(Reuters) - The Middle Eastern owner of Leeds United has signalled that it is in talks to sell the former English Premier League soccer club it bought only in December. Dubai-based GFH Capital purchased the club from majority shareholder Ken Bates at the end of last year after negotiations that lasted for several months. GFH Capital board member Salem Patel told a news conference at the time that it would not spend "crazy money" to restore the Championship (second division) club to the elite Premier League. Accounts published last month by GFH Capital's parent, Bahrain firm Gulf Finance House show that the new owner is preparing a swift exit. "The Group has an active plan to sell its stake in LUFC Holdings Limited, and accordingly, the asset and liabilities acquired were classified as held-for-sale and presented in the consolidated statement of financial position," Gulf Finance House said in end-year financial statements dated Feb 21, 2013. It added that it had begun negotiations related to the sale of its stake since the end of last year. BARGAIN PURCHASE The accounts show a net cash payment of $33.226 million to buy the business last year. Reports in December said the cost of the Leeds deal could be up to 52 million pounds ($78.6 million), but that figure was not confirmed. In its accounts, Gulf Finance House booked a goodwill gain of $10.369 million on the deal, and said "the bargain purchase was due to pressure on the sellers to exit their holdings due to change in their business plans." Leeds, which last won the English league title in 1992, are currently in 10th place in the Championship, outside the play-off spots for a lucrative Premier League spot. Contacted by Reuters, GFH Capital deputy chief executive David Haigh declined to comment, referring queries to the club. The club declined direct comment but pointed to an article published in the Guardian newspaper last month which said the new owner was seeking investors and would prefer to sell a 30 percent stake. It would consider selling a majority if the buyer had the funds to bring success, the report added. In a message to fans on Leeds' website dated Feb. 10, GFH Capital said it had rejected an offer for a majority stake in the club. "Although we continue to seek strategic investors, we will only bring on board those who we feel can make a positive contribution to the sustainable success of Leeds United." please log in to view this image http://uk.reuters.com/article/2013/03/19/soccer-leeds-idUKL6N0CBJ9O20130319
I agree, and there investment bankers so of course that's what there here to do but it seems a real quick flip
Accounts published last month by GFH Capital's parent, Bahrain firm Gulf Finance House show that the new owner is preparing a swift exit. Mamma mia you must have revolving doors at ER players,staff,managers,and now the owners cant get out quick enough, will the last person to leave please turn the lights out
Best proof there is that Leeds United Football Club is an asset with huge upside potential. Just needs an owner that is big enough to make it happen.
Best proof there is that Leeds United Football Club is an asset with huge upside potential. Wow i hope all our players staff,manager, and chairman **** off then so we can have huge potential too
First try to get an average of more than 1,000 fans to travel away with your team then come back and try to blow a different colour smoke.
please log in to view this image Leeds United owner GFH admits it is negotiating to sell its stake in the club. #LUFC Though Bahraini bank GFH purchased the Championship only bought Leeds United on December 21, it has now stated that it intends to sell its stake in the club for an immediate profit. In the company's accounts for 2012, GFH states that: "The Group has an active plan to sell its stake in LUFC Holdings Limited, and accordingly, the asset and liabilities acquired were classified as held-for-sale and presented in the consolidated statement of financial position. Subsequent to the year end, the Group has commenced negotiations relating to the sale of its stake in LUFC Holdings Limited." GFH has offered shares in Leeds to more than one party, but are understood to be close to reaching agreement with a consortium involving Yorkshire businessman Steve Parkin. According to several sources close to the negotiations, talks have advanced to a stage at which a deal had been agreed in principle, although final paperwork remains unsigned. If Parkin succeeds in completing the transaction, he plans to enter into partnership with an affluent Saudi investor. Former Leeds executive Adam Pearson will also form part of the consortium, taking on a day-to-day management role at the club. "On 21 December 2012, the Group acquired 100% stake in Leeds City Holdings Limited (LCHL), a holding company for a number of trading entities whose activities form the operations of Leeds United Football Club (LUFC) in the United Kingdom,' GFH's accounts said. 'The acquisition was carried out through LUFC Holdings Company, a company incorporated in the Cayman Island and a wholly owned subsidiary of GFH Capital Limited. 'The acquisition has resulted in the consolidation of LUFC as at 31 December 2012 and recognition of identifiable assets (including intangible assets and favourable lease contracts) of $ 88,319 thousand and identifiable liabilities (including contingent consideration) of $ 42,655 thousand, representing the estimated fair value less cost to sell of the investment. The acquisition of LCHL resulted in a bargain purchase and the Group has recognised negative goodwill of $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.'
Jonny we will have 32,000 away fans very soon so come back when you can paint a rainbow of a different colour
Firstly those attendance numbers were league only and secondly your plastic fans that go to Wembley, assuming you sell out your allocation, would not even raise your away league average attendance to that of Leeds United. Sorry mate, but you did get recognized for effort.
Jonny big mistake to mention plastics m8 cos if your plastics that attend away matches actually went to home matches youd have a full stadium every game i too recocnise your effort
Not that surprised, Patel did say in a interview a few weeks back that they were looking to sell the club for a profit as they were an investment bank.
My dad was in Steve Parkins box on Saturday. Steve was match sponsor at the town game and he's towns shirts sponsor (he refused to do business with ken bates who shafted him over in 2004)
Your definition of "plastics" must be very different to that of the rest of us. An improvement in the spelling of "recognize" would make me feel much more appreciated.
No surprise at all in reuters report. Critical that new owners will have a football knowledge and deep pockets. GFH did a very useful job eliminating bates from the scene but they cant go soon enough. Clearly out of their depth, no idea how much rebuilding a team will cost and depending on Colin to help select our next manager. Glad they arrived when they did but away now please, time to move o to your next project
