How are we in the financial mire again?

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Deleted User 1076

How are we in the financial mire again?

Post by Deleted User 1076 »

I really don't understand just how we can be in this position once again. It will be interesting to see the clubs accounts when they come out.
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Aces
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Re: How are we in the financial mire again?

Post by Aces »

davidbattyspants wrote:I really don't understand just how we can be in this position once again. It will be interesting to see the clubs accounts when they come out.
I don't understand either mate, I thought after the Risdale & Co's fiasco, it wouldn't be possible to happen again, surely safeguards against it happening were insisted upon, as part of the last survival package.
We are Leeds, we have to believe our new players are good enough, encourage and support them and help them grow in to a team to be reckoned with. MoT
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oxblood
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Re: How are we in the financial mire again?

Post by oxblood »

It looks to me if Cellino doesn't take over we are bankrupt, again! The story in the YEP says some suppliers havnt been paid since October. WTF is happening at ER. Flowers was right to say its a fire sale, it is, it's fact.
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Re: How are we in the financial mire again?

Post by isrodger »

oxblood wrote:It looks to me if Cellino doesn't take over we are bankrupt, again! The story in the YEP says some suppliers havnt been paid since October. WTF is happening at ER. Flowers was right to say its a fire sale, it is, it's fact.

One word BATES. And then GFH have been unable/unwilling to prop up the cash flow.
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Mellor
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Re: How are we in the financial mire again?

Post by Mellor »

You can't blame Bates for GFH buying something they can't afford to run.

GFH poured over the books for 6 months. That's the equivalent of asking the RAC to check a car 180 odd times before you buy it. They were in full possession of the facts. If they weren't they are extremely poor businessmen.

GFH appear to have no idea how to manage a football club. When they released Warnock they allowed his replacement to buy almost another full team including the eye catching/PR exercise of signing the million dollar man. They also made a big thing of retaining Ross. In the bowels of football where we play clubs sell to survive - Burnley sold Austin for instance.

I could go on but GFH bought into a difficult situation, just about every club outside the top few in the Prem is in a difficult situation, and made it worse. There was always a 1 in 3 chance that would happen and a 1 in 3 chance it would improve. GFH tried, failed and the sooner they move on the better.

PR, cheap tickets and concessions does not make a successful business. Capital to see through any shortfall, a good manager, a successful team, a cup run and so on do.
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johnh
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Re: How are we in the financial mire again?

Post by johnh »

This is just my opinion, thinking out loud really. When GFH Capital took over Leeds United it was more an ego trip for Haigh and Patel. They obviously 'sold' the idea to their parent company GFH. In spite of the time it took to do due diligence, there seems to be financial problems of an unexpected nature. Maybe Haigh was so keen to push the deal through, that they overlooked some of the due diligence issues. The parent company GFH lost patience with GFH Capital and told them to get shut, pronto, and at the best possible price. Haigh was desperate to keep involved and linked up with the Consortium, but it does appear that Cellino's deal is the best for GFH. No consideration whatsoever for the future of Leeds United. Could be wrong, of course.
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Re: How are we in the financial mire again?

Post by dlw10 »

I don't think we can say they rushed due diligence....they took six months or more over it! I believe you may be near the mark though with who really wanted it. My belief is that Haigh always believed he could put together a group of businessmen but he needed to wrest it from Bates first and he persuaded GFH that they could make a short term profit in the meantime by buying it and then quickly offloading it to Haigh et al. Hence the "held for resale" note in the first GFH accounts we saw. It nearly worked as well - we knew nothing about the club being in trouble last November when the deal with Haigh should have gone through. It didn't of course because the Sport Capital due diligence fronted by Flowers as we now know, found things didn't look quite as good as Haigh had led them all to believe. All speculation of course.
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NottinghamWhite
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Re: How are we in the financial mire again?

Post by NottinghamWhite »

Will we ever get to a point on the forum when all we talk about is football ?
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Sheepy
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Re: How are we in the financial mire again?

Post by Sheepy »

I think if Cellino does not buy us the consequences are unthinkable...
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NottinghamWhite
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Re: How are we in the financial mire again?

Post by NottinghamWhite »

Sheepy wrote:I think if Cellino does not buy us the consequences are unthinkable...
Can't be bothered trawling through loads of posts but I said awhile ago that administration was very much a possible outcome of this whole fiasco. I also think that Cellino won't be in for the long haul but instead buy us cheap get us promoted and sell us on for considerably more than he's paid or will invest.
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