June 01, (THEWILL) – Leeds United Chairman, Andrea Radrizzani, has put forth a proposal to use the club’s Elland Road stadium as collateral for a £26 million bank loan.
The loan, which Radrizzani’s company Aser and bidding partner, Gestio Capital, intend to secure, is aimed at completing a takeover of Italian club Sampdoria. Under the agreement, Elland Road would act as security for the £25.8 million loan from Italian bank, Banca Sistema, providing the necessary funds for the buy-out of Sampdoria. The move comes shortly after Leeds United’s relegation from the Premier League to the Championship, and while Radrizzani was not present at the final match, he was focused on finalising the deal for Sampdoria.
However, the minority shareholder, 49ers Enterprises, who have been in talks to acquire control of Leeds, have reportedly not been informed about the proposal, which would need to be repaid within two years and which includes provisions for interest rates ranging between six and nine percent per year. Moreover, the agreement allows for the loan to be extended for up to a decade, raising the possibility that Elland Road could serve as security for Radrizzani’s Italian venture with Sampdoria for the next ten years.
At present, the progress of the loan beyond the heads of terms agreement remains unclear. Leeds United’s stadium, Elland Road, is not owned by the club itself but was acquired by Radrizzani in 2017. This move raised concerns among Leeds supporters, as it could jeopardise the club’s financial stability.
The potential use of the stadium as collateral for a loan to purchase another club has sparked criticism and questions from both the local community and the global fan base of Leeds United.
Jude Obafemi is a versatile senior Correspondent at THEWILL Newspapers, excelling in sourcing, researching, and delivering sports news stories for both print and digital publications.
