Seems to be going from bad to worse for them.
Leeds United could be plunged into financial turmoil with the threat of administration as a takeover bid by the Italian businessman Massimo Cellino appears to be on the verge of collapse.
Cellino’s attempt to take a 75 per cent stake in the Championship club is likely to be blocked by the Football League after he was found guilty of tax evasion in Italy, although sources have stressed that they are still looking into the case and have not made a final decision.
If Leeds are put into administration they will automatically be docked 10 points, which would leave them just five points above the Championship’s relegation zone.
That is not in the interests of present owners GFH Capital. They will try to keep the club running while they wait for a decision, although it is thought that they have only been able to do that in recent weeks because of money provided by Cellino.
Cellino agreed to buy Leeds from GFH Capital through a family company, Eleonora Sports, on Feb 1, but he has been unable to take control because of Football League rules designed to protect clubs from unsuitable owners.
The 57-year-old was already under investigation before the guilty verdict on a tax evasion charge, under the “fit and proper persons” test because of previous financial irregularity charges during his time as owner of the Italian club Cagliari.
The rule prevents anyone with unspent dishonesty convictions from taking control of an English club and although Cellino is likely to appeal against the guilty verdict for the non-payment of tax on a yacht he bought in the United States, Leeds are stuck in limbo and face an uncertain future.
Cellino has been providing considerable funds to cover running costs at Elland Road while he waits for the Football League to ratify the deal he struck with GFH Capital. It is thought that Cellino has covered the staff wage bill for the past two months and also paid off a loan from shirt sponsor Enterprise Insurance to prevent a winding-up order.
Leeds have also been able to sign goalkeeper Jack Butland on loan from Stoke City and striker Connor Wickham from Sunderland because of money provided by Eleonora Sports.
If the Football League blocks Cellino’s takeover – it is still discussing its position with the Italian’s lawyers – Leeds will not only have to try to find a new buyer, they are also likely to have to repay him the money he has spent on the club over the past few weeks.
David Haigh, the Leeds managing director, insisted last week that there was “no chance” of the club going into administration, but that may change if Cellino withdrew his investment.
The Daily Telegraph attempted to contact GFH Capital to clarify the situation, but there has been no response from the Bahrain-based investment group.
A Football League spokesman said: “The Football League has noted the outcome of the court hearing earlier today regarding Massimo Cellino. We are engaged in an ongoing dialogue with his legal representatives in this country and cannot comment further at this time.”
A rival consortium to Cellino, headed by Andrew Flowers, chief executive of Enterprise Insurance, withdrew its offer to take control at Elland Road at the end of January. Another bid from a group called Together Leeds had a “derisory” offer rejected by GFH Capital in November, but is thought to remain interested in a deal.
Cellino is trying to use Eleonora Sport as a means to show he will not have day-to-day control of Leeds. But he has already sacked manager Brian McDermott and been forced to reinstate him last month when it became clear he had no authority to do so as the takeover had not been cleared.
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Leeds are bottom of form table for the championship for last six matches.
Guilty of tax evasion and charges of financial irregularities at another club and still the football league are 'investigating'!
Thats said they havnt yet and i cant imagine they will!