UNITED NEED A CASH FIX QUICK

A LONDON-BASED businessman who failed with a bid to take control of
Leeds United has warned that the club may face relegation again next
season if immediate investment is not forthcoming at Elland Road.

Simon Franks, the founder and chairman of rescue company Redbus, fears
the decision by administrators KPMG to accept Ken Bates' offer for
Leeds over those made by five other consortiums will prompt another
crisis at Elland Road should United's chairman fail to secure serious
financial support.

Redbus were one of the companies who submitted an offer to KPMG with
proof of funds before last Friday's ballot over the Company Voluntary
Arrangement (CVA) proposed by Leeds United Football Club Limited, but
their interest was repelled by a 75.20 per cent vote in favour of
Bates.

Franks, 35, claims his firm had "tens of millions of pounds" secured
and ready to invest in Leeds. Redbus' offer to United's unsecured
creditors is thought to have been considerably higher than Bates'
proposal of a penny in the pound, a settlement figure which will trim
the club's debts from more than £35m to around £350,000.

Redbus' proposal was among the most rewarding on offer to the
thousands of individuals and companies owed money by Leeds, and the
firm are in the process of deciding whether to challenge Bates'
victory in the High Court.

United's creditors have 28 days from June 4 in which to dispute the
process which is set to return the club into the hands of Bates.

Franks admitted he was worried by the prospect of a court case
delaying United's exit from administration and hampering the club's
plans for next season, but he also expressed concern about the
'anti-embarrassment clause' inserted into the CVA.

The clause is designed to restricted the ability of Bates and Leeds
United Football Club Limited to sell Leeds immediately after their
takeover, ensuring that any sale completed within six months – and at
a value of more than £5m – would see 50 per cent of anything over £5m
shared among United's creditors.

Franks told the YEP: "I have a real problem with this clause. If Mr
Bates is prevented from bringing in buyers until December, and fails
to secure the necessary investors in the meantime, there's a danger
that next season could go badly wrong. The club might be relegated
again.

"Leeds need investment and fresh blood now, not in six months time,
and we were offering that to the administrators. The Redbus Group had
tens of millions of pounds ready to invest and I mean ready to use
straight away, not somewhere down the line."

"But I'm not portraying the CVA meeting as a straight choice between
Mr Bates and Redbus; there were three or four other wholly credible
bids put forward by different groups, completely unconnected to us.
They were all backed by proof of funds."

"We're considering a legal challenge but I'm anxious not to cause the
club unnecessary problems this summer. I know there is a lot of work
to do before next season, and people need time and freedom to do it.
this is a delicate and important decision for us."

The Redbus Group have established themselves as a private firm who
acquire struggling businesses with the intention of returning them to
profitability.

Franks says his company, which was established in 1997, has never
failed to prevent a beleagured firm placed in their hands from going
out of buiness.

United's move into administration made the club a perfect target for
Redbus but their inability to persuade KPMG to accept their bid will
move the firm onto unfamiliar ground, unless Bates' takeover is
challenged sucessfully in court.

Franks admitted Redbus would not normally consider an outright
takeover of a solvent and thriving club, but the company are
reassessing their position after being approached by an unamed
American group who have an interest in sports ownership and appear to
be keen to support Redbus' plan.

SERIOUS

Franks said: "We wouldn't normally buy a club which was operating
sucessfully. Redbus typically look at refinancing businesses and
turning them around. It wouldn't be our strategy to pay a ludicrous
price for a football club."

"However, we've received a call from the US sports-owning group who've
said they want us to work with them and take this forward. They have
got serious funds behind them and a serious interest in getting
involved with a British sports club."

"That's the position we're in, and a lot will depend on where we go
with the CVA and the possibility of a legal challenge. We proved to
KPMG that we had the necessary firepower to get involved, and the plan
was based entirely on returning Leeds to the Premiership and making
the club a viable and sucure business again. We've been very
successful on that front during the last few years. I'm proud to say
that we haven't lost a company yet."

Franks and Redbus succeeded in remaining annonymous during the days
leading up to last week's CVA meeting at Elland Road, but their
attempt to gain control of Leeds was revealed following KPMG's
announcement that Bates had secured a narrow victory - subject to a
recount.

Leeds property developer Simon Morris has submitted a bid of his own,
coupled with ambitions of redevelopin United's stadium and the
surrounding area at a cost of £400m.

The 30-year old is not expected to involve himself in a legal fight
against the CVA, but his future plans are now unclear.

The YEP revealed last month that Morris had agreed a deal with the
secretive owners of Elland Road, Teak Commercial Limited, which would
allow him to redevelop United's stadium if his takeover deal came to
fruition.

Franks, however, insisted Redbus had no plans for property development
to run alongside their strategy for improving United's financial
position and league standing.

"We're not a property company," he said. "It's not what we do, and we
certainly didn't look at Leeds for that reason. The whole point of us
getting involved was to take the club back to the Premiership. I think
our ambitions matched those of the supporters' in that respect."

"I'm not going to be deceptive and pretend that I'm retired
billionaire who sees Leeds United as a trophy asset - our intentions
were to make Leeds a viable and successful business. In order to do
that, a club of this size has to be operating in the Premiership."

"Some people dislike the fact that football is all about money these
days, and I can sympathise to a point. But, like it or not, that's the
way the game works. The simple fact is that the majority of clubs near
the top of the Premiership are also thriving businesses."

"We'd have come in with the aim of achieving that goal as quickly as
possible, and we'd have had to make it happen."

"The amount of money that Redbus intended to put into Leeds United
would also mean our company would be in big trouble if Leeds stayed
outside the Premiership. In fact, we'd probably go bust. That's the
reality of how serious we are."

Source: Yorkshire Evening Post 8 June 2007