Cellino guilty! Takeover in doubt?

Long suffering Leeds United fans will have been wishing for a resolution to the on-going takeover saga in the coming days but this morning’s news may throw the whole thing into further confusion.

At a Sardinian court hearing prospective owner Massimo Cellino was found guilty of failing to pay import duty on a luxury yacht called Nelie. He has been fined €600,000 and the yacht has been impounded. Leeds fans will care little that the size of the Cellino family flotilla has been reduced by one but that this has serious implications on whether the Football League will approve Cellino’s takeover bid for the club.

Cellino has previously denied that he was trying to avoid paying the tax, advising that the yacht was due to be sailed back to the United States. Defence lawyer Giovanni Cocco said, "This verdict is absolutely unjust and we will appeal”. A full judgement has not been released yet but will be within 90 days.

The Football League had expected to be able to give their judgement early next week having been waiting for the conclusion of this case. The likelihood now though is that they will say “no grazie”. The much maligned ‘fit and proper persons’ test is the stumbling block for Cellino and prevents anyone with “unspent convictions for dishonesty offences” being a director, owning more than 30% of or exercising control of a Football League club. So what does happen if the League say no?

In the first instance Cellino may appeal. There are already mutterings that he will suggest to the League that this conviction should not be considered "an offence of dishonesty", I somehow don’t see that washing with the powers that be though. Secondly he may state that Eleonora Sports are buying the 75% stake in Leeds United and that he is only a minority shareholder in this company, which is actually owned by his family trust. Again, I’m not sure the Football League will accept this as their rules include anyone ‘exercising control’ of a Football League club. Can Cellino demonstrate to the League he will personally have no control over the club?

This conviction aside Cellino has a murky past and many more potential skeletons in the closet. Could he really be considered a fit and proper person? He has a previous, now spent, conviction for false accounting for which he was given a 15 month suspended sentence. He is under investigation for alleged “misuse of public funds” relating to development of Cagliari's Quartu Sant'Elena Stadium and he has another two tax cases looming later this year in relation to yet another yacht and a Land Rover. The debacle around the ‘sacking’ of Brian McDermott before Cellino even had the keys to Elland Road must also surely cast doubt over his suitability to own a football club.

If an appeal along with any plan B such as claiming family ownership fail where does it leave the club? Cellino has already invested a significant amount of money in the club including paying off the loan from Enterprise Insurance, paying wages and running costs and covering the cost of loanees Connor Wickham and Jack Butland. In the short term he had vowed not to invest anymore until the ownership had been sorted, in the long term he will want paying back. Leeds are currently racking up losses of £1 million per month, who will fund the club? GFH seem reluctant to invest any more in the club though they will not want to see the club go into administration and potentially lose their £40 million investment. David Haigh has stated that the club is in no danger of going into administration but then who believes anything he says these days?

GFH have been much criticised in their handling of the takeover. Flowers was abruptly cast aside when he questioned the finances of the club and Farnan has seemingly been ignored all together recently. GFH have put all their eggs in one basket and this mornings ruling sees them smashed all over the floor.

If Cellino is out of the running due to the Football Leagues decision they will need to find a new buyer for the club, there is no way GFH will continue to fund the club for any significant period of time. Is Farnan’s offer still on the table and does he have the financial backing to complete a deal? Are there any other potential investors lurking in the wings who are willing to deal with GFH?

The next few weeks will certainly be challenging. Having thought we were close to a conclusion it seems now that any deal to secure the clubs long term future could be a way off. Many Leeds fans had clung to Cellino as our saviour, our change to regain our rightful position in the top echelons of football, but that is just desperation. Years in the wilderness with no significant investment have meant fans are desperate and fall at the feet of anyone flashing a bit of cash. But is a corrupt Italian corn merchant the best answer for OUR club?

I can’t see it within me to agree that he is the best option, I can only see a future with Cellino as future filled with more turbulence. We’ve just got rid of one dodgy owner who dragged the club through the courts, had a suspect financial background and divided the fans, I don’t think we need another, even if he is better dressed. I don’t know what is best for the future of Leeds United, I don’t know what the future holds but I know the next couple of weeks will be very important for the future of our club.

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