Leeds United on brink of insolvency
Former chairman issues dire warning on football club's financial situation as relegation looms
Former Leeds United chairman and insolvency practitioner Gerald Krasner has
said he is 90% certain that his former club will enter into administration in
the next few days.
Club officials have refused to comment on media speculation that Leeds, which
is set to be relegated after its last game in this season’s Championship, would
enter into corporate insolvency.
However, Krasner, who works in insolvency for Leeds firm Bartfields, says
that he expects the club will enter into administration in the next week, unless
an investor bails out the club. A relegation would certainly put the club under
immense financial pressure.
In Krasner’s tenure as chairman, the club’s debts were reduced to £20m,
having hit nearly £100m under its previous owners. He rescued Leeds from almost
certain administration in March 2004 when securing a £22m takeover of the club.