The loan, agreed with Berrydale Seventh Sports Holdings, brings much need cash into the club, although it is not clear if this is required to meet ongoing running costs, or to improve the club further with new signings.
GFH-C, the current owners of the club have an uphill task of developing Leeds United. The previous regime, headed by Ken Bates forward sold future income from season ticket sales and sponsorship payments, to fund the development of Elland Road, most obviously, the installation of new executive boxes.
The ideal scenario would be for Leeds to attract external investment to pump money into the club, although securing a loan is not always bad for business. Any investment would demand either a share of the club, or a share of the profits as a return, whereas a loan agreement would costs interest, but keep ownership, or control of future profits within the club.
It has been revealed that David Haigh, Leeds United's Deputy Chief Executive is also Director of Berrydale Sports Holding, therefore it is likely that this move is simply a way to move cash into the club without some of the tax obligations other methods of investment would attract.
Whilst the financial dealings continue to baffle most normal supporters of the club, the question should be asked, what is the money for? Is it to build further and develop the team, or has the petty cash run out?
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