Member Article

Leeds United face embargo over GFH debts

Leeds United face the risk of a transfer embargo in January over debts and losses built up by previous owners Gulf Finance House.

The Bahraini bank, currently in litigation with ex-Leeds United MD David Haigh where he is imprisoned in Dubai, ran Leeds for 16 months between December 2012 and April of this year.

There are set to be major changes to the rules governing Financial Fair Play (FFP) in the Sky Bet Championship, however these will not come into effect until the start of the 2016-17 season.

Meanwhile, the Football League has refused to comment on its plans for Massimo Cellino, whose position as majority shareholder of the club is still in doubt following charges of tax evasion in Cagliari.

Under the League’s rules, existing owners and directors of clubs are required to inform the governing body of changes to their status which might disqualify them.

United were losing approximately £1 million a month when Cellino bought a majority stake in April and signed 15 new players during the summer transfer window.

Cellino told the Yorkshire Evening Post: “That’s something I got from other people. It’s not my fault, it’s the balance sheet from last year.

“We took on a bad situation financially and I covered that but we are facing an embargo.”

This was posted in Bdaily's Members' News section by Clare Burnett .