Leeds To Buy Back Elland Road

Last updated : 05 January 2007 By Kevin Markey
The Guardian report that United are understood still to be paying onerous fees for players who left the club during and after their relegation three seasons ago.

That has put immense strain on club finances but the board is optimistic that the situation will improve, freeing funds for a buy back.

"This is the last year of Peter Ridsdale's excesses," said Leeds director Mark Taylor. "We are still paying wages for players like Robbie Fowler, Seth Johnson and Michael Duberry. Our financial position changes dramatically when the payments stop; half our wage bill is being spent on players who do not play for the club."

The stadium's ownership changed hands in March 2006 but documents have only lately been lodged with the land registry. These indicate that the new landlord is a company called Teak Trading Corporation, registered in the British Virgin Islands.

This has led to speculation that the chairman, Ken Bates, who has a history of conducting business in the tax-haven islands, is behind the deal.

However, Taylor rebutted the rumours, describing them as "ludicrous", stating that neither Bates nor any of his associated companies has an equity interest in the firm.

Indeed, Taylor said that Leeds have not been informed of the identity of their new landlord.

"Teak Trading has got nothing to do with us at all," said Taylor. "We didn't know about the sale because it doesn't bother us. They don't have to inform us who the landlord is. The rent is collected by the same people, so that would suggest that it remains with the same owners."

The club have been paying rent demanded by the Barnaway company run by Jacob Adler, the Salford-based property businessman who bought the Elland Road site in 2004.

Leeds continue to benefit from a 25-year purchase option written into the £12m sale-and-lease-back agreement signed by the previous board, whose chairman was Gerald Krasner.

It is by exercising this option that the club would seek to reacquire the freehold to their home of the past 100 years.

"We still have the option of repurchase for 25 years," said Taylor. "Nothing has changed from Leeds' point of view. We still have an address to serve the option notice on. We will take up that option when we have the funds to do it."

Leeds City Council has a plan to invest in a multi-purpose arena with conference and exhibition facilities and it is exploring the possibility of siting the £38m development at Elland Road.

According to a council feasibility study, this would lead to up to £300m in economic benefits helping to regenerate the area and Leeds do not wish to miss out on the associated benefits.

"There is development land near the stadium site," added Taylor, "and Leeds want to be involved in that. But Ken [Bates] was very strong on Chelsea having to play their football at Stamford Bridge and he is equally so about Leeds and Elland Road."