Managing Director David Haigh has claimed there is no danger of the club going into administration, but should we still be worried?
In today ‘s Yorkshire Post Haigh assured us that the club has the funds to keep going for the time being, even though Massimo Cellino has stopped putting any further funding until such time as his takeover is approved.
'The club is in good hands. It has money and there is no chance of the club going into administration. None whatsoever. I keep hearing these whispers, where people have put two and two together to make 550. We had a winding-up order recently, which caused fans to panic. "
'But the club is not in any kind of precarious financial position. Either now or in the future. It is not true and never has been. As a director of a company, there is a test of solvency that you have to go through. Can the company meet its debts, as and when they fall? And yes, Leeds United can.'
Sorry David, but I don’t think too many people are going to be convinced by that. It’s true that the winding-up order was paid off, but it was for a relatively small amount of money and in any case it was only a tactical move from Andrew Flowers to try to prevent Cellino taking control of the club. But the concerns people have are based on a lot more than putting two and two together to make 550.
We know that the club has been losing £1 million a month and that Cellino had to pay the wage bill for a couple of months. And that was before we took on a couple of loan players on the assumption that the Italian was going to be around to pay for them. So it doesn’t take a genius to work out that if his funding is withdrawn for any length of time that were going to have a bit of a problem.
So despite anything Mr.Haigh might tell us, we’re going to have to pray that the League can make a decision about Cellino sooner rather than later, so either he can start funding us again, or we can find out if the Farnan group are able to pick up the tab. Because it’s not by any means certain that GFH will have the resources to keep things ticking over in the meantime,