David Parkin on the Leeds United kerfuffle and seeing an old friend

THE first rule when you are doing a deal – whether you are buying a bungalow or a multi-billion pound international business – is never predict when it will happen.

Those of us whose deals extend to a semi-detached rather than cross border M&A work, know all too well that these things never happen as quickly as you want them to.

And when reporting on big corporate finance deals, I’ve lost count of the number of times that the green light on publicising them has changed to a red because of some last minute hitch which saw both sides’ advisers return to the table to iron out their differences.

So why in heaven’s name did those involved in negotiating to bring new investors into Leeds United reveal back in November that the deal was close to completion?

It was naive to say the least. All it did was heighten the expectations of fans of the financially flailing football club who then expected that the new investors would inject a chunk of dough in January to bring in players during the transfer window.

And here we are just hours before the transfer window slams shut and the club’s current owners GFH Capital have yet to complete a deal and not only that, but appear to have switched horses.

Having spent weeks negotiating with David Haigh and Andrew Flowers from shirt sponsor Enterprise Insurance, they are now apparently in talks with Italian Massimo Cellino.

To say he has a ‘colourful’ past is putting it mildly. He has two previous convictions for fraud on his CV and is currently awaiting trial on embezzlement charges.

The Cagliari owner has sacked 36 managers in 20 years at the Italian club and apparently insisted on putting his representative, former Middlesbrough defender Gianluca Festa, in the dugout at Leeds’ midweek match.

Haigh, on the other hand, doesn’t offer much of a panacea either. Apparently he is due to stand as a Tory MP at the next election. So in addition to financial naivity, add political ambition to the CV of a would-be Leeds United director.

And then it has emerged that a group fronted by a former Manchester United director, Mike Farnan and, apparently including former Hull City chairman and Leeds United director Adam Pearson and Welcome to Yorkshire chief executive Gary Verity, are also circling.

Perhaps that was why I was summoned for a coffee with Gary yesterday. Fortunately he spent too much time on his iPhone for me to glean the subtly of his approach to get me to look at the financial state of the club.

What a kerfuffle.

What GFH and both the groups they are negotiating with lack is credibility and money.

As the biggest one club city in the UK, what Leeds United needs is a major investment to not just buy the club, but provide sufficient working capital to support the business and further funds to buy its Elland Road stadium and Thorp Arch training ground back.

What it has had for years is a succession of owners who haven’t been able to deliver the goods for a variety of reasons.

Clearly GFH thought the club worth a punt in a bid to flip it quickly and turn a decent profit. That hasn’t happened and they look like they don’t have either the funds or the interest to stay involved as the majority owner.

Sadly it looks like there is no one else that offers much better.

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IF you read last week’s missive then you may have seen that I’ve been away skiing. If you didn’t then you’ll know if you see me as I now creak when I walk and groan everytime I sit down.

What the trip did provide was two memorable experiences. Doing the Olympic bobsleigh track at Innsbruck was four parts terrifying and one part exhilarating as you hurtle at huge speed down an icy track sitting inside what appears to be little more than an extended tin bath.

And then there was the Hahnenkamm.

I’m told it is the downhill skiing equivalent of the Monaco Grand Prix.

A staggering 150,000 people gather in Kitzbuhell for the race, most having started drinking at 7am.

The atmosphere was buzzing and it attracts a celebrity crowd, including Formula 1 supremo Bernie Ecclestone, skiing legend Franz Klammer and Hollywood star Arnold Schwarzenegger, the world’s most famous living Austrian (name another one).

What that did do was allow me to recount my story about being the first British journalist to interview Arnie after he became governor of California, an opportunity afforded to me thanks to the patronage of the late, great Huddersfield-born entrepreneur Lord Hanson.

Sadly the power of social media meant that those back home learned of my storytelling and a message from former colleague Ian Briggs arrived back: “Is Parky still dining out on stories from 10 years ago?”

Well, I would just like to say that is completely untrue.

I actually interviewed Arnie eight years ago.

Did I ever tell you about it?

Have a great weekend.