Tuesday, August 14, 2007

Cardiff’s Financial Backers Seek Return of £30 Million

Peter Ridsdale, former Leeds United Chairman, is in financially choppy waters again. Langston, the financial backers of Cardiff City, have instructed Hextalls to commence proceedings against the club (which Ridsdale now chairs) to recover funds which ‘amount to more than £30 million’, according to Hextalls.

A press release issued by Hextalls says that Langston is alleging that the Football League Championship club has failed to meet deadlines and has breached the terms of its loan agreement, in respect of the capital sum plus interest.

‘Our client has serious and increasing concerns about the club’s present administration and its ability to manage the club’s financial affairs’, reads the release. ‘In the event that the club cannot meet its liabilities to our client, then the alternative is for the current Board of Directors to resign and our client endorse the appointment of a new Board and new management. The club’s board has also been advised by us that its recently submitted accounts do not reflect its true financial position. Clubs are, of course, governed by the Football League concerning their solvency and (as has recently been seen in the case of Leeds United FC) circumstances can arise causing a 10-point deduction’.

The release accuses Ridsdale of ignoring communications regarding the seriousness of the financial situation, including a final warning giving ten days in which to respond, issued 2 August. Peter Ridsdale is currently completing his book, which is expected to reveal some of the excesses that led to the financial collapse of Leeds United. It had better sell well…

Andy Brown


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