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Wednesday, 20 March 2013

Will we see a Fire Sale of Leeds United's players by GFH Capital?

How disgusting. If the rumours are true, it seems GFH Capital only bought Leeds United with a view to turning them at a profit.

I always warned that the deal stank, and that protracted negotiation period is now possibly explained. The bank built on sand was probably looking for a buyer even as they were running down the exclusivity period, ignoring the needs of the club for stability in order to turn a fast buck.

Remember what happened? The take over seemed to be going nowhere, then rumours of other interested parties emerged and suddenly the deal was closed. The trouble is, those interested parties have since run for the hills, leaving a potentially cash strapped bank holding an unwanted trading chip that nobody else seems keen to buy.

And now the news is out, what strategy would you use if you wanted to buy the club? Wait. The longer the Arab bank holds on to the asset, the more desperate they will be to sell it. And if investors take that approach, poor Leeds fans could see their new owners selling players in order to asset strip the club ahead of a fire sale sometime next year.

Byram to Man City? It looks odds on to me now. If they are struggling to turn the business, why shouldn't they milk the business? The cash cow of the Prem is out of reach, but the cash cow of moveable assets is there for the taking.

Worrying times if you are a Leeds fan. And I warned about this before the take over was completed but too many Leeds fans had oil in their eyes to see.

29 comments:

  1. I always warned hahaha!!! Tosser!!

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  2. Absolutely spot on, and Im a Leeds fan.

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  3. O.k partridge needless to say you had the last laugh!

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  4. This is a window to how football in this country is heading... The FA & FL are too weak to stop it happening, they only want the cash from SKY, you only have to look at Portsmouth to see this. I only hope we and other clubs dont go down this road but with the useless prats running football I will not hold my breath..A very unhappy Leeds fan.

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  5. Your are wrong...!!! 99.9% of fans always knew this was doomed & it was not the oil that got in our eyes... we would of taken a sale to the Devil to get rid of Bates... he has killed our great club. We keep hoping we are all going to wake up from this bad dream... but unfortunately it's true even the bit about a manager called Warnock & his ego.

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  6. I for one did not believe the hype.i really wanted to think,here comes a company that will invest in leeds united,to get us back to the promise land.but as soon as the transfer window ended,and i looked at the players brought in,and obviously becchio going to our leeds reseves in norfolk.it was then i knew gfh werent in this for the long haul.again as leeds fans,we have well and trully been shafted.

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  7. Mixed emotions. It is on the one hand great to see somebody put one over on Ken Bates but share the concerns of the author in terms of the medium term future of our club. Who will wnat to manage us now? The likely outcome is the owners will ask the incompetent Neil Warnock to stay on and bring in overage players to replace those which they will sell to increase their return on investment. I read with interest that Ken Bates mortgaged future season ticket sales to fund the East Stand development. Is this not very similiar to what Risdale did??? Let us hope (and pray) that somebody with funds and good intentions reads the announcement and acts quickly. Otherwise at least another year in mid table or worse is our destiny

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  8. Whilst you may be right about forcasting this, what alternative did we have as fans, like government, unless you are the one with pots of money you are going to get shafted and have to accept it. The world has gone mad not just football.

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  9. Very worrying indeed and I'm one of many who just want someone at the clubs who cares one bit about the club.I do however think you need to be careful with your generalisations .Me and many others treat everything that happens at Leeds with suspicion and that includes gfh. There has been suspicion from the start.

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  10. They are an investment bank! I find it strange that some people think they were in it for the long run! And for an investment bank they have done more in 3 months than Bates did in 8 years!!

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  11. Fire sale?! Byram is the only player we have worth selling! Hardly a fire sale is it? And lets face it - we all knew he'd be going anyway ( just not to Norwich this time )

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  12. There's never been any oil in my eyes hf! As a father to two daughters, the thought of LUFC being owned by people who's main intention is to help prop up backward islamic ways as never appealed, Hence I've not spent a penny on going to ER or on merch since this lot took over. If (when) they do asset strip there's nowt I or anyone else can do about it. I just can't wait to see the back of them.

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  13. Oh wise one, we should have heeded your warning!

    Who cares if the club is flicked on ? Bates has gone, a new owner may have more money to invest.

    It's a hell of a lot more worrying to be a West Ham supporter. Leeds may go up, West Ham may go down...who would you rather be HF? After all, you appear to support both clubs.

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  14. You dont know anything hf.guessing like the rest of us.get a grip

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  15. Absolutely ridiculous! Bates clearly said he would not sell to anyone unless it was for the good of Leeds United. Since administration several offers had been made for the club. Why on earth would he sell to an investment bank whose sole intention was to asset strip and immediately sell on at a profit?

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  16. Koh Samui Whites20 March 2013 at 13:40

    We have a team of second rate journeymen.A fire sale would not be a bad idea.I doubt we,d be able to move any of them on. The youth team is our only saving grace(till they get old enough to sell of course). I never thought i,d ever think it but i genuinely believe we are heading for the abyss with all the other mediocre also rans that no one cares about(west ham,norwich etc etc).

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  17. Not worried about it at all. The only surprise is that you're surprised.

    It's been 'worrying times' for a decade. We're immune to the childish shock and awe type articles you specialise in.

    You know so much about what's gone on but at the same time know so little.

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  18. GFH, David Haigh, tory boy.....and you know what they say...never trust a tory!

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  19. What would be the point of selling off the players .The club would go into freefall again and be worthless why wouldn't they do it properly and build the club to the stature it once had and in turn make the profit it needs .Gaining promotion is a must and if that happens would attract better players ,better crowds and in turn more money.

    MOT

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  20. BANDWAGON !!! THAT'S ALL YOUR ON MATE,, YOUR LIFE WOULD BE MEANINGLESS IF YOU DIDN'T HAVE LEEDS UNITED

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  21. don't give me that. i told you the business side from the very start. You're too dumb to work it out!

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  22. GFH untangled the finacial web spun by Bates...
    It will be much easier to sell the club now and there are many interested parties. Byram will not go is asset value is clearly appreciating and will peak when he is 24 y.o. so there is no fear of GFH selling him.

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  23. Its just been on newsnow that gfh,are still commited to leeds united.they are looking for major investment to move the club forward,but they arnt looking to sell.they have ploughed 1o million into the club so far...but im struggling to work out,what that ten million has got us...any ideas anyone????????

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    1. Just to be specific, GFH Capital remain committed to Leeds United, GFH the parent company are selling their share ... just be careful of the GFH , GFH Capital distinction.

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  24. GFH will not have a fire sale! When your selling a house HF you keep the kitchen and the bathroom intact you don't sell them off individually! otherwise you lose money!
    You can get rid of some of the driftwood from the garden but not your major selling points! hence Byram et al will stay!!

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  25. Actually GFH are selling their share of Leeds United Holdings ... GFH Capital will retain the majority share holding of Leeds United Holdings. So Leeds are not for sale, just a stake in the club, true to the statements David Haigh and Salem Patel, of GFH Capital, have made since acquiring the club. Nothing has been different at Leeds for the last 3 months since GFH-C acquired the club.

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  26. With respect guys, you are being incredibly naïve. Why have GFH Capital made that statement? For the very reason I identify in my article I suspect, to try to calm the speculation and say, we don't need to sell. Buy that line if you like, but I don't.

    As for Byram, his sale wouldn't change the club's value that much. Player's values are written down in relation to their contract, and asset value is calculated as a multiple of that salary. On the books, he is worth very little; if sold, he will repay GFH Capital approximately one third of what it cost them to buy the club.

    As for the £10m injection, where did that go? To Master Bates perhaps, as part of the deal, whereby GFH Capital took responsibility for outstanding debts? Presentation, it's a clever weapon and, unfortunately, the desperate too often impale themselves upon it.

    Time for a few predictions:

    Byram will be sold this summer.

    Leeds United won't be sold this side of Christmas.

    Revenue from the Byram sale will not be reinvested in the squad.

    Leeds fans will be talking of the good old days when Bates owned the club before a new "investor" is found.

    GFH Capital will model the business based on staying in the Championship until they find a buyer, and so only free transfers will arrive this summer. The bulk of the present squad will still be at the club come the big kick off in August because they don't carry a transfer value.

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  27. Byram could command 60-80k per week with Man City say 70k x 52
    gives a yearly salary of 3.64 mill on a 5 year contract gives an asset value of 18.2 mill yeh hf "worth very little" ??? lol
    not taking into account his wage rises during that 5 years!


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