GFH ville selge så fort som mulig, og ble desperate - STATEMENT:
Gulf owners planned to flip Leeds Utd “like an off-plan apartment"The controversial buyers of Leeds United planned to flip the soccer club “like an off-plan apartmentâ€, according to a source close to the deal.
Leeds United was taken over by GFH Capital in November 2012 in a deal reported to be worth over $50m. But insiders close to the take-over have told Arabian Business that not only was the purchase price “around the $30m (£18m) markâ€, but the intention had been to offload it “almost immediately.â€
“That was the plan. They were actually cold-calling potential buyers just as the deal to buy it was done. They saw Leeds rather like an off-plan apartment that you can buy and flip the next day for a tidy profit,†says a source.
The takeover deal by GFH Capital – a subsidiary of Bahrain-based Gulf Finance House – was officially announced on November 21, 2012. At the time, David Haigh, deputy CEO of GFH Capital, said: “After a long process of negotiations, spanning Leeds, London, Monaco, Dubai and Bahrain, it gives us great pride today, to have completed the deal for Leeds United. We have today injected further funds into the club and now we look to the future and start the exciting journey to take Leeds United FC back into a prime position in English football once again.â€
However, in the 2012 accounts for Gulf Finance House, the company revealed it had booked a $10.39m plus profit on the deal – helping Gulf Finance House swing into a profit of $10.03m for the year.
The company said in its 2012 accounts: “The acquisition of LCHL resulted in a bargain purchase and the Group has recognised negative goodwill of US$10,369 thousand which is included in the income statement under ‘Gain on acquisition of assets held-for-sale’. The bargain purchase was due to pressure on the sellers to exit their holdings due to change in their business plans.â€
The annual report also stated: “This has truly been a remarkable year for GFH. The bank has returned to its profitable ways, successfully executed its restructuring plans, and continued to deliver unique investment opportunities that serve as a testimony to the Bank’s dedication in creating value to its shareholders and investors.â€
Last August, in an interview with Arabian Business, Haigh, by then appointed managing director of Leeds United, said: “People ask ‘why Leeds?’ And the short answer is because it’s Leeds United, full stop. Leeds is very special. It’s got a phenomenal history and we want to bring back those glory days. It’s got global reach on a par with top Premier League clubs, and it’s a fantastic investment opportunity in a sector which could gain the interest of new investors, as well as being good fun.â€
In fact, plans to offload the club were already underway. In March 2013 GFH Capital sold a 10 percent stake to Bahrain’s International Investment Bank (IIB) for an undisclosed amount. On Friday, GFH completed a deal to sell a 75 percent stake to Italian tycoon Massimo Cellino, whose family own Eleonara Sport Ltd.
In an emailed statement on Sunday, GFH Capital SEO Jinesh Patel hit back at the suggestion the company had been trying to flip the club. He said: “We have been highly selective in the approaches we have considered for ownership in the club. We have not only had approaches from the UK-based groups, which have been widely reported on, we have also had several serious approaches from very wealthy individuals and organisations from the Gulf, Europe and Asia.
“Our decision to move forward with Eleonora Sports was a result of the commitment they have shown to the club from the outset and their willingness to run Leeds United as a long term proposition. Retaining a 25 percent stake, GFH-Capital also remains a committed investor and will continue to work closely with Eleonora Sports to ensure a prosperous future for the Club and this partnership. "
On the issue of seeking to bring in additional investors and the bank's efforts to make a profit from this investment, Jinesh told Arabian Business: “GFH-Capital is an investment bank and the acquisition of Leeds, as with any investment, was undertaken with the intent to create value and realise profits for the bank and our shareholders. Likewise, with any acquisition, we invite key clients to participate, whereby early on IIB and Salah Nooruddin, investors long known to us, acquired shares alongside us.
“These transactions were in fact profitable for the bank, as partners were invited to participate at a premium. We are proud of the partnerships we have created at the Club level, including most recently the addition of Eleonora Sports and Mr. Massimo Cellino, who has extensive experience and an owner of the Serie A Cagliari football club for more than 20 years."
Asked whether the purchase price had been $30m, Jinesh said: "The amount invested in the club was in excess of $50m, whereby GFH-Capital had to clear significant liabilities which were built in the club."
Following the deal, Haigh resigned as managing director of the club, saying in a statement: “I had to deal with and manage what can only be described as the crazy situation of very limited support from those who should have supported the club and the management, whilst at the same time having little or no decision-making ability. On occasions this resulted in my paying club running expenses on my personal cards and last-minute dashes to wire personal money to the club to pay the HMRC.â€
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