January 31 – The management-led buyout of English Chamoionship club Leeds United has fallen apart with the incoming consortium Sport Capital, headed by Leeds managing director David Haigh, failing to conclude a deal to buy 75% of the club from Bahrain-based investment bank GFH Capital.
Haigh blamed the failure on some of his constortium’s backers pulling out of the deal. A statement on his personal website read: “We [Sport Capital] signed a share acquisition agreement with GFH Capital at the end of last year. This meant, I believed, that we were in a position to move things forward and complete the transaction in time for the January transfer window.
“Unfortunately, however, some of the consortium’s backers ultimately didn’t feel able to deliver the financial backing we had hoped was agreed to take the club forward.
“I have met many, many potential investors over the past year and, sadly, while many are keen to talk the talk, they have been unable or unwilling to deliver in financial terms.”
GFH are believed to be in talks with another consortium another consortium led by Manchester United director Mike Farnan for a majority share in the club, as well as having approached president of Italy’s Serie A club Cagliari, Massimo Cellino.
The Sport Capital bid was backed by Andrew Flowers, the managing director of Leeds’ shirt sponsor Enterprise Insurance, who said that GFH had “breached their covenant with us” after inviting a rival bid from Massimo Cellino. It is the uncertainty surrounding GFH’s other discussion that is being blamed as the reason for the pull-out of Sport Capital’s backers.
Sports Capital had already provided “substantial sums” to the club, according to Haigh. The amount and status of those monies has not been revealed.
Haigh was part of the original GFH Capital consortium that bought the club from Ken Bates in 2012.
A GFH Capital statement said: “GFH Capital can confirm that we are in continual discussions regarding the introduction of new investment into Leeds United.”
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