Race hots up in Leeds takeover

LEEDS chief executive Trevor Birch has warned it would be “a brave man” who puts the club into administration.

The club have confirmed to the stock exchange they are in discussions with a number of interested parties about a possible takeover, although negotiations “are at a very early stage.”

While Birch remains optimistic new owners will be found for Leeds, who are currently around £80 million in debt, understandably there are contingency plans in place should the club fail to attract a buyer.

The worst-case scenario is administration, with the club having until January 19 to avert such a prospect after last week reaching “a standstill agreement” with their creditors.

Consortia led by Sheikh Abdulrahman bin Mubarak Al-Khalifa and former deputy plc chairman Allan Leighton are among those leading the chase to buy Leeds.

It is understood there are another three prospective clients putting together bids as the race hots up to seize control and keep Leeds out of the administrator’s hands, particularly as there are no guarantees about the club’s fate should that happen.

“There is great fundamental uncertainty whether the club could go into administration and reappear because Premier League rules are different to Football League rules,” said Birch.

“The Premier League is a limited company, there are 20 shareholders and the fate of the club is likely to be decided by the 20 representatives at a shareholders’ meeting.

“You couldn’t, hand on heart, take the club into an administration process when you are not sure about what the outcome would be.

“For example, take a club trying to make ends meet and they’ve had mediocrity for the last five or six years.

“They may have looked on with jealousy at what Leeds have done, but then see Leeds wiping out their debts. They could say ‘tough, you’ve broken the rules and out you go’.

“That’s not inconceivable, so it’s a brave man who puts the club into administration because it could happen and that’s what we are up against.”

But Birch has no desire to dwell on the negative, believing a solution will be found, aided by the attractiveness of a new kit deal which is due to be announced next week.

Nike are to make way for Diadora in an agreement worth between £12-15million over at least five years, with Leeds having a greater input into the manufacture of the merchandise.

Birch also feels the players can play their part by continuing with the form they have shown in the last.

Striker Alan Smith, meanwhile, is likely to have to wait until early January for his personal hearing into a charge of misconduct after throwing a bottle into the crowd during the Carling Cup clash with Manchester United at Elland Road in October.