Leeds takeover by Sainsbury off

Leeds today confirmed negotiations for the takeover of the US-backed consortium led by Sebastien Sainsbury have ended and Elland Road is to be sold under a sale and lease back deal.

Leeds chairman Gerald Krasner also revealed that the club’s board was in “advanced discussions” with a local consortium.

Leeds called a press conference at Elland Road this afternoon to clarify the latest developments in the Sainsbury takeover saga.

The current Leeds board had set 1pm today as the deadline for the £25m (€35m) takeover deal to go through, after a joint announcement by the club and American company Nova Financial Partners earlier in the week that proof of funding had been established.

Leeds’ urgency for completion was prompted by the need to pay back the latest instalment of the loan owed by the current board to Jack Petchey, or trigger a £2m (€2.8m) penalty clause.

Krasner said: “Leeds United can confirm that current negotiations for a takeover of the club have ceased with Nova Financial Partners.

“We can also confirm that today we are in the final stages of completing the sale and lease back of Elland Road.”

Krasner, who said the sale of Elland Road should be finalised later today, would not say how much the deal was worth but confirmed that it meant the loan owed by the board to Jack Petchey would be paid off in full.

The Leeds board, fearing that the Nova deal might not go through, have also been in talks with a local consortium believed to be headed by local businessman Norman Stubbs.

Krasner said: “We are in advanced discussions with a local consortium which we hope to finish over the coming weeks.”