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Council to buy Leed United training ground
LEEDS United has received a major boost when senior councillors voted to buy their Thorp Arch training ground.
With time running out on a 6m buyback option, the city council's executive board agreed a deal under which the council would borrow money to buy the facility and rent it back to United.
It will be leased to the club for a fixed period at the end of which the club can buy it from the council.
United sold Thorp Arch to Manchester businessman Jacob Adler in 2004 at the height of their financial problems. They were given a 25-year lease and the option to repurchase.
With that option due to expire on October 10 and United unable to raise the money, the club turned to the council for help.
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Executive board members last month rejected the loan idea but have now decided to buy and lease Thorp Arch to United on commercial terms.
The decision – taken after lengthy discussions with press and public excluded – follows examination by council officials of the club's bank statements, accounts, cash flows and financial forecasts.
After the meeting council deputy leader Coun Andrew Carter said: "We are going to continue discussions with the club. We have formulated an offer which we are going to make to them. We obviously want to help if we can."
He said the rent the club paid would cover the council's loan repayments.
He said it had been made clear there was no possibility of the council lending United the 6m and added: "Anything we do must be at no cost to the council tax payer and minimum risk to the council."
Officials will now negotiate details of the offer with the club before submitting it to Coun Carter, council leader Coun Richard Brett, Labour group leader Coun Keith Wakefield and Morley Borough Independent leader Coun Robert Finnigan.
A condition of the deal will be United agreeing to support a range of "football in the community" initiatives.
Leeds United chief executive Shaun Harvey said: "We are delighted to learn that the council wishes to offer us support and we now look forward to continuing discussions to bring this matter to a successful conclusion."
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* Click here to watch the latest edition of The Boot Room as the lads look forward to the game against Gillingham.
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Thursday 24 May 2012
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