Football League gives amber light to Leeds takeover
Submitted by WG on Fri, 14/03/2014 - 06:41
A statement issued by the Football League after its meeting yesterday reads: 'At its meeting today, the Board of the Football League gave detailed consideration to the proposed takeover of Leeds United by Eleonora Sports Limited.'
'The Board discussed the eligibility of the proposed owners under the Owners' and Directors' Test and examined evidence of both the source and sufficiency of funding. [Translation: they have the readies]. The majority of outstanding issues have now been resolved to The League's satisfaction and the Board anticipate receiving further information on the remaining issues, from the representatives of Eleonora in the next week.' [We have to wait for the court case in Sardinia].
'The Board recognises the pressing need to resolve the matter [Leeds are up the creek and need a paddle] and to provide certainty to all parties it therefore anticipates being able to reach a conclusion in the next ten days.'
Leeds managing director David Haigh has denied rumours that the club may go into administration. He told the Yorkshire Post: "The club is in good hands. It has money and there is no chance of the club going into administration. None whatsoever. I keep hearing these whispers, where people have put two and two together to make 550. We had a winding-up order recently, which caused fans to panic.
"But the club is not in any kind of precarious financial position. Either now or in the future. It is not true and never has been. As a director of a company, there is a test of solvency that you have to go through. Can the company meet its debts, as and when they fall? And yes, Leeds United can."
Prospective new owner Massimo Cellino earlier this week revealed his frustration at the situation, telling The Sun: "It has been a black hole and things cannot carry on like this.I have to wait for the decision of the Football League before I put any more money in. I want to help Leeds and get to work, but I cannot do any more until I am the owner."
Whilst there is no immediate threat of administration, there have been cash flow challenges and the club would be in difficulty if the takeover failed. It now seems more likely than not to go ahead.
