Gerald Krasner
Encyclopedia
Gerald Krasner FCA, FABCA (born 1949) was a partner in Bartfields, a corporate recovery firm based in the United Kingdom
. He is a former chairman of the West Yorkshire
football club Leeds United A.F.C.
. Krasner, on behalf of Bartfields, was part of a team which worked with the DTI
in its investigations.
Krasner's reign witnessed the relegation of Leeds United from the English Premier League when a 3-3 draw against Charlton Athletic wasn't enough to beat the drop to Division One (6) (since re-branded the Coca Cola Championship ). Popular choice and Leeds legend Eddie Gray failed to rejuvenate the club after he was called in to a caretaker manager role, replacing the sacked Peter Reid
midway through a torrid 2003/2004 season. Gray was largely blameless for the performance of the team, with the entire foundation being sold out from underneath him. The players faced the prospect that their wages might not be paid from one month to the next, as Leeds United seemed on the verge of terminal liquidation.
In the event under Krasner's stewardship Leeds United managed to tread softly until they could be thrashed out for their now clearly unrepayable debts. Large amounts of which had to be effectively written off by the clubs debts as they had been taken out in the name of the now insolvent LUFC PLC. Krasner and his consortium eventually sold the club to former Chelsea supremo Ken Bates
, a flamboyant character who had himself recently sold Chelsea FC to billionaire
Russia
n oligarch
Roman Abramovich
. Chelsea had reportedly been carrying similar levels of debt to Leeds before Abramovich transformed the west London
team into a strong force in English football. Bates had been in the market to invest after being ousted from his position at Chelsea by Abramovich.
By this time, and perhaps to his credit, Krasner's essential mission; managing the clubs massive debts to acceptable levels, was now accomplished. Like his predecessor Professor McKenzie, his appointment and the consortium he led, were little more than a stop-gap solution. Krasner's personality or background were never that of the traditional "footballing chairman". His consortium lacked the financial muscle for the re-investment needed in the team to prevent it from slipping further down the footballing divisions. Due to these realities, he and his board were more open to the advances of Bates than the South Yorkshire
outfit. Kenneth Bates was unveiled as Leeds United's new owner and chairman in 2005 and continues in that role to the present date.
It is doubtful that supporters of Leeds United will ever look back on the "Krasner era" with much fondness. These were arguably the darkest days in the entire history of the football club. But from a financial perspective it could be said that Gerald Krasner and his consortium were successful in their aim when they launched their takeover, which was to save the club from the very real possibility of extinction. Krasner has since retired from the public spotlight to focus on his previous role at Bartfields.
to act as administrator of AFC Bournemouth in February 2008 and came within 24 hours of placing the financially troubled club into liquidation on 3 separate occasions due to the club being unable to pay players' wages and other costs. On all 3 occasions large sums of money from the AFC Bournemouth chairman Jeff Mostyn on the 11th hour, to continue the administration, proved to save the football club from liquidation when the administration ended in August 2008 with a successful takeover.
The new owners took control and the Football League "Golden Share", which gives a club the right to play in the league, was successfully transferred to the new company. Due to failing to follow Football League insolvency rules, by failing to agree a CVA with creditors, the football club was hit with a 17 point deduction and was ordered to pay unsecure creditors the amount offered at the time of the rejected CVA (10p in the pound) within 2 years or face being expelled from the Football League.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. He is a former chairman of the West Yorkshire
West Yorkshire
West Yorkshire is a metropolitan county within the Yorkshire and the Humber region of England with a population of 2.2 million. West Yorkshire came into existence as a metropolitan county in 1974 after the passage of the Local Government Act 1972....
football club Leeds United A.F.C.
Leeds United A.F.C.
Leeds United Association Football Club are an English professional association football club based in Beeston, Leeds, West Yorkshire, who play in the Football League Championship, the second tier of the English football league system...
. Krasner, on behalf of Bartfields, was part of a team which worked with the DTI
DTI
DTI may refer to:*Debt-to-income ratio*Deep trench isolation*Defense Technology Institute, the Thai defense technology public organisation*Department of Trade and Industry, a government department in several countries*Detroit, Toledo and Ironton Railroad...
in its investigations.
Leeds United Takeover
In 2004, Krasner led the consortium of local businessmen which successfully took-over the club.Krasner's reign witnessed the relegation of Leeds United from the English Premier League when a 3-3 draw against Charlton Athletic wasn't enough to beat the drop to Division One (6) (since re-branded the Coca Cola Championship ). Popular choice and Leeds legend Eddie Gray failed to rejuvenate the club after he was called in to a caretaker manager role, replacing the sacked Peter Reid
Peter Reid
Peter Reid is an English football manager, pundit and retired player, who is currently without a club since his departure from Plymouth Argyle.A defensive midfielder in his playing days, Reid enjoyed a long and successful career...
midway through a torrid 2003/2004 season. Gray was largely blameless for the performance of the team, with the entire foundation being sold out from underneath him. The players faced the prospect that their wages might not be paid from one month to the next, as Leeds United seemed on the verge of terminal liquidation.
In the event under Krasner's stewardship Leeds United managed to tread softly until they could be thrashed out for their now clearly unrepayable debts. Large amounts of which had to be effectively written off by the clubs debts as they had been taken out in the name of the now insolvent LUFC PLC. Krasner and his consortium eventually sold the club to former Chelsea supremo Ken Bates
Ken Bates
Kenneth William Bates is a British businessman and football executive. The current chairman and now owner of Leeds United AFC, Bates was previously chairman and majority shareholder of Chelsea FC from 1982 until 2003....
, a flamboyant character who had himself recently sold Chelsea FC to billionaire
Billionaire
A billionaire, in countries that use the short scale number naming system, is a person who has a net worth of at least one billion units of a given currency, usually the United States dollar, Euro, or Pound sterling. Forbes magazine updates a complete list of U.S. dollar billionaires around the...
Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
n oligarch
Oligarch
Oligarch may refer to:* A member of an oligarchy, a form of government* Business oligarch* Russian oligarch...
Roman Abramovich
Roman Abramovich
Roman Arkadyevich Abramovich is a Russian businessman and the main owner of the private investment company Millhouse LLC.In 2003, Abramovich was named Person of the Year by Expert, a Russian business magazine. He shared this title with Mikhail Khodorkovsky...
. Chelsea had reportedly been carrying similar levels of debt to Leeds before Abramovich transformed the west London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
team into a strong force in English football. Bates had been in the market to invest after being ousted from his position at Chelsea by Abramovich.
By this time, and perhaps to his credit, Krasner's essential mission; managing the clubs massive debts to acceptable levels, was now accomplished. Like his predecessor Professor McKenzie, his appointment and the consortium he led, were little more than a stop-gap solution. Krasner's personality or background were never that of the traditional "footballing chairman". His consortium lacked the financial muscle for the re-investment needed in the team to prevent it from slipping further down the footballing divisions. Due to these realities, he and his board were more open to the advances of Bates than the South Yorkshire
South Yorkshire
South Yorkshire is a metropolitan county in the Yorkshire and the Humber region of England. It has a population of 1.29 million. It consists of four metropolitan boroughs: Barnsley, Doncaster, Rotherham, and City of Sheffield...
outfit. Kenneth Bates was unveiled as Leeds United's new owner and chairman in 2005 and continues in that role to the present date.
It is doubtful that supporters of Leeds United will ever look back on the "Krasner era" with much fondness. These were arguably the darkest days in the entire history of the football club. But from a financial perspective it could be said that Gerald Krasner and his consortium were successful in their aim when they launched their takeover, which was to save the club from the very real possibility of extinction. Krasner has since retired from the public spotlight to focus on his previous role at Bartfields.
AFC Bournemouth Administration
Krasner was appointed alongside Begbies TraynorBegbies Traynor
Begbies Traynor is a firm specialising in corporate restructuring. They were formed in 1989, expanded through mergers and organic growth and were floated in 2004. The company employs over 500 people and has 45 offices around the United Kingdom.-History:The company was formed as Traynor & Partners...
to act as administrator of AFC Bournemouth in February 2008 and came within 24 hours of placing the financially troubled club into liquidation on 3 separate occasions due to the club being unable to pay players' wages and other costs. On all 3 occasions large sums of money from the AFC Bournemouth chairman Jeff Mostyn on the 11th hour, to continue the administration, proved to save the football club from liquidation when the administration ended in August 2008 with a successful takeover.
The new owners took control and the Football League "Golden Share", which gives a club the right to play in the league, was successfully transferred to the new company. Due to failing to follow Football League insolvency rules, by failing to agree a CVA with creditors, the football club was hit with a 17 point deduction and was ordered to pay unsecure creditors the amount offered at the time of the rejected CVA (10p in the pound) within 2 years or face being expelled from the Football League.