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We weren't wealthy enoughFormer Leeds United director claims consortium didn't do 'sufficient homework' before taking over troubled club
A MEMBER of the consortium that took charge of Leeds United earlier this year has admitted they did not have sufficient resources to buy the club.
Richard Sutcliffe
David Richmond last night broke his silence on a four-month spell as managing director at Elland Road and admitted to wishing he had never got involved.
He was part of a five-man consortium led by current chairman Gerald Krasner that took over United in March, but quit in July after the gates to his home were padlocked by thugs as part of a campaign aimed at drivimg him away from Elland Road.
Leeds's debts have been reduced from more than £100m to just below £25m by the current board, although the club remain in financial trouble, Krasner last week asking the Inland Revenue for 'time to pay' an estimated bill of £1.2m. Substantial payments are also due to a number of former players in January.
The board agreed sale-leaseback deals for Elland Road and United's Thorp Arch training ground to help keep the club afloat, while all the star players have been sold.
The club remain in negotiations with Sebastien Sainsbury, over a proposed £25m takeover, and Norman Stubbs, a local businessman looking to invest in United, but nothing will happen until the New Year.
Richmond, the biggest single shareholder with 32 per cent until he transferred the majority of those to the remaining board members in September, said: "I have always been a Leeds United fan, even when a director at Bradford City, and it was a dream of mine to be involved in running the club. But it turned into a nightmare and I have had, without question, the worst year of my life.
"It has affected my health and also my family. If I could have my time again, I would not get involved. I, along with the other directors, have money in the club and if Leeds United go under then I will lose it.
"The football club owes me an awful lot of money, running into many hundreds of thousands of pounds. To some wealthy people that may not be a lot, but to me it is a fortune. Obviously, I would very much like that money back but it can only come out when the football club can afford it. I may or may not get it back."
On the five-man group that took over United in March, Richmond added: "We were not a wealthy enough consortium and we didn't do our homework sufficiently. Our plan needed the 20-year season ticket scheme to work, but unfortunately it didn't."
Krasner's group borrowed £15m from Aston Villa shareholder Jack Petchey to help fund their March takeover and hoped the 20-year season tickets would raise around two-thirds of that amount. However, only a handful of fans took up the offer and Leeds sold Elland Road to finally clear the debt to Petchey.
A club spokesman declined to comment last night on Richmond's comments, but Krasner told last month's press conference to announce the ground sale that "there is no more money in our consortium to put in".
Relegation from the Premiership cost United dear with the wage bill having to be cut dramatically and settlements needing to be reached with several players on long-term contracts in order for them to leave.
Richmond, who negotiated a number of those deals, has denied being paid £17,000 per month by United as part of a consultancy agreement drawn up after he left the club. It was reported the deal, set to run for 27 months, started on November 1 this year, but Richmond told the Yorkshire Post: "I have not received any money and that is a fact. A document was drawn up but nothing came of it.
"It was drawn up at a very different time when it looked like Leeds United was going to be taken over, but it did not happen. I could draw the money and I could also insist on my loan being paid back. But clearly I am not going to do that."
We weren't wealthy enoughFormer Leeds United director claims consortium didn't do 'sufficient homework' before taking over troubled club
A MEMBER of the consortium that took charge of Leeds United earlier this year has admitted they did not have sufficient resources to buy the club.
Richard Sutcliffe
David Richmond last night broke his silence on a four-month spell as managing director at Elland Road and admitted to wishing he had never got involved.
He was part of a five-man consortium led by current chairman Gerald Krasner that took over United in March, but quit in July after the gates to his home were padlocked by thugs as part of a campaign aimed at drivimg him away from Elland Road.
Leeds's debts have been reduced from more than £100m to just below £25m by the current board, although the club remain in financial trouble, Krasner last week asking the Inland Revenue for 'time to pay' an estimated bill of £1.2m. Substantial payments are also due to a number of former players in January.
The board agreed sale-leaseback deals for Elland Road and United's Thorp Arch training ground to help keep the club afloat, while all the star players have been sold.
The club remain in negotiations with Sebastien Sainsbury, over a proposed £25m takeover, and Norman Stubbs, a local businessman looking to invest in United, but nothing will happen until the New Year.
Richmond, the biggest single shareholder with 32 per cent until he transferred the majority of those to the remaining board members in September, said: "I have always been a Leeds United fan, even when a director at Bradford City, and it was a dream of mine to be involved in running the club. But it turned into a nightmare and I have had, without question, the worst year of my life.
"It has affected my health and also my family. If I could have my time again, I would not get involved. I, along with the other directors, have money in the club and if Leeds United go under then I will lose it.
"The football club owes me an awful lot of money, running into many hundreds of thousands of pounds. To some wealthy people that may not be a lot, but to me it is a fortune. Obviously, I would very much like that money back but it can only come out when the football club can afford it. I may or may not get it back."
On the five-man group that took over United in March, Richmond added: "We were not a wealthy enough consortium and we didn't do our homework sufficiently. Our plan needed the 20-year season ticket scheme to work, but unfortunately it didn't."
Krasner's group borrowed £15m from Aston Villa shareholder Jack Petchey to help fund their March takeover and hoped the 20-year season tickets would raise around two-thirds of that amount. However, only a handful of fans took up the offer and Leeds sold Elland Road to finally clear the debt to Petchey.
A club spokesman declined to comment last night on Richmond's comments, but Krasner told last month's press conference to announce the ground sale that "there is no more money in our consortium to put in".
Relegation from the Premiership cost United dear with the wage bill having to be cut dramatically and settlements needing to be reached with several players on long-term contracts in order for them to leave.
Richmond, who negotiated a number of those deals, has denied being paid £17,000 per month by United as part of a consultancy agreement drawn up after he left the club. It was reported the deal, set to run for 27 months, started on November 1 this year, but Richmond told the Yorkshire Post: "I have not received any money and that is a fact. A document was drawn up but nothing came of it.
"It was drawn up at a very different time when it looked like Leeds United was going to be taken over, but it did not happen. I could draw the money and I could also insist on my loan being paid back. But clearly I am not going to do that."