New Bidder Speeds Up Leeds United Takeover Talks TSS September 20, 2012 Leeds United 82 Comments Neil Warnock today moved to ease growing tension amongst the Leeds United fanbase, revealing that the club should have positive news regarding takeover talks in the next 10 days. It’s now believed however that the previous consortium bidding for an outright purchase of Leeds United has been cast aside as Ken Bates tries to maintain a stake in the club. Yorkshire Evening Post sports editor Phil Hay believes members of the previous consortium – who were fronted by GFH Capital – have teamed up with a new party to offer Ken Bates an alternative proposal. It’s believed the newly formed alliance is of Saudi Arabian origin. Writing for the Middle Eastern newspaper The National, Duncan Castles claims the new bidders seek to buy half of Ken Bates majority shareholding now, followed by the remaining shares when he chooses to retire. This newly proposed deal will allow Ken Bates to retain some control of Leeds United Football Club for as long as he likes, while also delivering the investment so desperately needed at the club. Craig Millward As long as he likes… as long as it takes us to get promoted, thus maximising his return? Danny Cable I could live with that….. mattbb2 i couldnt, where do you think all the money sent to ER for buying players will end up? here’s a clue, it wont be spent on players. marccollins62 Bates will take this new offer in a heartbeat. Its obvious he never wanted to leave just wants someone else to pay so he can keep his toy. Bad news! All we can hope is that NW will at least be given some money for players… if he stays! Colin So if I understand this right, Chairman Ken wants to continue to run our football club, continue to take money from our profits and engage in stupid ventures. But doing it on a bigger scale and funded by someone else’s money? TSS Pretty much. At least he’d no longer have total control, which can’t be a bad thing. Colin Is this not like the situation with Matthew Harding at Chelsea? Ie. Takes someone else’s money and does what he likes and then blames the other person. TSS No, Bates remained majority shareholder in that situation. Colin Ah okay. But if the new guy buys 50% of Ken’s shares (73%?), then (for now) he’s only going to have 30-ish% shareholding. And Ken owns some of the other companies as well (like Outro) doesn’t he, so wouldn’t Ken still be the majority holder (albeit in a round-a-bout way)?? Matthew Bates apparently only owns 73 percent of the club, buying 50 percent of that would allow them to go after the remaining 27 percent and become majority share holders. Matthew Basically Bates could be ousted in a hostile takeover. henrymouni That would all have to be agreed before they purchased any shares. Matthew I don’t beleive so. Ken Bates has no say on who does what with their shares? I would imagine any new buyers would be investigating/in the process of agreeing deals for those shares. There are 27 percent of Leeds United shares out there just waiting to be bought, if I was buying the club I would at least be looking at who owns what and making offers. henrymouni Those 27% are owned by Kens friend/friends. Not by random strangers. They were the people who insisted KB takeover the company. I can assure you that anyone buying Leeds, with a view to total ownership, or at least a majority would need an absolute guarantee and timetable for those shares. Otherwise there is no point proceeding. Would you pour money in as a minority shareholder, without guarantees about control? Particularly when dealing with KB, and his offshore chums! BATES HATER Yes it would be, it would also cast doubt on the suitability of the new owners if they would work with bates, they may have similar shared visions. the club would continue struggle. BATES OUT, RIGHT OUT mattbb2 bob on colin, you have to wonder whether this is what hes been angling for all along, access to loads of money for him to spend as he sees fit. Someone elses money RC No because if it is half and half between the 2 and the new owners put the money in then it is not Bates’ money/business to take is it. Whereas with him as majority shareholder he can do what he likes as it is essentially his company and his money that is generated from player sales in the eyes of the law. henrymouni Ken owns 72.5% and the secret friends of Ken own the rest. If the new investors buy half of Ken’s shares they will own 36%. They may have an option to buy more when Ken retires, but in the meantime he will still retain control, If it is true, of course. Irving08 Come on Colin, he knows that’s not on and the would-be investor wouldn’t let him anyway. Let’s not be predictable. RiktonLUFCelite Deary deary me i swear there are illnesses and std’s easier to get rid of than this little bearded man. He just needs to go and quickly his rep can never be repaired with the vast majority of us. reddo Thats true, the vast magority, but it seems it can with the rest, tyler is one of the rest, not many will come back if bates stayes and the new owners had better know it RiktonLUFCelite yup agreed, he gets some sort of kick out all this i am sure of that. The day he sells can not come soon enough, let this be a warning to any other club, under no circumstance do business with him. Tyler75 You’re wrong there my friend – I hate the petty minded, miserable, bearded bastard with the best of them – but I want my club back and any dissipation of his totalitarian control is a step along that road. maxwatson Bates’ most significant weakness in the entire discussion, to win any remaining points on the table, is lack of alternative bidders, so planting a story via a friendly journalist that there is indeed such a bidder strikes me as being too good to be true for him. TimPM But it’s apparently part of the current consortium unless I read wrong? So it couldn’t be a bluff, unless one member wants the others to get on with it? Good news either way? —————— mattbb2 divide and conquer Tim Irving08 You attribute too much to Bates. Any division among fans is due to there being different points of view. it is crystal clear that Bates knows he cant take the club any further. It is our double misfortune that there are no buyers out there with the means to make him an offer he can’t refuse. Irving08 Agree good news either way. Bates knows that there is no alternative now but to investing in the team. And why would anyone want to have a power-sharing agreement with him on any other terms ? mrbigwheels The release by Duncan Castles in The National this morning, as max says, ”a friendly journalist” to the Leeds office is producing pure speculation and hype amongst us Tim. Where the hell has so much detail of a deal come from before…. never. I think this is total spin and not true. Warnocks line can be followed and quote… ”Hopefully, we will have some good news in the next 10 days, couple of weeks”… I’ll hang on to those lines rather than a possible divertion of what is happening. Full Warnock quotation is Newsnow, Leeds Utd, ITN News 2.01. Mark Mcinerney I have lost the will to live Chris P Or until Ken dies. Whichever takes the shortest amount of time. Ashley Brancker As long as money makes its way to the team i can live with it. I hate bates as much as the next person for a variety of reasons but the number one reason is the restriction of club funds being spent directly on the football team. If more money makes its way to the team and starts to make us successful i can live with it. Lord knows we need at least 5 more really good players to have any chance at promotion. Ludlow-white This deal will suit Bates right down to his off shore bank account. Personal i want funding for the squad but if that still involves Bates i am not sure. Tricky one Ashley Brancker he will pop his clogs sooner or later…. who knows all the new investment will probably go on a brand new west stand : P Lufc1979ish And there we have it, the answer to big question of why ken bates wouldn’t sign on the dotted line before now. We’re never going to rid ourselves of this parasite from our club. He’s a cancer and he will just cream off someone else’s money now he knows there’s nothing left in the pot as it currently stands. No squad a mediocre team dwindling crowds, this is exactly what he has created. The man who once accused middle eastern consortiums as chief rub a dub dubs. Look who’s rubbing his greedy hands together now. Drop dead ken bates West stand rebel Anyone putting money into the club and leaving Bates in overall control would be monumentally stupid. Bates would lose their money faster than they could pour it down the drain. His track record of dodgy dealings is now so well known especially during the last administration. anyone going down that route with him would in my opinion be certifiable. Buying shares in a sinking ship with Captain Bates at the helm….madness. TSS As I understand it, he won’t be in overall control – he’ll just retain a stake. West stand rebel But Bates owns over 70 percent. The other shareholders are presumably mates or business associates. Murrin comes to mind. Selling 35percent would probably still give him control of the voting rights. TSS From what I understand, the new guys will hold majority share – whether that means they’ve bought the shares Bates doesn’t control already (strange that no one is mentioning those), or that Bates is handing over 50% now I don’t know. henrymouni That would make more sense TSS. However Ken could continue as Chairman, and chief decision maker. Imagine what structures Ken could build with a big investment! AAaaggggh! TSS Duncan Castles (journo friend of Ken) claims he’ll act as a consultant, which might not be such a bad thing as the new owners are going to have to learn the ropes, so Bates experience (almost unbelievably) could be invaluable in the short-term. reddo Even with half the new owners couldnt make a decision without bates say so, so youd better know it, and young boys has just scored against liverpool, lolololololololol henrymouni If KB retains 36%, the secret shareholders will hold 28%, which remembering the takeover, could mean they will give Ken their voting rights = KB still in charge. Will we ever be rid of him? TimPM I thought the investor would get 50pc, not 50pc of Bates’ share? —————— TSS That’s how I understand it – that the new guys will be majority shareholder (which requires 50% upwards) I can’t imagine anyone agreeing to lesser terms. marccollins62 This new development could of course be a way to make the original consortium swallow whatever the bitter pill that they were trying to avoid (maybe Bates keeping a share). Only person I have heard this new offer from is Duncan Castle and Ive heard he’s tight with Bates. Just a thought… mrbigwheels ”Watch what I’ve got in this hand and while I’m taking the heat out of the previous failed trick… You won’t be watching what I’m doing with the other hand”, but you’ll like this”… alot. marccollins62 Exactly, can’t trust the bearded tw@t… slippery as an eel! Just because your paranoid doesn’t mean they’re not after you! Tyler75 Yet again, the only person keeping the fans informed is the Manager ! 50% of Bates’ share means he no longer controls the club or dictates how and when money (particularly when it isn’t his) is spent. This has got to be a positive step forward for the club. My worry is that we will need to be in with a shout of the play-offs by January to allow Warnock to strengthen the squad for a promotion push and with our paper thin squad I think we’ll be way off the pace. Colin Even if this investment goes ahead, if anything is to change then Ken has to be removed as Chairman. Over his 7 year tenure, he has shown he is not up to the job. He has consistantly lied, offended fans, gone public in slanging matches with players, invested in unnecessary building projects, dragged the club into court cases, supported a loss making and listener losing radio station and banned staff from speaking to the BBC. That’s just to name a few. Ken can be a Consultant (if he must), but there’s absolutely no sense in keeping him as Chairman. That should either be the new investor or a new person appointed by the new owner (not by Ken). Matthew Can someone just give the bearded bastard what he wants so he fucks off far away from the club please? Col DON’T WANT ANY “TAKEOVER” WHERE KEN BATES STILL AT THE CLUB. GET YOUR MONEY, PISSOFF BACK TO MONACO AND NEVER SHOW YOUR FACE IN LEEDS AGAIN!! Andio It would be 51 / 49 I imagine in new investor favour, majority rules and all but bates would stand to make a healthy profit upon targeted promotion. And more than likely without having to part with another ( if ever he did ) pound of his own money . Actually would’ve been the deal if i was ken bates I would look to do. He can earn his money from Monaco and never have to deal with the morons again. Then when we are promo he can take his dosh with a ‘ I told you it was best for the club ‘ whistle down the road. Cue limelight etc. Bye ken , thx for keeping us afloat and all , but your time is well past done. disqus_koi0nsqwmP i still say we all club together a few quid and have the old parasite nobbled reddo How much do you recon, ill send mine, give me an address. fringo Very cosy with him aren’t they. Reid_er I have a question TSS do you think if the takeover goes ahead that it would see Lorimer and Gray thrown out on there arse’s of the role they play at Elland Road? As much as these two are legends for what they achieved at the club in a footballing sense, they have been nothing but kiss asses to whoever walked in the door ever since things started going bad for our club and can’t help but feel they represent everything thats wrong with the club. They are ambassadors of the club and should have more interaction with the fans and also should really be asking the questions NW has been asking. I have no doubt that they love the club but then again so did ridsdale Marc Butterworth I WILL NOT ATTEND ANOTHER MATCH AT ER WHILE EVER BATES IS CONNECTED WITH OUR CLUB ****** IN ANY WAY ****** Col Out of Leeds Uniteds massive fan base there must be one psychopathic nutcase who would be happy to make a name for himself by shooting Bates?! Maybe it’s a job for Leeds fan BARRY GEORGE? Adolf Hitler 50% of bates is 100% better than all of him. Think about it! Anyway, he will be tucked up in his pyjamas soon and wheeled around an old people’s home in Monacco! If he has this new position at LUFC, perhaps they should have a rocking chair installed at ER Adolf Hitler You have got to admire the old barbeque. It was easier for the world to get rid of me than to oust Santa from ER Mojoluafc It’s better than nowt I suppose, the new investors have got their foot int the door. Leedsnearpirton On and on the so called takeover goes on! I wish Bates would allow reinvestment into the club now, I fear without, it will not be the playoffs we will be looking at, rather the opposite, a relegation battle! Please Ken for once and for all, sort it out!. Pingback: Professional Football Players Urgently Required | The Scratching Shed() Chareose why keep Bates as a consultant???? You all say “well hes experienced etc” Experienced at what ??? Running a business into the ground ? Alienating his customers ?? Making bad business decisions ??? Creating loss making situations like not signing players on contracts and causing court cases ?? Yes its obvious Ken has a lot of wisdom to impart to the would be buyers…..god fucxxxx help us ! henrymouni He is good with buildings, and court appearances. TSS He’s useless at court appearances, he loses almost every time! Leeds have a better record of victory on a Tuesday night. Kalich i fookin loled when I read that , take a bow TSS henrymouni Yes. Come to think of it he is not good with buildings either. Paul Longden anyone that buys 50% of bates shares would be giving money to Bates not the team. Who in their right mind will buy into a deal with bates, then fund transfers and building ventures for him. Anyone coming in is wanting to do the same with our club as papa smurf is already doing!!! rolo493 Sounds to me that this is the only way the consortium can move forward with the offer. These guys ain’t Bates puppets they are reported to be real buisness men. There would be nothing stopping them should they gain over 50% of all the clubs shares selling some of the crap that Bates drains the club funding! If this was to happen I would think it would force his hand into selling up completly!!!?? Just my thoughts these guys won’t take his shit once they are in the boardroom del bates only wants someone else to blame, when it all goes wrong,and of cause more money in his pocket. the man is a form of cancer eating away at a great club mrbigwheels If anyone cares to read the Duncan Castles article in The National he clearly states that …”one of the members of the middle east consortium has gone solo and offered Bates an alternative package in which he would receive 50% of the purchase price now and remain in place at Elland Road as a consultant”… Castles later goes on to say… ”Bates is undecided about accepting either of these new offers”… Have there been two new offers then?… This is all from a man who wrote an article last week entitled… Doubt over future of Warnock as Leeds Manager… his reasoning being Ken Bates displeasure over Warnocks summer signings!………What?. It’s time to get a grip lads and see this for what it is…. a smokescreen. Ken’s having a laugh with us all… Talk about Camels and Sunstroke. deano 72.5% owned by bates -50% taken by new investor =36.25% equal share then the skeletons fall out of kens long johns drawer and they admit that ken also owns the other 26.5% so now papa blue smurf heads into the chairmans chair with 62.75% and shouts these 3 words YOU FUCKIN MORONS Audio Who owns the last 1 percent here ? chelpa or………………………………its all a load of bullshit……………………….again! Take a bow bates! michael just do ous 1 favour ken please FUCK RIGHT OFF NOW U CUNT!!!!!!!! Dr Zen No thanks. Bates OUT! muzzcroft From the understanding I got from Duncan Castles article in The National, it states that the consortium are looking to give Bates 50% of the purchase price (which is reported to be £52 million) and for him to remain in a consultancy capacity with the remaining 50% been paid when Bates chooses to step down. Not buying 50% of his shares followed by the remaining 50% when he retires as you have written. Read his article and you will see: http://www.thenational.ae/sport/football/leeds-united-face-new-bid-from-former-middle-east-consortium-member? TSS I think that may be the case, but others explained it a little differently. As ever, TOMA proves to be as confusing as it is irritating. Yorkshirian I dont, and wont believe a breath of it herbert God how many times have we heard all this before, another 10 days, this time to find out the old bastard is still going to be here !! Team wise another season of blooding youngsters, read what NW says, it’s the same as what Grayson was saying, crumbs wake up people please. btw blooding youngsters is no bad thing at all, and neither is running the club at a profit, i really believe that. My point is that we are handing over our money to somebody who is basically taking the piss, you wouldn’t do that in daily life, not more than once anyway. I suggest you can make fairly accurate predictions about what is going to happen with players in Jan judging by what’s happened in the last few years, whether it be McCormack or Austin we will be a man down come the start of Feb, which one only depends upon who is worth more at the time. With managers and investors we can predict based on what happened at Chelsea, NW will last as long as KB can string him along and then he will be sacked and replaced with somebody else who for as long as they can be and as far as investors are concerned, well be careful cos he’ll have you, and your money, and you again.. The man is trading on hope, ours, as long as we have a little we will keep paying. I will not.