Cellino sees scale of challenge as he completes deal for Leeds United
MASSIMO Cellino completed his deal to buy Leeds United and immediately got a taste of the challenge that lies ahead as the club plunged to its eight loss in nine games and off the pitch announced losses of £9.5m.
Italian Cellino, who also owns the Sardian club Cagliari, officially completed his takeover at Elland Road on Tuesday, with the businessman’s lawyers, Mishcon de Reya, confirming the news which should remove the looming threat of administration over the Championship club.
He agreed a deal to buy a 75% stake in the club from Gulf Finance House through his company Eleonora Sports in February but his takeover was vetoed by the Football League in March.
He is now hoping the Football League will ratify his takeover – which was initially rejected after the Italian was convicted of avoiding tax payments on a luxury yacht – at a board meeting on Thursday after winning his appeal against its decision.
Cellino has been funding the club since his offer was agreed two months ago.
While the future of manager Brian McDermott is in question following the comprehensive 3-0 loss at Watford last night, the club posted pre-tax losses of £9.5m for the year to June 30 2013.
Turnover fell by £2.5m to £28.5m, while attendances dropped by almost 8% as the wage bill rose to £20m from £17.8m.
The period includes the club’s takeover by Gulf Finance House from former owner Ken Bates in December 2012.
Leeds were loaned around £11.3m by Brendale Holdings Limited, a Dubai-based company which is controlled by GFH.
The accounts show that at the end of the financial year the club had no majority owner as GFH sold more than 50% of their stake to different parties before buying it back at the back end of 2013 prior to the sale to Cellino.
It is believed the club owe more than £30m to creditors and is losing around £1m a month and Cellino will now have to bring the debt down if Leeds United is to comply with the Football League’s Financial Fair Play regulations.
Last month the players agreed to defer a part of their wages as the club dealt with cash flow problems and there was a danger that the club could have fallen into administration.
