Leeds confirm Bates talks

14 April 2012

Leeds have opened negotiations with former Chelsea chairman Ken Bates over a potential investment in the debt-ridden Elland Road club.

Bates was recently linked with Sebastien Sainsbury's failed £25million takeover bid, only to deny any involvement with the great grandson of the supermarket founder.

But Leeds spokesman Bryan Morris said: "We are still talking to all consortia and Mr Bates is one of those.

"No deal has been finalised, but as soon as negotiations have been concluded we will issue a further statement."

When Bates' name first surfaced in connection with Sainsbury, it was suggested for his £10million stake he was after a 51% holding in Leeds, along with the chairmanship.

Bates has made it known, since parting from Chelsea just over 10 months ago with a £17million pay-off from current Chelsea owner Roman Abramovich, he is eager to return to football, and with money burning a hole in his pocket.

The 73-year-old long courted Sheffield Wednesday, only to find his money was not welcome by chairman Dave Allen and the rest of the Owls board, despite the club's debts spiralling to over £25million.

But with Leeds still heavily in debt to the tune of £25million themselves, and with the current board desperate to find a buyer or secure investment with administration looming, Bates could prove the 'saviour' they have been seeking.

To date, 13 potential consortiums have sounded out Leeds since chairman Gerald Krasner took control 10 months ago, but all have walked away after assessing the burden currently being saddled.

Norman Stubbs, a Leeds-based property developer, has been involved in negotiations with Krasner for some time and is currently in the process of putting a deal together.

Stubbs' bid amounts to an investment of around £10million, which could be more if Royal Mail chairman Allan Leighton -a former deputy chairman at United as part of the eventually ill-fated Peter Ridsdale regime - decides to offer his firm financial support.

Stubbs' group has already completed the due diligence process and is currently in talks with Leeds' creditors - former players and managers, the Inland Revenue, Customs & Excise and the bondholders - with regard to restructuring the debts.

It has even been mooted, with Stubbs a week away from deciding whether to step in and help Leeds, Bates could jump on board and with his own investment gain the control he is seeking.

Stubbs and Bates at least offer options for Krasner, who it is understood also met with a group of London businessmen this week considering their own takeover.

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