A Chinese consortium led by the Xinfu consultancy have started talks with the club’s current owners to discuss a possible takeover.

The consortium has been put together by Harrogate-born Leeds fan Steve Tappin, who is the chief executive officer and founder of consultancy firm Xinfu, as well as being the presenter of the CEO Guru series on BBC World’

Tappin said in an article in Friday’s Chinese newspaper China Daily “I have had a series of meetings with related parties all this week, and there is definite interest in buying Leeds, but I want to ensure it would be with long-term investment, significant working capital and the right governance so it can be a stable platform for sustainable Premier League success.”

“Leeds United is a big club with a very strong fan base and huge potential for investors, particularly if it can be returned to the Premiership.” The bid is likely to be for an investment of more than £100 million, around half of which would be to buy out Massimo Cellino and minority shareholder GFH, with the remainder to cover ongoing losses and improve the playing squad for a promotion push.

But the ultimate source of this money is not yet clear, as Xinfu are a consultancy, rather than being investors themselves. On their website they describe themselves as a “Bridge between China and the West”, to assist wealthy Chinese investors who want to do business in the west, and vica versa.
“Xinfu is both a Western and Chinese company and our team is a balance of Western and Chinese experts.”

It will be interesting to see who the investors actually are, but so far it has been reported that “the claimed the consortium consists of unnamed Chinese entrepreneurs and a private equity group.” If the bid does materialise it will be part of a pattern of growing Chinese interest in English football, with Aston Villa and Wolves having already been taken over by money men from that country.

Massimo Cellino has previously said he will sell the club if receiving the right offer, having got rather tired of the self-inflicted hassle of his controversial two and a half year reign, but so far has complained that none of the parties to have shown an interest so far could prove they had the necessary funds to seal the deal.

But if this group is serious about taking the club over, it can only be a good thing, even though the statement suggests they would like a return on their investment if and when they got us back to the Premier League. I like the bit about “the right governance”, which would make a pleasant change from the way Cellino operates, with his hot-headed decision-making, shabby treatment of his staff and lax attitude to paying his taxes.

Let’s hope that this takeover does come to pass, and that this time we end up with an owner who really does have the resources to take the club forward.

Photo: Action Images

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