Leeds takeover talks 'serious'

A representative of the consortium hoping to takeover debt-ridden Leeds has confirmed they are in “serious negotiations with the club and the bondholders”.

Gerald Krasner, who specialises in corporate recovery, restructuring and insolvency for Bartfields Chartered Accountants in Leeds, has revealed talks are at an advanced stage.

Due to reasons of confidentiality, the 54-year-old refused to divulge the names of the other members of the group, although speculation is rife as to who is fronting the £20m (€29m) bid.

Former Bradford chairman Geoffrey Richmond is being strongly touted, however, he has categorically stated he is not involved as he claims he is scarred following his experiences at Valley Parade.

Two of the main players are understood to be property developer Simon Morris and entrepreneur Melvyn Levy, while Terry Fisher, a staunch Leeds supporter, who last year failed to take control of Huddersfield when they were in administration, has also been mentioned.

Krasner, a Leeds fan for almost 30 years, told PA Sport: “I can confirm there’s a consortium that I have been asked to represent, but we’ve signed all sorts of confidentiality agreements.

“However, I can state we are in serious negotiations with both the club and the bondholders which will be ongoing throughout the day.

“Our objective is to avoid administration at all costs. I don’t think the public realise just what administration would mean for Leeds United.”

Despite Krasner’s line of work, he confirmed the group “would not be looking to do anything on the insolvency front with Leeds”.

It is understood the bondholders – MetLife and Teachers in the United States and British firm M&G, along with the player-leasing agents Registered European Football Finance Ltd – are key to the deal.

Much appears to depend on whether they accept the offer on the table, however, they are clearly considering the proposals after yesterday granting chairman Trevor Birch an extension of the ’standstill agreement’ deadline until 5pm this Friday.

Birch has stated “constructive talks are continuing” with the consortium, although he is known to still be looking at alternative ways of raising the £3.5m (€5.1m) to £5m (€7.2m) needed to see Leeds through to the end of the season should those talks collapse.

Almost certainly Birch would again look to the players, who last week declined to take an initial 35% wage deferral, with the PFA also snubbed when they suggested 30%.

Birch has since made stringent efforts to save money and he could ask former managers David O’Leary, Terry Venables and Peter Reid to defer severance payments following their dismissals, with all three confirming they would do so if approached.

With cuts in the pipeline, the players may then be asked to defer between 10% and 20%, which could prove far more acceptable as the players confirmed they would help, but only as a last resort.

If further talks are necessary, the Professional Footballer’s Association would likely meet the players on Thursday, with deputy chief executive Mick McGuire confirming: “We did promise the players last week we would go back in.

“A week later we need to look again at the situation because things are happening. It would just really be an update and to re-evaluate.

“We will certainly be looking to speak to the club, and if we’ve got anything then we will be looking to speak to the players.

“If there’s a need to help then we’ll be looking to see what the players’ response will be, although they’ve already said in a statement if it’s absolutely necessary, they will support the club.”