Radrizzani paves way for huge overhaul after stunning £9m Leeds deal confirmed
COMMENT By Richard Parks
The penny has finally dropped for Andrea Radrizzani.
The Leeds United owner has come to realise that a mid-table budget is rarely enough to seal a top-table finish and has acted well before the transfer window has formally opened.
Nearly £9million of Leeds shares have been registered with Companies House by a firm controlled by Radrizzani.
Yorkshire Evening Post correspondent Phil Hay uploaded documentation of the rights issue to pave the way for new investment in the Championship club.
Companies House registered a near £9m sale of shares in the club today – understood to be the conversion of a loan from Greenfield (LUFC’s parent company) into equity to allow the investment deal to take place pic.twitter.com/XYmYiVC4Js
— Phil Hay (@PhilHayYEP) May 10, 2018
It comes after a loan of almost £9m made to the club by Greenfield Investment Pte Ltd, a firm controlled by Radrizzani’s investment company Aser, was converted into club shares last week.
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Just in the nick of time, as Leeds prepare for a transfer window in which a major cash injection is needed to transform a mediocre squad into genuine play-off challengers next season.
The promotion candidates are usually the ones who spend the most, unless a club can hire a manager capable of producing miracles, as Neil Warnock has done at Cardiff City but couldn’t do at Leeds.
United posted a near-£1million profit on a £34million turnover in their most recent set of financial results, but had an operating loss of more than £9million.
With the club’s wage bill rising to £20million, it had left Leeds at the top of their budget and with little room for growth.
The proposed sale of equity would improve the financial strength of a club and free up more cash for the transfers desperately needed to transform a team that is not up to scratch.
The word is that the £9million of liquidity will all be available for transfers.
Credit to Radrizzani for learning from his mistakes and laying the foundations for a summer spending onslaught that can only improve the side.