Leeds owners look to reassure fans on plans for future after yet more confusion

A bewildering day saw GFH Capital attempt to reassure supporters of their commitment to Leeds in a club statement after its Bahrain-based parent Gulf Finance House (GFH) – of which it is a 100 per cent subsidiary – announced they were negotiating to sell their stake in the club’s parent company LUFC Holdings.

In a subsequent development, it was reported that parent GFH had all but completed a sale of the club, with Leeds-born multi- millionaire and lifelong fan Steve Parkin part of the bidders seeking to purchase the club, backed by Middle Eastern interest.

Parkin, who tried and failed to purchase the club in 2004, is believed to have been heavily involved with the bid for a majority stake in Leeds which was rejected by GFH Capital on February 10.

Parkin, the chairman of Brighouse-based distribution firm Clipper Logistics, declined to comment when contacted about the potential new offer.

It is understood that despite reports of a deal being imminent, it has not yet been concluded yet discussions are ongoing. The new bidders are believed to be dealing directly with GFH and not GFH Capital’s representatives and United club directors David Haigh and Salem Patel.

The future of United, taken over by GFH Capital three months ago today on December 21, had taken an initial twist when GFH revealed in their financial statements for the year ending December 31, 2012 that they were negotiating to sell their stake in the club’s parent company LUFC Holdings.

But in a club statement released yesterday afternoon, owners GFH Capital said they were looking to attract ‘strategic investors’ – and remain open to selling a minority stake in United – but insist they are not planning to sell up.

It read: “In March 2013, Gulf Finance House (GFH), parent company of Leeds United FC owner GFH Capital, published its financial audited report that stated it was looking to sell its stake in the club.

“To clarify and as previously stated, GFH Capital is looking for investment in part of its share in the club, not its entirety.

“GFH Capital has been transparent since acquiring Leeds United and is continuing to look for strategic investors in part of the club that can invest in Leeds United, alongside GFH Capital, to ensure a long-term, sustainable future.

“Since GFH Capital took ownership of Leeds United, it has fulfilled its promise of investing in the club, with around £10m having already been injected into the club; to strengthen the squad and for other working capital purposes.

“Additional financial support will continue to be provided as required.

“To date, GFH Capital has fulfilled the plans pledged and its strategy for the club remains the same; to build a group of strategic investors to put Leeds United in the best position both on and off pitch for the long term.”

The seeking of part-investment in the club is clearly at odds with statements in their parent companies’ financial statement for the year ending December 31, 2012, which included: “Subsequent to the year end, (GFH) has commenced negotiations relating to the sale of its stake in LUFC Holdings.”

GFH also said in their financial statements that they bought the club off chairman Ken Bates for a “bargain due to pressure on the sellers to exit their holdings due to a change in their business plans.”

Parkin is a name well known on the Yorkshire sporting scene, with the tycoon also linked with a move to purchase Bradford City and the Bradford Bulls to form a joint sporting club in a new stadium in 2011. He is also the current chairman of Blue Square North outfit Guiseley.

Alongside Parkin, ex-Leeds commercial director and former Hull City chairman Adam Pearson was touted as another possible figure behind the offer to buy Leeds last month.

But Pearson, part of a consortium who failed with a bid to take control of United when they were in administration in 2007, subsequently distanced himself from the stories.

It is understood that Pearson’s sole focus remains with Super League club Hull FC, which he runs, and his other business interests.