01 June 2023 , 12:02
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Leeds United chairman Andrea Radrizzani has offered to use Elland Road as security against a £26m bank loan which will be used to buy Sampdoria.
The Italian businessman, who has owned Leeds since 2017 and was at the helm for their promotion in 2020, is currently part of a group that are looking to purchase Sampdoria, who have just been relegated from Serie A. Radrizzani was absent for the final game of Leeds' season which confirmed their relegation as the home fans turned against the hierarchy.
Under what is effectively an agreement in principle, Elland Road would act as collateral as part of the deal that Radrizzani's company, Aser, and his bidding partner, Gestio Capital, are using to borrow huge sums from Italian bank Banca Sistema, to fund their Sampdoria buy-out.
Radrizzani's plans to buy another club whilst his English investment is in turmoil has not been well received. The club’s minority shareholder, 49ers Enterprises, have been in discussions to acquire control of the club, albeit at a reduced price following their relegation to the Championship.
The Athletic understands however that the 49ers Enterprises were not kept in the loop about the stadium being utilised as the security for a potential loan, which could have long-term implications.
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The proposed bridging loan would be due for repayment within two years whilst clauses also show the bank can charge up to nine percent interest. The loan agreement can be extended for up to 10 years however, which could leave Leeds' home ground as Radrizzani’s security against his investment in Sampdoria for a decade.
Elland Road has been used against a £26m loan (EMPICS Sport)Elland Road is not owned by Leeds, but was purchased by their Italian owner in 2017. Another of Radrizzani's companies, Greenfield Investment Pte Ltd bought it, and has since passed it to Elland Road Limited, which was set-up in 2020. Radrizzani is a director of Elland Road Limited along with Leeds' chief executive Angus Kinnear, Massimo Marinelli - a prominent figure in Radrizzani’s investment firm, Aser - and Collin Meador, an official with minority Leeds shareholder 49ers Enterprises.
Leeds have played at Elland Road since their inception in 1919 and its use in any takeover deal will caused a greater divide between the owner and the fans. There are already calls for Radrizzani to sell up, although he alluded to him staying put in a letter to fans.
A section of it read: "We have made significant investments to try and keep Leeds United in the Premier League, but in working hard to improve the club, we have also obviously made some mistakes. Leeds supporters deserve more than this. I hope that when the anger and disappointment has subsided you will see that we can come back stronger.
"I do not like to make false promises, there is still a lot of work to do and change is needed. We will keep you updated throughout the process."