Leeds are again on Sainsbury shopping list

SEBASTIEN SAINSBURY is back in the running to take over Leeds just over a fortnight after being told by chairman Gerald Krasner his bid was dead in the water.

On November 12 Krasner was forced to call time on Sainsbury’s £25m offer to buy Leeds, and instead negotiated an £8m sale-and-leaseback agreement of Elland Road to further ease existing debts.

Krasner became exasperated by the Sainsbury consortium’s failure to meet a number of self-imposed deadlines, with the last straw arriving when the promised monies were not deposited into a solicitor’s bank account.

But in the intervening period Sainsbury is understood to have ditched Nova Financial Partners, an American group who were due to provide the funds necessary for the deal.

It is believed Sainsbury has been able to attract European investment and, after a day involved in a series of meetings with lawyers, he claims he now has the proof of funds required.

Krasner made it plain earlier this month the only way Sainsbury would be allowed back to the negotiating table was if he walked into Elland Road armed with a £25m cheque.

That would appear to be on the cards as Sainsbury said: “I have today made a formal offer to the lawyers of Leeds United Football Club. The proof of funding will be supplied in a manner that I know will totally satisfy the board of LUFC, and this will follow imminently.

“The offer includes the re-purchasing of Elland Road, the Thorp Arch training facility together with the first-team training pitch.

“In addition, monies will be made available for the working capital of the club together with the acquisition of new players.

“I will make no further comments until we have a response from the board.”

Krasner and his board have been waiting on investment from Norman Stubbs, a Leeds-based property developer willing to inject £10m, with the offer more of a merger than takeover.

However, it is understood there is the prospect Stubbs may side with Sainsbury if the funding he claims to now have in place, proves genuine.

However, Leeds United do not seem to be prepared to listen to Sainsbury’s offer.

Krasner said: “Today we received a letter from a different firm of solicitors representing Mr Sainsbury. Yet again there was no proof of funds provided.

“We can only assume Mr Sainsbury is simply intent on damaging a deal with another consortium we are in advanced discussions with, which is in a strong financial position to proceed.”