Administration will happen, warns Leeds chairman
Leeds chairman Gerald Krasner is refusing to give up the fight despite admitting “administration will happen” after Sebastien Sainsbury’s proposed takeover finally collapsed.
With the £25m (€35.7m) buy-out in tatters Leeds stand on the brink of administration, potentially within the next three months.
However, Krasner is determined to hold things together.
When asked whether Sainsbury’s decision meant administration was now around the corner for Leeds, Krasner, said: “Eventually it will happen. It is not going to happen today or tomorrow but unless something positive happens [with another investor], it will happen.”
He told The Independent’s online edition: “The financial situation has not been good since day one.
“But having reduced the debts from £104m (€148.4m) to less than £25m (€35.7m), we are not going to give up.”
The reason for the failure of Sainsbury’s bid is the reason the Elland Road club are in such dire straits – the high level of debt.
Although losses have been slashed from £104m (€148.4m) to £25m (€35.7m) in 10 months, the club is expected to lose £10m (€14.3m) between now and the end of the season.
Anyone staging a takeover bid – and Leeds-based property developer Norman Stubbs is the only interested party left – would have to find £40m (€57m).
There is not that sort of money washing around for Barclays Premiership clubs but despite yesterday’s developments, Sainsbury has still not given up hope of coming to Leeds’ rescue.
“We never had all our eggs in one basket and we do have a possible contingency plan,” he said.
“Over the next 24 hours we shall be considering our options, but I have developed a real affection for this football club and I still hope there is a way to save Leeds United. There is no way I want to see it go into administration, but should that happen I will not try to rescue it.
“I want to make it clear it has always been a case of Leeds or nothing for me. I will not be bidding for any other club.”
The prospect remains, however, of Leeds falling into administration, or even facing a winding-up order, which would result in an automatic 10-point deduction by the Football League and with it a battle to avoid relegation from the Coca-Cola Championship.
Leeds will now be desperate to do a deal with either Chelsea or Liverpool for young goalkeeper Scott Carson.
The club have met representatives from both sides over the last 24 hours and although no deal has been finalised Leeds could push through a transfer as they are in need of the funds it would bring.
