Shepherd takeover out of the question say Leeds United
Freddy Shepherd will not be given the option of buying Leeds United after the club insisted a takeover was out of the question.
Shepherd, the former Newcastle United chairman, is keen to invest in Leeds after leaving his post at St James' Park earlier this year, but United will not entertain any offers for a controlling stake at Elland Road.
Leeds moved to clarify their position today amid growing expectation that Shepherd will step forward with an investment proposal early next year.
Shepherd pulled in around £37million by selling his shares in Newcastle to current owner Mike Ashley, and he recently confirmed that he was ready to resume his involvement with professional football, describing the sport as "a powerful drug".
He and his son Kenneth are understood to have met with Bates in Monaco last week, and Shepherd has been considering his options ever since the possibility of investment was first raised over dinner with Bates on Tyneside in September.
Leeds are a private company and their entire shareholding was acquired by Forward Sports Fund - the Swiss-based firm through which Bates took control of Leeds in 2005 - following their exit from administration in August.
Bates intends to retain at least 51 per cent of the club's shares, providing him with a controlling interest, but he has been seeking serious investment ever since his arrival at Elland Road, and the recent discussions between the 75-year-old and Shepherd suggest a deal is increasingly likely.
Shepherd would look to acquire at least a 25 per cent stake to make his investment worthwhile, but would not be allowed to take his holding beyond the 49 per cent. United reiterated today that Bates has no intention of cutting his ties at Elland Road in the foreseeable future.
Any attempt to sell the club would be complicated in any case by the terms of the deal which took Leeds out of administration earlier in the year.
United agreed to an 'anti-embarrassment clause' which stated that, in the event of a sale, 50 per cent of a takeover fee above £5million would be shared among the club's creditors. The clause expires next summer and realistically rules out the possibility of a sale until the end of this season at the earliest.
Bates is continuing to pursue ambitious plans to develop the area surrounding Elland Road, as he did with Stamford Bridge during his time as Chelsea chairman, and he would place a high price on the debt-free club. It is understood that a 25 per cent stake could cost Shepherd as much as £10million.
But despite their meetings, sources at Elland Road claimed that an agreement between Bates and Shepherd was "a long way" from being finalised, and Shepherd has almost certainly been made aware of Bates' stance over the division of United's shares.
The former Newcastle chief could yet be drawn to another English club, and he has been linked with Sheffield Wednesday this week. Shepherd is also understood to have considered a bid for Ipswich Town, but his interest in Leeds is serious.
United chief executive Shaun Harvey said: "We've previously stated that investment would be welcomed. A takeover is not an option."
YEP
