Last week, when media flashed news citing Leeds United Football Club’s owner’s GFC Capital’s intentions to sell a stake of their holdings, nobody believed; even GFC backtracked from their consolidation balance sheet’s facts. Actually, Gulf Finance House acquired English club back in December and since then they put its assists and liabilities as ‘held for sell’ in their consolidated balance sheet. When media unearthed their talks with a Bahrain-based company for a possible sale, they refused to confirm the report. Now, everything is clear coz GFC has finally sold 10% of its stake in the football club to a Bahrain-based International Investment Bank. Over their selling, GFC said it is their strategic move to lure more investors to improve Champion League’s club position and probably its possible entry into EPL. Deputy chief executive of GFH Capital, David Haigh, said over their stake sale,
“The introduction of IIB is in keeping with what have always been GFH Capital’s aims for the successful, sustainable and long-term ownership of Leeds United. We believe that a consortium of like-minded investors provides the best ownership model for a club which belongs among the elite of English football clubs.”
Asking for more potential investments in the club, GFC said that they want more such financiers to come and join the club coz they have promised to make an overhaul in club position in Championship league. Last week, when its financial statements were scrutinized by some media houses, it was clearly written therein that “The Group has an active plan to sell its stake in LUFC Holdings Limited, and accordingly, the asset and liabilities acquired were classified as held-for-sale and presented in the consolidated statement of financial position. Subsequent to the year end, the Group has commenced negotiations relating to the sale of its stake in LUFC Holdings Limited.”
Hence, everyone was since looking for a positive development on the issue, and now when it has happened; everyone has his own opinion about this partial takeover. Some are labeling it as a routine investment while others are marking it as a long term strategic deal to make a decisive change in club’s outlook. Anyways, no matter if International Investment Bank has much decision power as of yet, GFC capital will enjoy the holding stake in the club or until more such investors come forward and reduce their controlling stake.