Leeds United mulls refinancing deal

Leeds United, the crisis-hit Premiership football club, is considering a refinancing in order to cut its huge debts. Options under consideration include a rights issue and a debt-for-equity swap, though it is understood a bond issue has been ruled out.

Leeds has debts of almost £80m and wants to undertake a capital reconstruction in order to reduce the need for the forced sale of players. It has already been forced to sell top stars such as Jonathan Woodgate, Lee Bowyer and Robbie Fowler. There has been constant speculation regarding the possible transfers of other players such as Alan Smith and Paul Robinson.

Leeds wants to find ways of raising cash which do not weaken the playing staff. However, it is not clear how popular a rights issue might be. Shareholders have already seen the shares collapse from 28.5p three years ago to just 4.25p.

Leeds has appointed John Mackenzie as chairman and he will lead the refinancing. He has also been asked to find ways of cutting the club's costs.

Meanwhile, it is understood that, contrary to speculation, Ian McLeod will not be joining Leeds as chief executive after quitting as chief executive of Celtic earlier this week. Mr McLeod has been poached to join a major retailer, thought to be a supermarket group.