Guardian Unlimited Football | News | Leeds to sell Elland Road
Leeds to sell Elland Road
Negotiations between Leeds United and Sebastian Sainsbury halted as club admits Elland Road will be sold
Press Association
Friday November 12, 2004
Leeds today confirmed negotiations for the takeover of the American-backed consortium led by Sebastian Sainsbury have ended - and that Elland Road is to be sold under a sale and lease back deal.
Leeds chairman Gerald Krasner also revealed that the club's board was in "advanced discussions" with a local consortium.
Leeds called a press conference at Elland Road this afternoon to clarify the latest developments in the Sainsbury takeover saga.
The current Leeds board had set 1pm today as the deadline for the £25m takeover deal to go through, after a joint announcement by the club and American company Nova Financial Partners earlier in the week that proof of funding had been established.
Leeds' urgency for completion was prompted by the need to pay back the latest instalment of the loan owed by the current board to Jack Petchey, or trigger a £2m penalty clause.
Krasner said: "Leeds United can confirm that current negotiations for a takeover of the club have ceased with Nova Financial Partners.
"We can also confirm that today we are in the final stages of completing the sale and lease back of Elland Road."
Krasner, who said the sale of Elland Road should be finalised later today, would not say how much the deal was worth but confirmed that it meant the loan owed by the board to Jack Petchey would be paid off in full.
The Leeds board, fearing that the Nova deal might not go through, have also been in talks with a local consortium believed to be headed by local businessman Norman Stubbs.
Krasner added: "We are in advanced discussions with a local consortium which we hope to finish over the coming weeks."
Krasner said the Leeds board "would have been foolish not to have given time for Nova to come up with the substantial funds being mentioned" and he sought to explain why the proposed takeover deal with Nova Financial Partners had collapsed.
He said: "On Tuesday we received a copy fax showing substantial funds were available in a HSBC bank account. This was accompanied by a covering letter stating that the funds were available for use in a takeover bid for the club. The name of the account holder had been blanked out on this document and Nova's solicitors are still awaiting verification of this document.
"On Thursday we were informed that Nova had opened a Barclays account in the UK and that funds would be transferred from that into their solicitors' account by close of business. This transaction has not taken place.
"On that basis the Leeds United board has been advised through their solicitors that negotiations (with Nova) have now ceased."
Leeds to sell Elland Road
Negotiations between Leeds United and Sebastian Sainsbury halted as club admits Elland Road will be sold
Press Association
Friday November 12, 2004
Leeds today confirmed negotiations for the takeover of the American-backed consortium led by Sebastian Sainsbury have ended - and that Elland Road is to be sold under a sale and lease back deal.
Leeds chairman Gerald Krasner also revealed that the club's board was in "advanced discussions" with a local consortium.
Leeds called a press conference at Elland Road this afternoon to clarify the latest developments in the Sainsbury takeover saga.
The current Leeds board had set 1pm today as the deadline for the £25m takeover deal to go through, after a joint announcement by the club and American company Nova Financial Partners earlier in the week that proof of funding had been established.
Leeds' urgency for completion was prompted by the need to pay back the latest instalment of the loan owed by the current board to Jack Petchey, or trigger a £2m penalty clause.
Krasner said: "Leeds United can confirm that current negotiations for a takeover of the club have ceased with Nova Financial Partners.
"We can also confirm that today we are in the final stages of completing the sale and lease back of Elland Road."
Krasner, who said the sale of Elland Road should be finalised later today, would not say how much the deal was worth but confirmed that it meant the loan owed by the board to Jack Petchey would be paid off in full.
The Leeds board, fearing that the Nova deal might not go through, have also been in talks with a local consortium believed to be headed by local businessman Norman Stubbs.
Krasner added: "We are in advanced discussions with a local consortium which we hope to finish over the coming weeks."
Krasner said the Leeds board "would have been foolish not to have given time for Nova to come up with the substantial funds being mentioned" and he sought to explain why the proposed takeover deal with Nova Financial Partners had collapsed.
He said: "On Tuesday we received a copy fax showing substantial funds were available in a HSBC bank account. This was accompanied by a covering letter stating that the funds were available for use in a takeover bid for the club. The name of the account holder had been blanked out on this document and Nova's solicitors are still awaiting verification of this document.
"On Thursday we were informed that Nova had opened a Barclays account in the UK and that funds would be transferred from that into their solicitors' account by close of business. This transaction has not taken place.
"On that basis the Leeds United board has been advised through their solicitors that negotiations (with Nova) have now ceased."
