Leeds United to sell ground as takeover collapses
Leeds United Football Club is to sell its ground, Elland Road, after a takeover bid by a local consortium led by Sebastian Sainsbury fell through.
Leeds chairman Gerald Krasner instead revealed that he is close to selling Elland Road on a sale and lease-back deal. The money raised from the sale is needed to pay the latest instalment on a loan to Aston Villa director Jack Petchy, which if not paid by close of play on Friday will trigger a £2m penalty clause, according to BBC Online.
Sainsbury, who is backed by the American-based Nova Financial Partners, failed to transfer £25m by 1pm today, sparking the need to sell the ground. However, Krasner is still hopeful that a deal can be sorted out in the consortium ‘over the next few weeks’.
Leeds United was saved from bankruptcy earlier this year when a consortium, led by Krasner, took over the ailing club, but relegation from the Premiership has plunged the club into more financial difficulty.