Leeds Takeover Dashed As Cellino Guilty In Tax Case

"This verdict is absolutely unjust and we will appeal," he told the Guardian after the brief court session

Cellino, 57, heads Eleonora Sports, who agreed to buy Leeds from Gulf Finance House Capital on February 1

Cellino had been hoping to have his takeover ratified by the Football League

It had said last Thursday, ahead of the Cagliari court hearing, that it could take up to 10 more days to make a decision on the ownership of Leeds

The governing body's 'owners and directors' test, prevents anyone with an unspent conviction for dishonesty offences from being a director, a 30 per cent owner, or from exercising control over one of its clubs which points to the Cellino takeover being blocked

Miami-based Cellino, currently the owner of Cagliari, denies that he was seeking to evade import duty on the yacht

He told the court in December that he had planned to have it sailed to the United States, where he had bought it, but was unable to due to damage to the yacht

 

 

 

Cellino, who exchanged contracts with current owners Gulf finance House Capital to buy 75 per cent of the club's shares at the beginning of last month, has already provided considerable funds to cover running costs at Elland Road

The businessman has covered the club's staff wage bill for the last two months and has paid off a loan from shirt sponsors Enterprise Insurance to stave off a winding-up order.

Since the takeover deal with GFH Capital was agreed, Leeds have also signed Stoke goalkeeper Jack Butland and Sunderland striker Connor Wickham on loan until the end of the season.

Cellino's lawyers started talks with the Football League at the end of January and the Cagliari owner met with the governing body on February 12.

Bahrain-based investment firm GFH Capital has been searching for major investment since buying the club from Ken Bates in December 2012.

A rival consortium to Cellino, headed by Andrew Flowers, chief executive of Enterprise Insurance, withdrew from the race to take control at Elland Road at the end of January, but a third group, Together Leeds, fronted by former Manchester United International managing director Mike Farnan, has been waiting in the background.

GFH Capital has so far refused to enter into serious talks with Together Leeds after rejecting a "derisory" offer from them in November.

Miami-based Cellino has twice been previously convicted of fraud and is currently contesting a separate charge of embezzlement.

He received a 15-month suspended prison sentence in 2001 after being convicted of false accounting at Cagliari.

A previous conviction in 1996 for fraudulently claiming EU agricultural subsidies was overturned in 2012, while in February 2013 he spent 16 days in jail after being arrested for embezzlement - a charge he denies - in relation to the redevelopment of Cagliari's Is Arena stadium.

But Cellino's two previous convictions, nearly 13 and 18 years old, are considered "spent" in English law and it is understood they cannot be taken into consideration under the League's "owners and directors' test".

In relation to his outstanding charge, Cellino is assumed innocent until it can be proved otherwise.

But after now being found guilty for failing to pay tax on his luxury yacht, it would appear his bid to take control at Elland Road is in serious doubt.

Cellino, long considered one of the most charismatic owners in Italian football, was shown around Leeds' Thorp Arch training ground for the first time in October.

He verbally agreed to a 75 per cent takeover with GFH Capital at the end of January and tried to sack manager Brian McDermott and install friend and former Middlesbrough defender Gianluca Festa as team boss.

That bid sparked outrage among Leeds fans, who attempted to barricade Cellino at Elland Road on the eve of their home game against Yorkshire rivals Huddersfield on February 1.

McDermott stayed away from the game, which Leeds won 5-1 under the stewardship of assistant Nigel Gibbs, while GFH Capital released a statement before the game had ended overruling Cellino and stating McDermott was still manager.

McDermott returned to work as normal the following Monday and Cellino attempted to distance himself from the controversy, claiming it was the current owners who wanted to sack the manager.

Cellino has since said he is willing to work with McDermott if his takeover gets the go ahead, but voiced his frustration last week when revealing he would no longer bankroll the club until the League approved his takeover.

Leeds managing director David Haigh insisted last week that there is "no chance" of the club going into administration.

The League board met last Thursday to discuss the matter, but had delayed any decision until after the current court case.

 

Source : PA

Source: PA