Sporting Life - Football

NEW OWNERS SEAL LEEDS TAKEOVER
"We're off life support" was how new Leeds chairman Gerald Krasner described the condition of a club which would appear to have been given a new lease of life.
In a deal understood to be worth £22million, Krasner has managed to rid the club of its major creditors and wipe out more than £80million worth of debt.
Krasner, an insolvency practitioner and the voice of the consortium since they entered into negotiations two months ago, heads a six-man board which has taken control of Leeds.
The life-long Leeds fan is joined by former United legend Peter Lorimer, who will become a director and responsible for interacting with the media.
The other names include property developers Simon Morris and Melvin Helme, the latter to serve as corporate finance director given his former role as a NatWest bank high-flier, and entrepreneur Melvyn Levi.
The last figure is that of the new commercial and marketing director David Richmond, the son of former Bradford chairman Geoffrey who has been acting as an unpaid advisor throughout the deal.
The fact the Richmonds are involved, given the financial legacy they left behind at Bradford as the club hurtled into administration with debts amounting to £36million, is certain to cause Leeds fans grave consternation.
Krasner, though, believes he and his board start with a clean slate as he said: "I hope the supporters will judge, not just me but the whole board, by what we do.
"There's been a lot of speculation that we are asset-strippers, which I've denied on a number of occasions.
"We're here, we've saved the club, we're off life support and now we're going to go and try to stay in the Premiership."
The nuances of the deal mean that Gerling Insurance Co, the credit insurers of player-leasing agents Registered European Football Finance Ltd and who were owed £21.3million, have cut their losses by accepting a one-off payment.
The bondholders in M&G, Teachers and MetLife have taken a lump sum now, but may receive further payments in future dependant on whether the club can recapture past glories.
The other major creditors - the Inland Revenue and Customs & Excise, who between them are owed in the region of £10million, will be paid off over an extended period along with other minor debtors such as former managers David O'Leary and Peter Reid.
In short, Leeds' debts now stand at a more manageable figure of just over £20million, with Krasner adding: "When we got into this deal the debt was over £100million.
"As a result of the transaction we have done the club is solvent again. We've sorted out all the debt problems. Let's now go forward and get the club back on the football pages."
The consortium also own Elland Road and the Thorp Arch training complex and Krasner has confirmed they remain key to their plans and the club's future.
"There has been rumour and counter rumour regarding the future of both Elland Road and Thorp Arch and, once again, we can categorically reassure fans that Leeds United will not be moving from Elland Road," insisted Krasner.
"As for Thorp Arch, contracts were already in place to sell a tract of land at the training ground which isn't currently used by the club.
"But there are no further plans to sell the site or move the academy as it forms a crucial and integral part of our business strategy and the club's future."
However, Geoffrey Richmond has revealed players will be shipped off the club's books in the summer as the wage bill continues to operate at a crippling level.
Even if Leeds remain in the Premier League, fans can expect to see Mark Viduka, Leeds' highest wage-earner on £65,000 per week, Paul Robinson and potentially Alan Smith leave in the close season.
"We have to cut costs," stated Richmond, who will continue to serve in his advisory role.
"We have 60 professionals at Leeds - that's first-year professionals right up to internationals - and 15 of those are on £1million or more. It's unsustainable."
Richmond has ruled out any suggestion the consortium might try to renegotiate some players' contracts, although the likes of Lucas Radebe, David Batty, Michael Bridges and Jason Wilcox will not be offered new deals when they expire in the summer.
"It is impossible to renegotiate a contract as that contract was negotiated in good faith.
"However some contracts - £11million worth of player contracts - come to an end on June 30 and it is unlikely that any of those will be renewed."
To facilitate the deal, administrators have been appointed to Leeds United plc and a subsidiary company, Leeds United Holdings Ltd.
The necessary move is part of the takeover and it has been made clear administrators have not been appointed to the football club or any other company within the Leeds United group.
The consortium have long pointed out their takeover realises no value to shareholders, resulting in the plc effectively being wound up.
As Garry Wilson, administrator for Ernst & Young, pointed out: "The ultimate result of this is that it releases Leeds United Football Club from what had become the burden of Leeds United plc."

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