Contracts needed to clinch a City deal
Milan Mandaric can, in theory, revise the terms of his proposed takeover of Leicester City as many times as he wants, a leading accountant revealed today.
As reported in yesterday's Leicester Mercury, the business tycoon has changed his offer for City, although it still amounts to £25million.
The club's shareholders now have to decide whether to accept the new terms six weeks after giving the go-ahead to Mandaric's initial approach.
The new terms form part of the "heads of agreement" (also known as heads of terms), a legal expression used to describe a document which outlines a proposed deal. Although this agreement is not usually legally binding, in some circumstances it can be.
But a takeover will not actually take place until contracts between Mandaric and City are exchanged.
Steve King, partner at Leicester accountancy firm PKF, said: "In theory you can revise your heads of terms until the cows come home, but both sides have to agree to do it."
He said the revised terms could relate to a wide range of issues, including the ownership of the stadium.
"He could put in all sorts of additional terms," said King.
Mandaric wants the deal to be completed as soon as possible, but there are now real concerns it will not be concluded before the start of the January transfer window on Monday.
The shareholders could also reject the revised terms, or ask for more time to consider them, delaying the process still further.