Scratching Shed and Radio Leeds
The Scratching Shed 26/6/12
Takeover: Exclusivity Period Granted – Statement
After almost a month of uncharacteristic radio silence, Leeds’ official website has today announced that it has granted a period of exclusivity for a potential “investor” to carry out due diligence:
Further to our previous statement of the 29th May, Leeds United can confirm they have granted an exclusivity period to enable a potential investor to carry out the appropriate due diligence.
It is anticipated this will be a fairly straightforward process.
A confidentiality clause prevents the club from making any further comment. However, our discussions with them have left us very comfortable that they have the financial resources to support the club and that they will have no issues in satisfying the requirements of the Football League’s Owners and Directors Test, unlike many of the previous approaches we have had to endure.
This comes a week after the Leeds United Supporters Trust called for fans to be kept up to date without “putting a spanner in the works”. The announcement confirms that the club are legally not allowed to speak on the matter, and the last sentence of the statement points to the rumours of several bids being true. Unsubstantiated rumours had it that one group pulled out of negotiations last Friday following a gulf in valuations.
The statement would suggest a deal has been agreed in principle, and a deal edging closer will please fans, and I’m sure all parties involved, but not least Neil Warnock who will hope to be able to make a splash as the transfer market heats up in the coming month. Warnock divulged his desire to sign most of his targets before Leeds’ pre-season tour to the Westcountry next month, and has received glowing reports from players at the club including captain Robert Snodgrass, and highly rated full-back Adam Drury.
It’s not clear whether the group who seems to have won the race is one of the three parties who spoke to LUST and agreed their supporters’ vision, or another group, but it is thought that this will be a buyout rather than minor-shareholding investment. This is backed by talk of the Owners and Directors Test which would suggest a major position of power granted to the group at least.
On Twitter, The Supporters Trust said it was:
aware of and cautiously welcomes the latest statement by the club.
Radio Leeds with gary Cooper
Presenter: Lets hear Gary Cooper now from the Leeds United Supporters Trust, evening Gary
Gary Cooper: Evening
Presenter: What do you make of the statement released today?
GC: Well I'm really pleased that the club have made a statement. At the public meeting we had last Week it was very clear that the supporters were pushing very hard for the club to make some kind of statement and let them know what is going on. We reiterated that when we spoke to you last week so we bagging the club and said come on let's know what was happening. I'm very pleased that the club has come out and done this and thank you very much for letting us know. It's great news like Adam said it does open the door to a great deal of possibilities and opportunities but I think it is absolutely brilliant news.
Presenter: As you say it opens the door and if there was speculation before there certainly will be now as to who the potential investors are and whether this is investment or takeover.
GC: Well, I can say that the information we have received is that this is a takeover I think we are pretty confident in that. The statement from the club does tend to leave it a little bit open-ended and it could be interpreted in a couple of ways but from the sources we have spoken to we are confident that this is the takeover we felt would be in place.
Presenter: How long do you think that this due diligence process will take and if it is what you think it is as a takeover how long do you think that that will take as well?
GC: In all honesty that's a difficult question to answer. I am am pretty certain that perhaps things are are a little bit more advanced than the statement suggests so I would be hopeful that more positive news could break sooner rather than later. That said due diligence is a complicated process at best and if its going to be done it needs to be done correctly though I would urge the supporters of Leeds United to allow the potential buyers the opportunity to do this without the frenzy of knowing who they are at present. Let's get the process underway, let's get it done and I'm pretty certain we'll all come out the other side very happy.
Presenter: How much financial clout do you expect these potential investors to have? The statement says, "..the discussions we have had have left us very comfortable that they have the financial resources to support the club and also that they have no issues that they will satisfy the the requirements of the Football Leagues owners and directors test. You seem to know quite a bit that what you are divulging to us, but, seemingly these is going to benefit Leeds United.
GC: You would hope so, certainly if we go back to the original statement that the club put out on the 29th May that statement said that they would look to bringing in investors that would be for the long-term future of Leeds United. Now I think regardless of how you would interpret that the long-term future of Leeds United means that we need owners that are financially able to give us the security of our own ground, our own training ground as well and to invest on the team on the pitch to give us and our manager the opportunity to do what he's set out to do and that is to get us promoted next season. I'm confident that these people are very much in a position to able to do that.
Presenter: When you say in a position to do that are we talking the Championship of Roman Abramovich or is this just a decent amount of cash that the club will be able to throw at transfer fees, they are not going to pay their way out of the championship?
GC: It would be wrong of me to say any more but I would urge the new buyers to support Neil Warnock and to show that long-term future for the club that the club statement on 29th May asked for. I'm confident that they can do that.
Presenter: If we're speaking again at the end of this next season and this investment has gone through, how will you envisage Leeds United's season going with the backing of this investment?
GC: I can only go back to our Vision Statement in January the ambition is there for all to see. Adam was very eloquent when he talks about the potential for Leeds United. The fans know that and I think that football supporters all around the world know that. Everyone knows about Leeds United with the right investment and the right people at the helm the potential for this club is amazing. Lets hope we're going to see that recognised. The fans have waited very patiently,the fans have been brilliant, they have waited very patiently for something really positive to come from what's been a few years now of difficult times, lower gates, lowest position in the league, record defeats at home, best players being sold. But there's been some positives from the current owners, we've had the East stand improvements and we seem to be financially in a decent position, so now seems the right time for someone to come in and take it on to that extra step.
Presenter: Gary, thank you very much for joining us this evening.
Takeover: Exclusivity Period Granted – Statement
After almost a month of uncharacteristic radio silence, Leeds’ official website has today announced that it has granted a period of exclusivity for a potential “investor” to carry out due diligence:
Further to our previous statement of the 29th May, Leeds United can confirm they have granted an exclusivity period to enable a potential investor to carry out the appropriate due diligence.
It is anticipated this will be a fairly straightforward process.
A confidentiality clause prevents the club from making any further comment. However, our discussions with them have left us very comfortable that they have the financial resources to support the club and that they will have no issues in satisfying the requirements of the Football League’s Owners and Directors Test, unlike many of the previous approaches we have had to endure.
This comes a week after the Leeds United Supporters Trust called for fans to be kept up to date without “putting a spanner in the works”. The announcement confirms that the club are legally not allowed to speak on the matter, and the last sentence of the statement points to the rumours of several bids being true. Unsubstantiated rumours had it that one group pulled out of negotiations last Friday following a gulf in valuations.
The statement would suggest a deal has been agreed in principle, and a deal edging closer will please fans, and I’m sure all parties involved, but not least Neil Warnock who will hope to be able to make a splash as the transfer market heats up in the coming month. Warnock divulged his desire to sign most of his targets before Leeds’ pre-season tour to the Westcountry next month, and has received glowing reports from players at the club including captain Robert Snodgrass, and highly rated full-back Adam Drury.
It’s not clear whether the group who seems to have won the race is one of the three parties who spoke to LUST and agreed their supporters’ vision, or another group, but it is thought that this will be a buyout rather than minor-shareholding investment. This is backed by talk of the Owners and Directors Test which would suggest a major position of power granted to the group at least.
On Twitter, The Supporters Trust said it was:
aware of and cautiously welcomes the latest statement by the club.
Presenter: Lets hear Gary Cooper now from the Leeds United Supporters Trust, evening Gary
Gary Cooper: Evening
Presenter: What do you make of the statement released today?
GC: Well I'm really pleased that the club have made a statement. At the public meeting we had last Week it was very clear that the supporters were pushing very hard for the club to make some kind of statement and let them know what is going on. We reiterated that when we spoke to you last week so we bagging the club and said come on let's know what was happening. I'm very pleased that the club has come out and done this and thank you very much for letting us know. It's great news like Adam said it does open the door to a great deal of possibilities and opportunities but I think it is absolutely brilliant news.
Presenter: As you say it opens the door and if there was speculation before there certainly will be now as to who the potential investors are and whether this is investment or takeover.
GC: Well, I can say that the information we have received is that this is a takeover I think we are pretty confident in that. The statement from the club does tend to leave it a little bit open-ended and it could be interpreted in a couple of ways but from the sources we have spoken to we are confident that this is the takeover we felt would be in place.
Presenter: How long do you think that this due diligence process will take and if it is what you think it is as a takeover how long do you think that that will take as well?
GC: In all honesty that's a difficult question to answer. I am am pretty certain that perhaps things are are a little bit more advanced than the statement suggests so I would be hopeful that more positive news could break sooner rather than later. That said due diligence is a complicated process at best and if its going to be done it needs to be done correctly though I would urge the supporters of Leeds United to allow the potential buyers the opportunity to do this without the frenzy of knowing who they are at present. Let's get the process underway, let's get it done and I'm pretty certain we'll all come out the other side very happy.
Presenter: How much financial clout do you expect these potential investors to have? The statement says, "..the discussions we have had have left us very comfortable that they have the financial resources to support the club and also that they have no issues that they will satisfy the the requirements of the Football Leagues owners and directors test. You seem to know quite a bit that what you are divulging to us, but, seemingly these is going to benefit Leeds United.
GC: You would hope so, certainly if we go back to the original statement that the club put out on the 29th May that statement said that they would look to bringing in investors that would be for the long-term future of Leeds United. Now I think regardless of how you would interpret that the long-term future of Leeds United means that we need owners that are financially able to give us the security of our own ground, our own training ground as well and to invest on the team on the pitch to give us and our manager the opportunity to do what he's set out to do and that is to get us promoted next season. I'm confident that these people are very much in a position to able to do that.
Presenter: When you say in a position to do that are we talking the Championship of Roman Abramovich or is this just a decent amount of cash that the club will be able to throw at transfer fees, they are not going to pay their way out of the championship?
GC: It would be wrong of me to say any more but I would urge the new buyers to support Neil Warnock and to show that long-term future for the club that the club statement on 29th May asked for. I'm confident that they can do that.
Presenter: If we're speaking again at the end of this next season and this investment has gone through, how will you envisage Leeds United's season going with the backing of this investment?
GC: I can only go back to our Vision Statement in January the ambition is there for all to see. Adam was very eloquent when he talks about the potential for Leeds United. The fans know that and I think that football supporters all around the world know that. Everyone knows about Leeds United with the right investment and the right people at the helm the potential for this club is amazing. Lets hope we're going to see that recognised. The fans have waited very patiently,the fans have been brilliant, they have waited very patiently for something really positive to come from what's been a few years now of difficult times, lower gates, lowest position in the league, record defeats at home, best players being sold. But there's been some positives from the current owners, we've had the East stand improvements and we seem to be financially in a decent position, so now seems the right time for someone to come in and take it on to that extra step.
Presenter: Gary, thank you very much for joining us this evening.