Leeds take Cellino’s loan with deal still up in air

The controversial Italian, waiting to exchange contracts with United owners Gulf Finance House (GFH) after agreeing terms late last week over a £25m takeover deal for a 75 per cent stake, had a £1.5m loan accepted last week by the Elland Road hierarchy.

The payment is believed to be separate to the money Cellino – who courted Sheffield Wednesday prior to switching his attentions to Leeds last autumn – has earmarked to purchase a majority shareholding in United, subject to approval from the Football League.

United’s bosses, who have made no secret of the fact the club is operating at a loss, have accepted several other loans in the past year to help with running costs.

In October, Leeds borrowed an undisclosed sum from Dubai-based company Berrydale Seventh Sport Holdings, four months after receiving cash from Brendale Holdings, also in Dubai – with managing director David Haigh sanctioning both payments.

The Sport Capital consortium, whose bid to take over United collapsed last week, are understood to have also invested some £6m into the club after being established by Haigh in October.

Meanwhile, representatives of two rival consortiums who have joined forces in a last-ditch bid to wrest control of United away from Cellino, met in London yesterday.

They have pledged to match the offer made by the Italian, whose shock sacking of manager Brian McDermott on Friday evening drew a furious reaction from United supporters, with his reinstatement having in no way managed to pacify them.

Andrew Flowers, who fronted the Sport Capital bid, has teamed up with former managing director of Manchester United International and ex-Sunderland marketing chief Mike Farnan – whose Together Leeds consortium saw their quest for control rejected by GFH in November – with the purpose of usurping Cellino’s takeover.

In a separate development, United shirt sponsor Enterprise Insurance are reported to have issued a winding-up petition against the club for an alleged unpaid debt, with the petition due to be heard in the High Court next month.

It was issued by Enterprise boss Flowers last Wednesday when his consortium’s takeover bid hit the wall following disagreements with GFH. It is seen as a tactic designed to delay any sale of Leeds to Cellino, effectively buying time for rival bidders to attempt to push through their own plans to purchase the club.

Regardless of that development, Cellino still appears to be in the box seat regarding the battle to take over the club and remains confident over his prospects after agreeing terms with GFH.

Speculation that Cellino is unlikely to pass the Football League’s Owners and Directors’ Test, formerly the Fit and Proper Person’s Test has been challenged by an investigation by a national newspaper.

It reports Cellino, despite two previous convictions for false accounting in Italy and a reported arrest on suspicion of embezzlement in 2013, would still be able to buy United with his first conviction in 1996 expunged on appeal and the second offence in 2001 considered as spent under English law – specifically the Rehabilitation of Offenders Act (1974).

That effectively means Cellino is under no obligation to disclose the charges and the offences should no longer be held against him in any way. It is understood Cellino’s lawyers have presented a case to the League arguing that he cannot be barred from owning Leeds due to the past offences.

The threat of proceedings following Cellino’s arrest last year on suspicion of embezzlement is also not considered a barrier to him completing any purchase of Leeds with no measures preventing people taking over a club if they are under investigation or facing charges for an alleged criminal offense of dishonesty.

Under League rules, people are regarded as innocent until proven otherwise.

The League are still considering the bid from Cellino’s company Eleonora Sport Ltd before deciding whether he passes the test.

The Cagliari owner, based in Miami, does not foresee any problems regarding meeting League criteria and is quoted as saying: “I’ve had 22 years as an owner in Italy where regulations are much stricter than in England. I don’t see why this should be an issue.”

Besides awaiting approval of his purchase of United from League authorities, his other major hurdle is getting the required signatures from GFH officials to seal the takeover.

As far as the 57-year-old is concerned, a deal was struck to purchase 75 per cent of the club last Friday with United chairman and GFH shareholder Salah Nooruddin.

But the deal is still waiting to be signed off with Cellino and GFH yet to exchange contracts, prompting the rival group involving members of failed Sport Capital and Together Leeds consortiums to join forces in an attempt to hijack the Italian’s bid and secure a controlling stake in the club.

Claiming a deal was struck late last week, Cellino said: “The money was paid on Friday. Me and the Bahraini (Leeds chairman Salah Nooruddin), we’re serious people.

“Between us, there is no problem. But in the middle, there is a problem, there is a lot of s*** going on.

“The Bahraini trusts me and I trust him. He could have done other deals, but chose me because I showed I can run a club.”

Meanwhile, Cellino has been frantically attempting a charm offensive after what amounted to a public relations calamity in sacking McDermott via a phone call from his lawyer Chris Farnell.

The Cagliari owner has told one national newspaper that he plans to return Leeds to their former glories.

The agriculture magnate said: “I already love this club and want to do something right for it.

“I want to get it back where it belongs, in the Premier League.”

It has been confirmed that Cagliari midfielder Andrea Tabanelli, who joined United on loan on Friday, will not be training with the club until his move is ratified by the Football League.

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