Leeds Today

GREEN FOR GO
EXCLUSIVE: yep investigation into united future
Philip Green could emerge as the public face of a bid which would see considerable funds pumped into Leeds United
AS the clock starts ticking away on cash-strapped Leeds United's bid to find a buyer or investor by January 19 YEP soccer writer PAUL DEWS examines the various scenarios facing the club.

TREVOR BIRCH and Leeds United's plc board face an unenviable task.
They have just five weeks to agree a rescue deal with a consortium that will not only save Leeds United from administration, but will also safeguard the long-term future of the Elland Road outfit.
It is not just about finding a buyer for the business, but finding one who will satisfy the interests of the creditors, the shareholders and, indeed, the board itself.
The clinching of a deal could even spell the end of the road for the very men who are being charged with saving United from oblivion.
There are so many scenarios available that it would be no surprise to see potential investors and United officials hammering out the fine print in the hours leading up to the deadline.
To date only one party has expressed a firm interest in the football club and United insist they are still waiting for confirmation of the Middle East consortium's financial muscle.
It's known that Allan Leighton is ready and willing to broker a deal involving his associates, while two other unidentified parties are understood to be making noises about jumping on board.
How much cash is on the table varies according to the different consortia. United were valued at £19m today and have an additional £82m worth of debt.
It's unlikely that anyone will step forward with an offer of £103m and any bid would have to satisfy the shareholders and creditors.
But what would a takeover mean to the fans and will everything in United's garden be rosy by the middle of next month?
Tonight, the Yorkshire Evening Post investigates the possible outcomes and what they would mean for Leeds United.
1 THE SHEIKH
Sheikh Abdulrahman bin Mubarak Al-Khalifa is the only individual to have gone public over his interest. It's known that he is backed by two wealthy Saudi businessmen – and he is a lifelong fan of United.
The Sheikh, pictured, has already said he would not support the selling of players and he is known to have the best interests of the Elland Road club at heart.
The Sheikh is likely to step forward with a cash offer which would be for the purchase of shares and a reduction of the overall debt. Money could also be available for team strengthening.
2 ALLAN LEIGHTON
United's former deputy chairman has yet to declare any firm interest in brokering a deal, but is believed to be discussing possible investment with City contacts.
His long-time associate Philip Green could emerge as the public face of a bid which would see considerable funds pumped into the football club.
By acting as broker Leighton, pictured, would be able to assemble a consortium which, like the Sheikh, would almost certainly ensure the club's long-term future. The syndicate would also make an initial investment in shares and reduce the debt.
3 SMALL BUSINESS CONSORTIUM
There are other figures waiting in the wings without the massive financial clout of the Sheikh or Leighton, hoping to seize an opportunity to take control at Elland Road.
Their initial cash investment could well be much lower than those in options one and two and, while shareholders may feel happy with it, it is unlikely that there would be any dramatic reduction of United's massive debt.
Extra funds would be required to strengthen a business which has been forced to slash its costs and a smaller consortium is unlikely to have the cash required to maintain the club's current status.
United would continue in the short-term in its present form, but without substantial future investment a sustained period of mediocrity and all that that entails would be likely.
Smaller consortiums are likely to come to the fore if United slip into administration.
4 OVERSEAS PLAN
An alternative to a major outright investment would be a consortium willing to buy up some shares, but come to a separate non-cash agreement with the creditors.
For example this could lead to a deal with the largest creditors where Elland Road is handed over to the bondholders and the club lease it back at a fraction of the debt. Leicester City adopted a similar route and, while not as effective as the first two options, such a takeover would enable Leeds United to continue in its current guise.
The new owners would look to generate further income through the sales of media and merchandising rights on a global basis and the club, without the major creditors, would eventually become self-financing.
This form of investment is more likely to come from sources outside the UK who are keen to maximise United's branding rights.
It's understood that chairman John McKenzie, who has business contacts in Asia, favours this option or option one because it will leave the club in the hands of people who are fans. It's known that the chairman is currently working on this.
5 ADMINISTRATION
Administration would not necessarily mean the end of the road for Leeds United and, from a fan's perspective, it would give the club a good chance of finding a buyer who has his roots entrenched at Elland Road.
An agreement would be reached with the creditors and the aim of the administrators would be to sell United as a going concern at what would be a knock-down price.
However, player sales would be almost certain at the end of January – the administrators would be obliged to listen to any offers – and costs would be further slashed in a bid to appease the club's major creditors.
The other concern is how the Premier League would react to one of its clubs going into administration and, with a number of other chairmen already expressing concern at the prospect, it is a risk United are desperate to avoid.
6 ASSET STRIPPER
The potential asset stripper would creep in if no other significant offer appears.
They would buy up the shares at the lowest price.
Players would be sold in order to slash the hefty wage bill – and fund the re-payment of the debts – while the Elland Road stadium, a piece of prime land owned by the football club, could be sold on.
Such decisions would please the bankers and the creditors, but the business would be run at a fraction of current costs and would inevitably slip.
However, with cash in the bank a timely decision to sell could see the asset stripper walk away with a tidy sum and leave behind an uncertain future for an under-performing club.
In short, while the initial offer may be good, the future for United would be bleak.

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