chicago-based Club 9 Sports, said there had been ‘no discussions whatsoever’ between his company and Leeds.
Club 9 made an unsuccessful bid to acquire a major stake in Sheffield Wednesday two years ago and have subsequently been linked with both Rangers and Tranmere Rovers.
A spokesman for Leeds United said: “Further to media reports on Tuesday, the club can confirm that talks are taking place regarding investment for the long-term future.
“The club has always publicly stated it would welcome potential investment but has maintained a belief...the quality of the investor is the most important factor in terms of the long-term development of Leeds United. No further comment will be made at this stage.”
The Leeds United Supporters’ Trust (LUST), whose board members are currently banned from buying tickets at Elland Road, have been seeking out new investors for the last three months.
Accounts published recently showed that Leeds made a profit of £10m in the last four years but, although sizeable amounts have been spent on ground development, the team lost several top players and finished only 14th in this season’s Championship.
New manager Neil Warnock has already seen one of his top targets – Portsmouth defender Joel Ward – slip from his grasp to join Crystal Palace in a £400,000 deal. Highly-rated Scottish internationals Robert Snodgrass and Ross McCormack, meanwhile, have yet to sign new deals and may yet leave.
A Trust spokesman said: “We want change at the club whether with Ken Bates or with someone else. We want a better relationship with the club and a good team. We want people in charge who share our ambition for the club. If this is what comes about as a result of these talks, we will be very excited.”
The Trust is aware several parties have expressed interest and say at least one bid is on the table.
“In February we responded to Ken Bates’s suggestion that we ‘put our money where our mouth is’ by asking any potential investors who shared the aims and ambitions of our members and of our Vision Statement to contact the Trust with a view to working together to take Mr Bates up on his offer. Our members increasingly tell us that they feel a change of ownership would be the best route towards positive change at Leeds United.
“On Friday, we invited our members and Leeds fans everywhere to let us know their thoughts about the summer so far and we received hundreds of emails.
“The clear and resounding message from our members was that they have completely lost faith in the current Leeds United board’s ability to deliver a successful football club.
“Following the failure to meet Neil Warnock’s target of signing a new group of players before his holiday deadline and Robert Snodgrass’s comments about past promises not being met, and after last season – which saw players sold, failure on the pitch, and the season ticket income used to finance corporate facilities rather than new players – our members firmly believe that new owners and a new board are required at Leeds United to match the ambition of the fans, the players and the manager.
“We developed a presentation so interested parties could see how working with LUST could help them and have been in contact with a number of people to explore ways of bringing about change for the better at Elland Road.
“We have spoken to two groups who are interested in buying Leeds. At this stage, it is not possible for us to go into details as, with a firm offer on the table, we would not want to jeopardise any current negotiations.
“We are sure that the news of discussions around the sale of the club will be warmly welcomed by our members and make disaffected supporters feel more optimistic about the future,” he added.
LUST is a Supporters’ Trust affiliated with Supporters Direct and has almost 5,500 members.
Leeds United takeover talks: US bidders make their move for Whites
Yorkshire Evening Post 30/5/12
By Phil Hay
An American group are behind advanced plans for a takeover of Leeds United, the Yorkshire Evening Post can confirm. The mystery consortium – believed to be based in Chicago – are looking to secure a major shareholding in Leeds after travelling to England for talks last week.
The YEP understands that members of the group were shown around Leeds’ stadium and Thorp Arch training ground on Thursday with a view to pushing through a buy-out of the Championship side.
United chairman Ken Bates currently holds a controlling interest in Leeds having acquired 72.85 per cent of the club’s shares last year.
Bates purchased the stake for an undisclosed sum from former owners Forward Sports Fund (FSF), buying FSF’s interest through another offshore firm, Outro Limited.
United are actively seeking investment, however, and have attracted serious interest from across the Atlantic, leading to meetings in Leeds in the past seven days.
The identity of the American group is as yet unconfirmed but Chicago firm Club 9 Sports, who tried unsuccessfully to buy Sheffield Wednesday in 2010, are not involved in the bidding, with chief executive Jon Pritchett saying the company “have had no discussion whatsoever about Leeds United.”
In a short statement, Leeds said: “The club can confirm that talks are taking place regarding investment for the long-term future.
“The club has always publicly stated that it would welcome potential investment but has maintained a belief whereby the but has maintained a belief whereby the quality of the investor is the most important factor in terms of the long-term development of Leeds United.”
Leeds have been financially stable since their insolvency in 2007 but the need for an injection of cash at Elland Road appeared to be underlined by the club’s recent failure to tie up the signing of Joel Ward from Portsmouth.
The 22-year-old was primed for a move to Leeds after holding discussions with manager Neil Warnock three weeks ago but Ward signed for Crystal Palace on Monday with United unable or unwilling to pay the £400,000 fee set by Portsmouth’s administrators. Leeds are under growing pressure to back Warnock in the transfer market having finished 14th in the Championship this term and seen their average home attendance fall by more than 4,000.
Warnock has so far been able to secure only one new signing - centre-back Jason Pearce from Portsmouth - and the struggle to land Ward raised serious doubts about the current board’s ability to supply Warnock with the funds needed to compete for promotion next season.
But the prospect of major investment has now come to light with business figures in Leeds believing any serious offer of investment would constitute an attempt to take full control of the club, rather than the purchase of a minority stake.
Maple Leaf Sports and Entertainment (MLSE), a Canadian company who own ice hockey club Toronto Maple Leafs and Major League Soccer team Toronto FC, were initially said to be behind last week’s approach but they like Club 9 Sports have denied any interest in buying Leeds.
Beyond the American approach, the YEP is aware of one other party tentatively interested in taking charge at Elland Road. The group has connections to both England and Dubai but no official approach has been made by them.
Bates, 80, has been chairman of Leeds since 2005 when he fronted a takeover from the board headed by ex-chairman Gerald Krasner. Having remained in charge after United’s administration in 2007, he bought FSF’s shares in April of last year amid growing questions about the ownership structure at Elland Road.
By Phil Hay
An American group are behind advanced plans for a takeover of Leeds United, the Yorkshire Evening Post can confirm. The mystery consortium – believed to be based in Chicago – are looking to secure a major shareholding in Leeds after travelling to England for talks last week.
The YEP understands that members of the group were shown around Leeds’ stadium and Thorp Arch training ground on Thursday with a view to pushing through a buy-out of the Championship side.
United chairman Ken Bates currently holds a controlling interest in Leeds having acquired 72.85 per cent of the club’s shares last year.
Bates purchased the stake for an undisclosed sum from former owners Forward Sports Fund (FSF), buying FSF’s interest through another offshore firm, Outro Limited.
United are actively seeking investment, however, and have attracted serious interest from across the Atlantic, leading to meetings in Leeds in the past seven days.
The identity of the American group is as yet unconfirmed but Chicago firm Club 9 Sports, who tried unsuccessfully to buy Sheffield Wednesday in 2010, are not involved in the bidding, with chief executive Jon Pritchett saying the company “have had no discussion whatsoever about Leeds United.”
In a short statement, Leeds said: “The club can confirm that talks are taking place regarding investment for the long-term future.
“The club has always publicly stated that it would welcome potential investment but has maintained a belief whereby the but has maintained a belief whereby the quality of the investor is the most important factor in terms of the long-term development of Leeds United.”
Leeds have been financially stable since their insolvency in 2007 but the need for an injection of cash at Elland Road appeared to be underlined by the club’s recent failure to tie up the signing of Joel Ward from Portsmouth.
The 22-year-old was primed for a move to Leeds after holding discussions with manager Neil Warnock three weeks ago but Ward signed for Crystal Palace on Monday with United unable or unwilling to pay the £400,000 fee set by Portsmouth’s administrators. Leeds are under growing pressure to back Warnock in the transfer market having finished 14th in the Championship this term and seen their average home attendance fall by more than 4,000.
Warnock has so far been able to secure only one new signing - centre-back Jason Pearce from Portsmouth - and the struggle to land Ward raised serious doubts about the current board’s ability to supply Warnock with the funds needed to compete for promotion next season.
But the prospect of major investment has now come to light with business figures in Leeds believing any serious offer of investment would constitute an attempt to take full control of the club, rather than the purchase of a minority stake.
Maple Leaf Sports and Entertainment (MLSE), a Canadian company who own ice hockey club Toronto Maple Leafs and Major League Soccer team Toronto FC, were initially said to be behind last week’s approach but they like Club 9 Sports have denied any interest in buying Leeds.
Beyond the American approach, the YEP is aware of one other party tentatively interested in taking charge at Elland Road. The group has connections to both England and Dubai but no official approach has been made by them.
Bates, 80, has been chairman of Leeds since 2005 when he fronted a takeover from the board headed by ex-chairman Gerald Krasner. Having remained in charge after United’s administration in 2007, he bought FSF’s shares in April of last year amid growing questions about the ownership structure at Elland Road.
Bates puts whopping £80m price tag on LUFC?
To Ell And Back 30/5/12
According to the not-so reliable Daily Mail, Ken Bates has told a mystery Canadian consortium to stump up a massive £80m if they wish to buy the club.
The Mail report that Bates has been offered a more modest £40m, however due to the complexities as to who actually owns the ground and Thorp Arch etc it is unlikely they will up the ante.
It appears that our beloved owner/chairman has realised his time is up at ER and the more he can make out of handing over the reigns to a new owner, the better for him.
Bates endured a season of conflict with supporters over perceived lack of investment in the squad over stadium redevelopments. However the ultimate embarrassment came last week when Captain Robert Snodgrass openly questioned Bates' ambition on the field and indicated this would be a massive factor in deciding his own future at the club.
Bates however has insisted that Leeds went over budget on transfer spend, Including signing on fees and wages last season following the dismissal of Simon Grayson. However a Watford player I was talking to after their 2-0 win in March alleged that he would have been a Leeds player "had it not been for your chairman".
Joel Ward, another reported target, has joined Crystal Palace for £400,000 this week with the claim that Leeds were unable to raise the capital to pay for the transfer fee up front needed by his then club Portsmouth. This set alarm bells ringing that either Leeds were facing another period of financial trauma or the chairman was heading towards an uneasy stand-off with boss Neil Warnock.
The weekend saw rumours of a takeover begin on social networking sites and the net in general.
Whilst Bates should be rightfully be credited for stepping in back in January 2005 and saving us from oblivion, his austerity measures are hard to argue against particularly after the "boom and bust" years of Ridsdale. However our Championship status now is a far cry from the rumoured £37,000 a week lavished on Seth Johnson and £65,000 on Mark Viduka. Having seen some of our best players move to lesser Championship clubs or Norwich there is a feeling we are not competitive on the wages front anymore.
Surely the biggest marketing draw for the hospitality packages will be a team who are worth watching who have a genuine chance of promotion, not a lower mid-table side like last season who punched above it's weight and collapsed after Christmas?
Let's hope that a comfortable retirement is imminent for Ken and he hands the club over to sensible owners with realistic and genuine ambitions.
According to the not-so reliable Daily Mail, Ken Bates has told a mystery Canadian consortium to stump up a massive £80m if they wish to buy the club.
The Mail report that Bates has been offered a more modest £40m, however due to the complexities as to who actually owns the ground and Thorp Arch etc it is unlikely they will up the ante.
It appears that our beloved owner/chairman has realised his time is up at ER and the more he can make out of handing over the reigns to a new owner, the better for him.
Bates endured a season of conflict with supporters over perceived lack of investment in the squad over stadium redevelopments. However the ultimate embarrassment came last week when Captain Robert Snodgrass openly questioned Bates' ambition on the field and indicated this would be a massive factor in deciding his own future at the club.
Bates however has insisted that Leeds went over budget on transfer spend, Including signing on fees and wages last season following the dismissal of Simon Grayson. However a Watford player I was talking to after their 2-0 win in March alleged that he would have been a Leeds player "had it not been for your chairman".
Joel Ward, another reported target, has joined Crystal Palace for £400,000 this week with the claim that Leeds were unable to raise the capital to pay for the transfer fee up front needed by his then club Portsmouth. This set alarm bells ringing that either Leeds were facing another period of financial trauma or the chairman was heading towards an uneasy stand-off with boss Neil Warnock.
The weekend saw rumours of a takeover begin on social networking sites and the net in general.
Whilst Bates should be rightfully be credited for stepping in back in January 2005 and saving us from oblivion, his austerity measures are hard to argue against particularly after the "boom and bust" years of Ridsdale. However our Championship status now is a far cry from the rumoured £37,000 a week lavished on Seth Johnson and £65,000 on Mark Viduka. Having seen some of our best players move to lesser Championship clubs or Norwich there is a feeling we are not competitive on the wages front anymore.
Surely the biggest marketing draw for the hospitality packages will be a team who are worth watching who have a genuine chance of promotion, not a lower mid-table side like last season who punched above it's weight and collapsed after Christmas?
Let's hope that a comfortable retirement is imminent for Ken and he hands the club over to sensible owners with realistic and genuine ambitions.
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