Soccer: Leeds say no to purchase offer by Sainsbury

LONDON - Leeds United, one of the great names in English soccer, have denied they are negotiating a possible sale of the second division club to British businessman Sebastian Sainsbury.

Sainsbury had made a formal purchase offer today but Leeds United chairman Gerald Krasner said the Yorkshire club was still discussing a proposed investment by a "local" consortium.

"The negotiations with the local consortium of Leeds United fans are progressing well and the board hope they will come to fruition within the next seven to 10 days, at which time a further statement will be made," Krasner said in a statement.

"Today we received a letter from a different firm of solicitors representing Mr Sainsbury.

"Yet again there was no proof of funds provided. We can only assume that Mr Sainsbury is simply intent on damaging a deal with a consortium that we are in advanced negotiations with, which is in a strong position to proceed.

"We can therefore confirm the club is not in discussion with Mr Sainsbury."

Sainsbury, a great grandson of the founder of the British supermarket chain that bears his name, had led a British-American consortium that proposed a takeover of Leeds United earlier this month.

However, those talks ended when the consortium failed to meet a series of deadlines.

Leeds were then forced to sell their Elland Road stadium on a sale-and-lease-back agreement to raise funds.

The club bought back the stadium in 1998 after it had been under the control of Leeds City Council for 13 years.

Leeds had debts estimated at more than £100 million ($268.38 million) last year and came close to financial collapse before being sold to a consortium led by chairman Krasner in March, 2003.

Leeds, relegated from the premier league in May, have offloaded all their big-name players in a bid to ease debts.

They also sold their Thorp Arch training ground in October and signed a 25-year lease to keep using the facilities.

One of dominant clubs in the English game in the late 1960s and early 1970s, Leeds reached the Champions League semifinals in 2001.

- REUTERS