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Bahraini royalty`s bid for Leeds sends shares rocketing
Istanbul, Dec 04: News that a member of the Bahraini royal family may bid for troubled soccer club Leeds United gave the team`s shares a boost.
Istanbul, Dec 04: News that a member of the Bahraini royal family may bid for troubled soccer club Leeds United gave the team's shares a boost.
Shares in Leeds United soared 28 percent on Wednesday (December 3) after a member of Bahrain's royal family said he might bid for the debt-ridden premier league club. Leeds United shares rose by up to 34 percent to 5.375 pence in morning trading after Sheikh Abdulrahman Al Khalifa, widely reported to be a supporter of the club, said he was exploring ways to help Leeds and might make an offer. Leeds, who have debts of around 80 million pounds (137.5 million U.S. dollars) and are bottom of the premier league table, said early on Wednesday that they had not received a bid approach. The Yorkshire club warned last week they might have to call in administrators if current re-financing moves failed.
Some investors had expected a possible takeover wave in English football after Russian billionaire Roman Abramovich bought Chelsea, but the high debts of many clubs have made similar deals tricky.
Manchester United are currently the subject of intense takeover speculation, but the Premier League champions are far more attractive than rivals because they are one of the few clubs making a profit.
In October, Leeds reported a pre-tax loss of 49.5 million pounds for the 2002-2003 financial year. Like many clubs, its debts and losses have risen due to the rising wages of players.
Leeds' problems date back to a spending spree under former chairman Peter Ridsdale and ex-coach David O'Leary, who invested heavily in players on expensive wages in a bid for European glory.
Ridsdale was forced to step down as chairman in March of this year. A new chairman, John McKenzie, has taken over an non-executive chairman.
Leeds reached the semi-finals of Europe's lucrative Champions League in 2001, but they have been unable to sustain that success.
Now fighting for survival in the top flight, Leeds enjoyed a golden era from the mid-1960s to the mid-1970s, when they won two league titles, the FA Cup, the League Cup and two Fairs Cups -- the forerunner of the UEFA Cup.
They won their last match at the weekend against Charlton Athletic but remained bottom of the league.
Bureau Report
Shares in Leeds United soared 28 percent on Wednesday (December 3) after a member of Bahrain's royal family said he might bid for the debt-ridden premier league club. Leeds United shares rose by up to 34 percent to 5.375 pence in morning trading after Sheikh Abdulrahman Al Khalifa, widely reported to be a supporter of the club, said he was exploring ways to help Leeds and might make an offer. Leeds, who have debts of around 80 million pounds (137.5 million U.S. dollars) and are bottom of the premier league table, said early on Wednesday that they had not received a bid approach. The Yorkshire club warned last week they might have to call in administrators if current re-financing moves failed.
Some investors had expected a possible takeover wave in English football after Russian billionaire Roman Abramovich bought Chelsea, but the high debts of many clubs have made similar deals tricky.
Manchester United are currently the subject of intense takeover speculation, but the Premier League champions are far more attractive than rivals because they are one of the few clubs making a profit.
In October, Leeds reported a pre-tax loss of 49.5 million pounds for the 2002-2003 financial year. Like many clubs, its debts and losses have risen due to the rising wages of players.
Leeds' problems date back to a spending spree under former chairman Peter Ridsdale and ex-coach David O'Leary, who invested heavily in players on expensive wages in a bid for European glory.
Ridsdale was forced to step down as chairman in March of this year. A new chairman, John McKenzie, has taken over an non-executive chairman.
Leeds reached the semi-finals of Europe's lucrative Champions League in 2001, but they have been unable to sustain that success.
Now fighting for survival in the top flight, Leeds enjoyed a golden era from the mid-1960s to the mid-1970s, when they won two league titles, the FA Cup, the League Cup and two Fairs Cups -- the forerunner of the UEFA Cup.
They won their last match at the weekend against Charlton Athletic but remained bottom of the league.
Bureau Report