Thu, 13 Mar 2014 | ADMINISTRATION
Leeds United’s managing director has moved to rubbish claims that the club is on the brink of administration.
British businessman David Haigh, who became the managing director of Leeds United on 1 July 2013, has assured everyone involved with the football club that it is under no risk of entering administration. Breaking a long period of silence, Haigh 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.”
Rumours about the future of the Yorkshire-based team had been circling amid news that the Football League board was meeting today (13 March) to discuss Massimo Cellino’s attempts to buy a 75 per cent stake in the Championship side through his company, Eleonora Sport Ltd.
Cellino’s purchase of the club, it had been suggested, needed to go through in the near future to save the club from falling into administration. However, it is unlikely that a decision on whether or not the Italian, who also owns Serie A side Cagliari, passing the governing body’s new owners and directors’ test will be made until next month.
Cellino is trying to purchase the club from the Gulf Finance House – the Bahrain-based investment bank that bought United from Ken Bates towards the end of 2012 – with contracts already exchanged early last month.
Regardless of the time scale it takes for the takeover to be completed, Haigh firmly stated that the club’s future was secured. He said: “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.”
Furthermore, Haigh, 36, went on to defend the club's finances despite the fact that it is openly known that it is losing in the region of £1 million a month. He said this was common practice among clubs playing in the Championship and that his confidence in the club’s long-term future is reflected in the fact he has loaned £2 million of his own money to Leeds United.
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Related information:
We recently covered a story about how, unlike Leeds United, Corby Town Football Club is on the brink of administration. If you want to learn about how you could profit from buying a distressed business, click here.
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