Chairman Andrew Umbers discusses Leeds United's situation and aims for the future
leedsunited.com 30/1/15
Leeds United chairman Andrew Umbers has spoken publicly for the first time since stepping into the role in Massimo Cellino’s absence, and says the situation at the club has "dramatically improved" since last year’s takeover.
The pair have worked together closely to restructure the club and reduce its debt after last April’s 75 per cent purchase by Eleonora Sport Limited.
Following Massimo Cellino’s resignation of his post last week due to a failed appeal against the Football League’s ruling to disqualify him, Mr Umbers, a Yorkshireman and lifelong Leeds United fan, was appointed as the club’s chairman.
In a lengthy interview, Andrew Umbers spoke of Massimo Cellino’s passion and vision for the club, how they have forged close ties with Leeds City Council and their financial aims for the future.
"Massimo and I have never, ever regretted the task ahead," said the chairman.
"We’ve always thought through how we take cost out, how we rebrand Leeds United and how we protect the club from the issues that its faced without the fans knowing the real situation.
"Because, what Mr Cellino saw when he bought this club, was a fallen and sleeping giant with some mis-management over a long period of time, but what he did understand was that this is a club that he and I believe belongs to its fans.
"While Massimo Cellino owns the club, we are its stewards. The club is owned by its fans, it is owned by the city, it is owned by the community.
"The behaviour of previous owners was something that we felt meant all of those partnerships had been lost. So we set about trying to represent the club with the council and we believe we enjoy a really fruitful relationship with Leeds City Council.
"They supported us very clearly in the appeal - we had letters of representation from the council.
"We have purposely set about our business quietly because we’ve never wanted to undermine what goes on on the football side of things.
"Massimo Cellino has moved to Leeds, with his daughter in university, he’s passionate about football. He’s enthusiastic, passionate, unorthodox, emotional. He has football at his heart and has Leeds at his heart.
"In my experience, Leeds United could not want for a better owner and one who is more capable of facing the financial issues that we have faced over the last nine or 10 months."
Mr Umbers believes that if the club can achieve its financial aims, it would be "historic in the Championship" during what he describes as a “tenuous” time for a number of Football League sides.
"The situation has dramatically improved," he explained. "We set about the restructuring to look at cost, to look at revenue, to look at assets.
"We reduced our stewarding costs, we have re-engaged with the police, not necessarily because of the court case that was won, but more to work with them to provide a better service financially for the fans.
"We looked at Thorp Arch and reduced the costs there. We’ve also looked at the first-team costs as well and the legacy that was inherited.
"Financially, our aim and objective is to finish the 2016 season, which is also our year-end, at or around breakeven. And for the financial year of 2015 to have losses which will be around a 1/3 reduction from 2014.
"The losses were £22million in 2014, we hope for between £7-8million and then breakeven.
"The financial consequences of having a business that is going to produce those sets of numbers will be historic in the Championship. We know and everybody in football knows the financial situation among football clubs in all of the Football League is tenuous at best.
"Equally, the investment that Massimo Cellino has put into Leeds United in cash terms and the considerations of GFH that own 25%.
"And, with the internal re-organisation that is currently ongoing but will be concluded very shortly, on long-term debt situation will mean that our debt is very minimal.
"If you have a football club like Leeds United that has very little debt, that is getting close to breakeven, then it is such an advertisement for the way that Massimo Cellino and his management team have run the business. It’s long overdue at Leeds United."
Mr Umbers also gave an insight into his own background and how he became involved at the club, as well as explaining the extent of the situation when the takeover was first completed.
"When Massimo had taken over Leeds United back in April, he knew that he faced a very big task," said the chairman.
"I was approached by one of the two senior leading attorneys in the Italian FA to ask whether I could help Massimo Cellino in restructuring Leeds United.
"For the last three years, my background has been in the sports industry, whether that’s cricket or basketball, cycling or golf, in all sorts of matters.
"It involved providing capital, finding capital, restructuring, mergers and acquisitions.
"Prior to that, it was 30 years of investment banking. My track record in that is as chief executive of a company that was successfully restructured.
"Massimo and I sat down in April and around late April-early May we set about looking at what the business was.
"At that time, Massimo and I were advised by a leading firm of accountants and other financial experts that the club should go into administration.
"Massimo Cellino has run a football club in Sardinia – Cagliari – for 23 years, and for the last 15 years, that football club has made 10million euros of cash flow per annum.
"He has been president of Lega Pro – Serie B and Serie A. He has re-written rules and regulations within that league.
"He is unorthodox in the way that most owners in England are that own football clubs. He is very, very hands on.
"Because of his experience of running a football club in Italy, he really does know how to run a football club. From those experiences, we set about looking at all of the club.
"We did a complete root and branch of Leeds United. We didn’t accept that this football club should be in administration or going into administration.
"We faced having debt of over £40million, and a loss in June 2014 year-end of £22million, the backdrop was obviously pretty awful."
Leeds United chairman Andrew Umbers has spoken publicly for the first time since stepping into the role in Massimo Cellino’s absence, and says the situation at the club has "dramatically improved" since last year’s takeover.
The pair have worked together closely to restructure the club and reduce its debt after last April’s 75 per cent purchase by Eleonora Sport Limited.
Following Massimo Cellino’s resignation of his post last week due to a failed appeal against the Football League’s ruling to disqualify him, Mr Umbers, a Yorkshireman and lifelong Leeds United fan, was appointed as the club’s chairman.
In a lengthy interview, Andrew Umbers spoke of Massimo Cellino’s passion and vision for the club, how they have forged close ties with Leeds City Council and their financial aims for the future.
"Massimo and I have never, ever regretted the task ahead," said the chairman.
"We’ve always thought through how we take cost out, how we rebrand Leeds United and how we protect the club from the issues that its faced without the fans knowing the real situation.
"Because, what Mr Cellino saw when he bought this club, was a fallen and sleeping giant with some mis-management over a long period of time, but what he did understand was that this is a club that he and I believe belongs to its fans.
"While Massimo Cellino owns the club, we are its stewards. The club is owned by its fans, it is owned by the city, it is owned by the community.
"The behaviour of previous owners was something that we felt meant all of those partnerships had been lost. So we set about trying to represent the club with the council and we believe we enjoy a really fruitful relationship with Leeds City Council.
"They supported us very clearly in the appeal - we had letters of representation from the council.
"We have purposely set about our business quietly because we’ve never wanted to undermine what goes on on the football side of things.
"Massimo Cellino has moved to Leeds, with his daughter in university, he’s passionate about football. He’s enthusiastic, passionate, unorthodox, emotional. He has football at his heart and has Leeds at his heart.
"In my experience, Leeds United could not want for a better owner and one who is more capable of facing the financial issues that we have faced over the last nine or 10 months."
Mr Umbers believes that if the club can achieve its financial aims, it would be "historic in the Championship" during what he describes as a “tenuous” time for a number of Football League sides.
"The situation has dramatically improved," he explained. "We set about the restructuring to look at cost, to look at revenue, to look at assets.
"We reduced our stewarding costs, we have re-engaged with the police, not necessarily because of the court case that was won, but more to work with them to provide a better service financially for the fans.
"We looked at Thorp Arch and reduced the costs there. We’ve also looked at the first-team costs as well and the legacy that was inherited.
"Financially, our aim and objective is to finish the 2016 season, which is also our year-end, at or around breakeven. And for the financial year of 2015 to have losses which will be around a 1/3 reduction from 2014.
"The losses were £22million in 2014, we hope for between £7-8million and then breakeven.
"The financial consequences of having a business that is going to produce those sets of numbers will be historic in the Championship. We know and everybody in football knows the financial situation among football clubs in all of the Football League is tenuous at best.
"Equally, the investment that Massimo Cellino has put into Leeds United in cash terms and the considerations of GFH that own 25%.
"And, with the internal re-organisation that is currently ongoing but will be concluded very shortly, on long-term debt situation will mean that our debt is very minimal.
"If you have a football club like Leeds United that has very little debt, that is getting close to breakeven, then it is such an advertisement for the way that Massimo Cellino and his management team have run the business. It’s long overdue at Leeds United."
Mr Umbers also gave an insight into his own background and how he became involved at the club, as well as explaining the extent of the situation when the takeover was first completed.
"When Massimo had taken over Leeds United back in April, he knew that he faced a very big task," said the chairman.
"I was approached by one of the two senior leading attorneys in the Italian FA to ask whether I could help Massimo Cellino in restructuring Leeds United.
"For the last three years, my background has been in the sports industry, whether that’s cricket or basketball, cycling or golf, in all sorts of matters.
"It involved providing capital, finding capital, restructuring, mergers and acquisitions.
"Prior to that, it was 30 years of investment banking. My track record in that is as chief executive of a company that was successfully restructured.
"Massimo and I sat down in April and around late April-early May we set about looking at what the business was.
"At that time, Massimo and I were advised by a leading firm of accountants and other financial experts that the club should go into administration.
"Massimo Cellino has run a football club in Sardinia – Cagliari – for 23 years, and for the last 15 years, that football club has made 10million euros of cash flow per annum.
"He has been president of Lega Pro – Serie B and Serie A. He has re-written rules and regulations within that league.
"He is unorthodox in the way that most owners in England are that own football clubs. He is very, very hands on.
"Because of his experience of running a football club in Italy, he really does know how to run a football club. From those experiences, we set about looking at all of the club.
"We did a complete root and branch of Leeds United. We didn’t accept that this football club should be in administration or going into administration.
"We faced having debt of over £40million, and a loss in June 2014 year-end of £22million, the backdrop was obviously pretty awful."