SAINSBURY DOES ONE
Sebastian Sainsbury, who has been talking of a takeover of Leeds United for the last two months, sensationally withdrew from bidding for the club yesterday.
At 4.15pm his lawyers informed lawyers for the club that Sainsbury would no
longer be bidding.
For the last couple of days there had been much speculation about Sainsbury
taking over the cash-strapped Yorkshire club and even Ken Bates, the former Chelsea chairman, being involved in his consortium -despite the fact that Bates has vehemently denied this. Apart from Bates' alleged link with Sainsbury, Sainsbury has never revealed who his backers were.
But following yesterday's revelations by The Daily Telegraph of companies of
which Sainsbury is a director, or has been a director, his bidding collapsed.
"I am really depressed," Sainsbury said. "I really wanted to get something done for the sake of Leeds United and their fans and I am sick to my stomach I have not been able to do so.
"But upon completion of due diligence by our potential funders, the true scale of Leeds United's debt and liabilities have become clear. It was obviously more than we, they, and many others had envisaged."
As revealed in The Daily Telegraph a search of Companies House shows that a company of which Sainsbury is shown as director and owning all the shares, Sainsbury Asset Management, has never traded and is dormant. Another
company, Ellaway Management, of which he was a director until last January,
had an income of just over £18,000 but still made losses of over £60,000.
company, Ellaway Management, of which he was a director until last January,
had an income of just over £18,000 but still made losses of over £60,000.
In the two months that Sainsbury emerged on the scene as a saviour of Leeds he has never provided proof that he has the funds necessary for a takeover.
Leeds are in discussions with local property developer Norman Stubbs. I
understand this is considered a more credible bid for a club who are facing
administration and need over £1million to pay the Inland Revenue.
Margate supporters who demonstrated in front of Thanet District Council offices yesterday, fearing for their club's future, were overjoyed to hear that a 28-day stay of execution has been granted.