Another report on our new owners, your thoughts

Leeds United: Questions mount about GFH’s ability to move forward financially
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By awinehouse_spoughts / March 21, 2013 / Articles, Leeds United / Leave a comment
During the initial takeover process, there were increasing questions about GFH’s ability to fund the purchase of Leeds United. Obviously, anyone interested in Leeds United has seen the end result – that GFH did manage to fund the purchase of Leeds and that they own a 100% stake in the club. However, this does not mean that everything is hunky dory at GFH, which has become increasingly clear with the release of their accounts over the past few days, and a series of articles analysing them. One, by Exotix Credit Research, is of particular note (the full PDF is hosted here).

Here are some highlights (or lowlights, depending on how you wish to look at it):

Their now infamous reevaluation of the value of Leeds United (adding over $10m to the value paid to Ken Bates for the club) is called into question. The supposed “bargain purchase” is seen as “subjective” by Exotix, who are incredibly baffled at how GFH came to the conclusion. They highlight the lack of assets at Leeds, such as the club not owning its training ground or stadium. With a lack of independent valuation mentioned, Exotix call into question whether it was a fair reevaluation.
In another moment symbolic of the discrepancies in their valuations of assets, GFH hold 47% of Khaleeji Commercial Bank, listing it as worth $163m, which was the cost to GFH of purchasing it. It is, however, based on share prices, worth only $52m these days. The discrepancy is huge, with the 68% differential in value bringing an impairment charge on behalf of Exotix at the feet of GFH.
GFH’s restructured debts (which are inevitable, given in 2010 they lost $348m, which was following several years of losses as a result of the global economic collapse) will begin to amortise in 2014. This will require finding around $30m per annum to pay these off – something Exotix see as a “challenging” endeavour for GFH, given the nature of their books currently.
GFH has suffered significant cash flow problems over the last few years, and continue to do so today.
Most damningly of all, and to sum up the problems facing GFH, Exotix feel as though GFH’s reports of profits over the last year are simply the result of “financial engineering (i.e. fancy accounting)”.

 

And to think Bates said GFH were the only creditable buyers he spoke to, and the club would only be sold to buyers who had the money to invest and take the club forward. What he really meant was GFH were the only mugs willing to deal with him.

 

Well at least we know the club still doesn't own the ground.

 

What I know is, GFH are about to piss off with the thick end of £1K of my cash for next seasons season tickets!!!

 

No they're not Chippy, that money has already been allocated to the lot that Bates sold the rights to. He really did shaft us right up the jacksy.

Glad to have him out. No-one would ever have seen reduced ticket prices and attempts to get the fans back on board if he was still pulling any strings. And we would still never get out of this division with him at the helm.

If this lot manage a quick exit and we get in someone who has the club at heart and knows football, we can be very grateful. If their parent company goes bust and we go into admin again, we will be forced to dig deep again. And many many will. But Lord knows what division we would end up in. Or who would buy us out.

 

I don't bother posting anything sensible any longer...

I just want Ken Bates to die. Hopefully it will be a long
and agonising death.

Afterwhich i hope he gets buried rather than cremated.
Purely as this will afford me the luxury of being able to
piss on and defecate his grave.

 

That makes two of us mate

 

Then again, if Peter Ridsdale had never been born, we wouldn't be in the position we are now, and Bates would never have got the chance to inflict his poison on the club