Sports Network 8/11/04
Leeds Finance Director clashes with Sainsbury
By Rich Baggott - November 8 2004Leeds Club Direcotor clashed live on Radio Aire with Sebastion Sainsbury, frontman for the Nova Financial Consortium that are currently in the process of trying the buy the club
Shortly before kick off, Radio Aire held an exclusive chat with Sebastian Sainsbury, the front man of the Nova Financial Group consortium that are said to be offering a 25M takeover deal. Sainsbury refuted claims that proof of funds had not been seen and elaborated further; claiming a deal had been completed by Directors of Leeds United and Michael Lucas from Nova in which a contract would be signed on Monday and the deal completed by the transfer of funds on Thursday when he would become the new Chairman of the club. Sainsbury claimed this agreement was reached at 2pm on Saturday in the Boardroom at Preston North End.
Following the match, Leeds Finance Director, Melvyn Helme joined the commentators for a post match reaction and to comment of the earlier claims of Sainsbury. He started by praising the team for the performance and explained that as far as he was concerned, the club still had not received proof of funds as confirmed on Saturday afternoon by the clubs Solicitors, Leeds based Walker Morris. He explained that the proposals by the Nova group were acceptable to the club and that the club directors would proceed with the contract signing, once the required proof of funds had been obtained. Mr Helme also spoke out against the actions of the consortium in going public with negotiations, saying the delays were unsettling to those at the club, including the backroom staff, players and fans, and asked Sebastian Sainsbury to either put up, or shut up.
At this point in the Interview, Sebastian Sainsbury joined the presenter and Mr Helme on the telephone. He stated the consortium had provided proof of funds however this was challenged by Mr Helme who stated that the club had only received a letter from a Canadian Solicitor, unassociated with the consortium which stated he had been asked by them to write the letter. Mr Helme confirmed the clubs solicitors did not accept this as proof. Mr Sainsbury went to state that asking for this level of proof was not a normal way to conduct business and that as soon as the contract was signed, the funds would be transferred. He also stated he couldn't understand why the club was delaying this and challenged Mr Helme to confirm the discussion earlier in the Preston boardroom. Mr Helme declined to comment of this point. Sebastian Sainsbury was also asked why he couldn’t simply provide the name of the bank or an account number. Mr Sainsbury declined on both counts stating this was not the way to conduct business. The two men repeatedly spoke over each other and ignored questions from the other, signify to the listeners that both were some way apart on their understanding of the present situation.
Comment:-
It seems apparent that a hold up to the deal at present is the difference in understanding between the two sets of Solicitors involved. Leeds are asking for further proof of funds and the consortium do not believe this is necessary. Both parties probably have viable reasons for current standpoint however further negations and possible compromises are needed for the deal to proceed.
Melvyn Helme has spoken with conviction and I for one agree with his sentiments that this deal should not be concluded so publicly. Leeds have been approached by several high profile bids to take them over, each one failing to come to fruition and I believe the board are aright to be cautious. On the flip side, I can also understand the alleged frustration of the American based consortium. Imagine putting a bid on a house for sale and having to provide all your bank account details to the sellers before they accept your offer. I’m sure any contract can be written up and signed subject to full payment as agreed for it to be valid.
This latest mess is coming to a head and expect further news this week. If the deal comes off, it’s good news for Leeds. The debt will be cleared, money for team building and plans to buy back Thorpe Arch Training facilities. A new board will be good for the club as the present one, whilst doing a fantastic job atsaving the club, are not dynamic enough or financially capable of moving the club forward for a good number of years.
Leeds Finance Director clashes with Sainsbury
By Rich Baggott - November 8 2004Leeds Club Direcotor clashed live on Radio Aire with Sebastion Sainsbury, frontman for the Nova Financial Consortium that are currently in the process of trying the buy the club
Shortly before kick off, Radio Aire held an exclusive chat with Sebastian Sainsbury, the front man of the Nova Financial Group consortium that are said to be offering a 25M takeover deal. Sainsbury refuted claims that proof of funds had not been seen and elaborated further; claiming a deal had been completed by Directors of Leeds United and Michael Lucas from Nova in which a contract would be signed on Monday and the deal completed by the transfer of funds on Thursday when he would become the new Chairman of the club. Sainsbury claimed this agreement was reached at 2pm on Saturday in the Boardroom at Preston North End.
Following the match, Leeds Finance Director, Melvyn Helme joined the commentators for a post match reaction and to comment of the earlier claims of Sainsbury. He started by praising the team for the performance and explained that as far as he was concerned, the club still had not received proof of funds as confirmed on Saturday afternoon by the clubs Solicitors, Leeds based Walker Morris. He explained that the proposals by the Nova group were acceptable to the club and that the club directors would proceed with the contract signing, once the required proof of funds had been obtained. Mr Helme also spoke out against the actions of the consortium in going public with negotiations, saying the delays were unsettling to those at the club, including the backroom staff, players and fans, and asked Sebastian Sainsbury to either put up, or shut up.
At this point in the Interview, Sebastian Sainsbury joined the presenter and Mr Helme on the telephone. He stated the consortium had provided proof of funds however this was challenged by Mr Helme who stated that the club had only received a letter from a Canadian Solicitor, unassociated with the consortium which stated he had been asked by them to write the letter. Mr Helme confirmed the clubs solicitors did not accept this as proof. Mr Sainsbury went to state that asking for this level of proof was not a normal way to conduct business and that as soon as the contract was signed, the funds would be transferred. He also stated he couldn't understand why the club was delaying this and challenged Mr Helme to confirm the discussion earlier in the Preston boardroom. Mr Helme declined to comment of this point. Sebastian Sainsbury was also asked why he couldn’t simply provide the name of the bank or an account number. Mr Sainsbury declined on both counts stating this was not the way to conduct business. The two men repeatedly spoke over each other and ignored questions from the other, signify to the listeners that both were some way apart on their understanding of the present situation.
Comment:-
It seems apparent that a hold up to the deal at present is the difference in understanding between the two sets of Solicitors involved. Leeds are asking for further proof of funds and the consortium do not believe this is necessary. Both parties probably have viable reasons for current standpoint however further negations and possible compromises are needed for the deal to proceed.
Melvyn Helme has spoken with conviction and I for one agree with his sentiments that this deal should not be concluded so publicly. Leeds have been approached by several high profile bids to take them over, each one failing to come to fruition and I believe the board are aright to be cautious. On the flip side, I can also understand the alleged frustration of the American based consortium. Imagine putting a bid on a house for sale and having to provide all your bank account details to the sellers before they accept your offer. I’m sure any contract can be written up and signed subject to full payment as agreed for it to be valid.
This latest mess is coming to a head and expect further news this week. If the deal comes off, it’s good news for Leeds. The debt will be cleared, money for team building and plans to buy back Thorpe Arch Training facilities. A new board will be good for the club as the present one, whilst doing a fantastic job atsaving the club, are not dynamic enough or financially capable of moving the club forward for a good number of years.
