BBC 8/7/07
Pearson set to make Leeds offer
Former Hull City chairman Adam Pearson is set to make a bid for Leeds United, BBC Sport understands.
Leeds's administrators put the club up for sale on Friday and chairman Ken Bates has vowed to take legal action if the club is sold to a rival bidder.
Ex-Leeds chairman Gerald Krasner told BBC Five Live the interested parties he is aware of are "domestic based but the money may well come from abroad".
Potential buyers have until 1700 BST on Monday to submit an offer for the club.
Bates confirmed he has re-submitted his offer for the club after a legal challenge was made by HM Revenue and Customs (HMRC) over his original takeover plans.
The 75-year-old told Yorkshire Radio: "Our bid is the original deal that was done in the meeting of creditors when we placed the Company Voluntary Agreement (CVA) on June 1.
"We have amended it twice to try to meet the Inland Revenue's objections and now we've withdrawn the conditionality of it, so it's now unconditional.
"We believe in fact our offer is valid. Therefore it should be the only one to be accepted."
Pearson left his position at Hull in June after selling the club to a consortium fronted by Paul Duffen for £10m.
The former Leeds commercial director insisted in the same month that he was not considering making a move to buy the club and said: "To be honest, I think we can put this to bed.
"But, as for the long term, I certainly wouldn't rule out going into another club. It's an industry I really enjoy."
But he is now expected to make a formal approach along with Internet guru Peter Wilkinson.
Krasner added: I have been speaking to a number of people over the past few months.
"One of the conversations was about two of the consortiums joining together to make one super offer. I think if they were to team up they would stand a good chance of getting the club."
Those who have previously declared an interest in buying the club include Duncan Revie, son of former Leeds manager Don, and property entrepreneur Simon Morris.
Earlier this week, businessman Simon Franks said he was ready to buy Leeds United, through his Redbus investment vehicle.
Leeds have debts of £35m, including the money owed to HMRC in unpaid taxes.
Bates had proposed to take Leeds out of administration, repaying creditors eight pence in every pound that it owed.
Daily Mail 8/7/07
Bates legal threat if Leeds are sold to rival
Leeds chairman Ken Bates has vowed to take legal action if the club is sold to a rival bidder.
Leeds' administrators KPMG put the club up for sale on Friday night after Bates' buy-back deal was challenged in the High Court by the Inland Revenue.
KPMG have set a deadline of 5pm on Monday to receive offers for the club with two consortia, who have already lodged separate bids, believed to be holding talks about joining forces and mounting a 'super-bid'.
But Bates has warned he will not go out without a fight and confirmed he had re-submitted his offer for the club.
The 75-year-old told Yorkshire Radio: "Our bid is the original deal that was done in the meeting of creditors when we placed the Company Voluntary Agreement (CVA) on June 1.
"We have amended it twice to try and meet the Inland Revenue's objections and now we've withdrawn the conditionality of it, so it's now unconditional."
Bates insists the threat of bankruptcy still hangs over Elland Road and that administrators KPMG could be forced to close the club down if nobody steps forward to pay the day-to-day running costs.
And he claims rivals bidders, local property developer Simon Morris and London-based Redbus Group headed by Simon Franks, had made offers they could struggle to meet.
Bates said: "We believe in fact our offer is valid. Therefore it should be the only one to be accepted.
"So there's a problem and a possibility that if the administrator goes down another route then there could be further legal battles.
"After all, we haven't come all this way over the last two-and-half years, borrowed and spent all that money, got the club turned round, got rid of all the bad organisation that the previous regimes left in place to go out without a fight.
"We honestly believe we have the future of the club at heart and it can go forward under our stewardship."
The Inland Revenue are owed £7.7million by Leeds, who have total debts in excess of £35million.
Under the terms of Bates' initial 1p-in-the-pound buy-back deal the Inland Revenue were set to receive just £77,000.
Bates increased his offer to 8p in the pound, but his last-ditch offer to head off the Inland Revenue's legal challenge proved in vain.
On Friday the High Court postponed a decision on the Inland Revenue's appeal until September 3.
Bates added: "At the moment it's a very unhappy situation, it's unnecessary. At the moment we are precluded from signing players. We're just in limbo.
He added: "It must all be very worrying for the fans and it's very worrying for the staff. They're just ordinary people wondering if they've got a job or not.
"If it's not funded by someone the administrators will have to close the club down because they're not allowed to, if you like, trade and borrow money, so the answer would be bankruptcy."
Earlier today former Leeds chairman Gerald Krasner, an expert in insolvency law, told BBC Radio Five Live the successful bid for the club would be between £10 and £15million.
Krasner said: "Whoever buys it will have a club free of debt apart from football debt and therefore I think we'd be talking £5million-plus.
"We're not in the Premier League any more and there needs to be a lot of internal investment.
"This is money for the creditors left behind rather than buying the club. The club will need funding for the season which is probably £10-15million."
Krasner said he was unaware whether former Hull chairman Adam Pearson, a director at Elland Road until 2001, and multi-millionaire internet entrepreneur Pete Wilkinson were poised to make a move for the club.
Krasner added: "I haven't been contacted by Adam Pearson but in the last six weeks I've been speaking with representatives of three or four consortia.
"One of the conversations we've all had is whether two of them get together and put in a super-bid, and that is a still a possibility."
Daily Mail 7/7/07
League may have to help Leeds
By JOE BERNSTEIN
Leeds United may have to rely on special dispensation from the Football League to avoid going out of business.
The League One club are set to begin the new season in administration, with a new owner unlikely to take over until after a High Court hearing on September 3, three weeks after the first day of the season.
League rules prohibit a club in administration starting the season in case they cannot fulfil their fixtures.
Football League chairman Lord Mawhinney will discuss the crisis with senior executives next week.
Leeds chairman Ken Bates is involved in a three-way battle for control of the club with local property tycoon Simon Morris and rescue company Redbus, with the deadline for ownership bids closing at 5pm tomorrow.
Bates initially put the club into administration in May but bought it back with an offer of 1p in the pound.
Despite later increasing that to 8p in the pound, the Revenue and Customs, who are owed £7.7 million,forced administrators KPMG to reopen the bidding.
Bates may have to treble his offer to satisfy the Revenue.
Pearson set to make Leeds offer
Former Hull City chairman Adam Pearson is set to make a bid for Leeds United, BBC Sport understands.
Leeds's administrators put the club up for sale on Friday and chairman Ken Bates has vowed to take legal action if the club is sold to a rival bidder.
Ex-Leeds chairman Gerald Krasner told BBC Five Live the interested parties he is aware of are "domestic based but the money may well come from abroad".
Potential buyers have until 1700 BST on Monday to submit an offer for the club.
Bates confirmed he has re-submitted his offer for the club after a legal challenge was made by HM Revenue and Customs (HMRC) over his original takeover plans.
The 75-year-old told Yorkshire Radio: "Our bid is the original deal that was done in the meeting of creditors when we placed the Company Voluntary Agreement (CVA) on June 1.
"We have amended it twice to try to meet the Inland Revenue's objections and now we've withdrawn the conditionality of it, so it's now unconditional.
"We believe in fact our offer is valid. Therefore it should be the only one to be accepted."
Pearson left his position at Hull in June after selling the club to a consortium fronted by Paul Duffen for £10m.
The former Leeds commercial director insisted in the same month that he was not considering making a move to buy the club and said: "To be honest, I think we can put this to bed.
"But, as for the long term, I certainly wouldn't rule out going into another club. It's an industry I really enjoy."
But he is now expected to make a formal approach along with Internet guru Peter Wilkinson.
Krasner added: I have been speaking to a number of people over the past few months.
"One of the conversations was about two of the consortiums joining together to make one super offer. I think if they were to team up they would stand a good chance of getting the club."
Those who have previously declared an interest in buying the club include Duncan Revie, son of former Leeds manager Don, and property entrepreneur Simon Morris.
Earlier this week, businessman Simon Franks said he was ready to buy Leeds United, through his Redbus investment vehicle.
Leeds have debts of £35m, including the money owed to HMRC in unpaid taxes.
Bates had proposed to take Leeds out of administration, repaying creditors eight pence in every pound that it owed.
Daily Mail 8/7/07
Bates legal threat if Leeds are sold to rival
Leeds chairman Ken Bates has vowed to take legal action if the club is sold to a rival bidder.
Leeds' administrators KPMG put the club up for sale on Friday night after Bates' buy-back deal was challenged in the High Court by the Inland Revenue.
KPMG have set a deadline of 5pm on Monday to receive offers for the club with two consortia, who have already lodged separate bids, believed to be holding talks about joining forces and mounting a 'super-bid'.
But Bates has warned he will not go out without a fight and confirmed he had re-submitted his offer for the club.
The 75-year-old told Yorkshire Radio: "Our bid is the original deal that was done in the meeting of creditors when we placed the Company Voluntary Agreement (CVA) on June 1.
"We have amended it twice to try and meet the Inland Revenue's objections and now we've withdrawn the conditionality of it, so it's now unconditional."
Bates insists the threat of bankruptcy still hangs over Elland Road and that administrators KPMG could be forced to close the club down if nobody steps forward to pay the day-to-day running costs.
And he claims rivals bidders, local property developer Simon Morris and London-based Redbus Group headed by Simon Franks, had made offers they could struggle to meet.
Bates said: "We believe in fact our offer is valid. Therefore it should be the only one to be accepted.
"So there's a problem and a possibility that if the administrator goes down another route then there could be further legal battles.
"After all, we haven't come all this way over the last two-and-half years, borrowed and spent all that money, got the club turned round, got rid of all the bad organisation that the previous regimes left in place to go out without a fight.
"We honestly believe we have the future of the club at heart and it can go forward under our stewardship."
The Inland Revenue are owed £7.7million by Leeds, who have total debts in excess of £35million.
Under the terms of Bates' initial 1p-in-the-pound buy-back deal the Inland Revenue were set to receive just £77,000.
Bates increased his offer to 8p in the pound, but his last-ditch offer to head off the Inland Revenue's legal challenge proved in vain.
On Friday the High Court postponed a decision on the Inland Revenue's appeal until September 3.
Bates added: "At the moment it's a very unhappy situation, it's unnecessary. At the moment we are precluded from signing players. We're just in limbo.
He added: "It must all be very worrying for the fans and it's very worrying for the staff. They're just ordinary people wondering if they've got a job or not.
"If it's not funded by someone the administrators will have to close the club down because they're not allowed to, if you like, trade and borrow money, so the answer would be bankruptcy."
Earlier today former Leeds chairman Gerald Krasner, an expert in insolvency law, told BBC Radio Five Live the successful bid for the club would be between £10 and £15million.
Krasner said: "Whoever buys it will have a club free of debt apart from football debt and therefore I think we'd be talking £5million-plus.
"We're not in the Premier League any more and there needs to be a lot of internal investment.
"This is money for the creditors left behind rather than buying the club. The club will need funding for the season which is probably £10-15million."
Krasner said he was unaware whether former Hull chairman Adam Pearson, a director at Elland Road until 2001, and multi-millionaire internet entrepreneur Pete Wilkinson were poised to make a move for the club.
Krasner added: "I haven't been contacted by Adam Pearson but in the last six weeks I've been speaking with representatives of three or four consortia.
"One of the conversations we've all had is whether two of them get together and put in a super-bid, and that is a still a possibility."
Daily Mail 7/7/07
League may have to help Leeds
By JOE BERNSTEIN
Leeds United may have to rely on special dispensation from the Football League to avoid going out of business.
The League One club are set to begin the new season in administration, with a new owner unlikely to take over until after a High Court hearing on September 3, three weeks after the first day of the season.
League rules prohibit a club in administration starting the season in case they cannot fulfil their fixtures.
Football League chairman Lord Mawhinney will discuss the crisis with senior executives next week.
Leeds chairman Ken Bates is involved in a three-way battle for control of the club with local property tycoon Simon Morris and rescue company Redbus, with the deadline for ownership bids closing at 5pm tomorrow.
Bates initially put the club into administration in May but bought it back with an offer of 1p in the pound.
Despite later increasing that to 8p in the pound, the Revenue and Customs, who are owed £7.7 million,forced administrators KPMG to reopen the bidding.
Bates may have to treble his offer to satisfy the Revenue.
