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Leeds United In Administration

Leeds United has today gone into administration in a move that has confirmed the clubs relegation from the Championship.

It is believed that soon after administrators KPMG were appointed, there had been an agreement for the club to be sold back to a consortium led by majority share holder Ken Bates.

KPMG revealed that club debt had reached around 35million and had been issued a winding up order by HM Revenue &Customs for 5million. Had this not been paid then the club would have been liquidated.

As per the league rules that were introduced in 2003 this now means that Leeds are docked 10 points, however it has been noted that after discussions with the Football League that the penalty will be taken this season meaning that the club will finish bottom of the table. About as good as this news gets, Leeds will start life in League One on 0 points like everyone else instead of -10.

The statement from KPMG in full reads:

'Richard Fleming, Mark Firmin and Howard Smith, of KPMG Restructuring, were today appointed administrators of Leeds United Association Football Club Limited at the request of the club's directors.

Shortly after their appointment the joint administrators agreed to sell the business and its assets to a newly formed company called Leeds United Football Club Limited, the directors of which are Ken Bates, Shaun Harvey and Mark Taylor.

The sale of the club is subject to approval by its creditors, via a Company Voluntary Arrangement (CVA).

This would see creditors forgoing a significant element of their debt, in order to allow the club to continue trading under new ownership. The creditors' meeting, to consider the CVA, will be held before the end of May. The Football League will also need to approve the sale.'

ichard Fleming, joint administrator and KPMG restructuring partner, said: 'We were asked by the board of directors to advise Leeds United on Monday 30 April 2007.

The club has experienced significant financial difficulty for some years and was burdened with historic debt and wage structures.

It was necessary for the club to enter administration as its balance sheet dated 31 March 2007 indicated debts totalling approximately 35million, with a cash injection of approximately 10million required to continue trading.

Further, Her Majesty's Revenue & Customs (HMRC) recently issued a winding up petition for approximately 5million. If this debt had not been paid by 25 June 2007, the club may have been forced into liquidation.

The administrators understand from discussions with the Football League that the administration will result in the immediate deduction of 10 points from the club's current points total in this years Championship. This means that next season the club will start the campaign in League One with no points deducted.'

leming concluded: 'This agreement has been reached quickly to maximise the possibility of survival of this major football club, to minimise uncertainty for all the club's stakeholders and supporters and to allow the club to plan ahead for next season.

There is now a big decision for the creditors to make at their forthcoming meeting.'

BR>





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The Journalist

Writer: LUFC1 Mail feedback, articles or suggestions

Date:Friday May 4 2007

Time: 4:40PM

Your Comments

Surely the points should come off next season
Johnny Kipper
What can I say? I'm not a Leeds fan but I am a football fan so, as one football fan to others, I genuinely sympathise with Leeds fans over what's happened at their club. It must be so frustrating and heartbreaking to see men like Peter Risdale and Ken Bates constantly playing games with something that you hold so dear and dragging your club, your hopes and your dreams down when the gambles fail to pay off. Morally, if not legally, it's criminal that such people not only get away with it but that they're empowered to do it again and again. To an outsider, it's like watching a drunk driver walk away from the pile-up that he's caused to get into another car so that he can repeat the feat a mile down the road. To a Leeds fan, it must feel like being strapped to him. It's shocking that Leeds United have fallen so far, so fast. There but for the grace of God, and all that. Regardless of rivalries, I'm sure that others will join me in wishing their fans (the victims) all the best for the future, no matter what that future brings.
Harry P
No the deduction of points from a club going into liquidation is Immediate. As stated the club will start next season with a clean sheet. Bates has his head screwed on when it comes to business that is, even after all these years I doubt he knows nowt about football and less about Leeds United.
col8
Feckin scandalous - just like what Boston have done today!
merlin
WELL THERE OFF THIS SEASON!PARTY, UNLUCKY LADIES...
tedpowelluk
thats us down
Super-Leeds
but not for good
Super-Leeds
Although it may feel like you've fallen off the end of the world, don't fret 'cause there is always a way to pull your self back up (Not sure if Bates has the answer though). From a lifelong Owl I wish you all the best and say don't lose hope. In all honesty I want to see all Yorkshire teams succeed that includes the Blades. YORKSHIRE YORKSHIRE YORKSHIRE!!!!! Goodluck LUFC.
Owlsmad
I did have to laugh a Master Bates, he said Leeds are still one of the big six! Yeah after Forest, Hartlepool, Yeovil, Swansea and Tranmere.
Smurf
well everybody got their wishes and we got deducted points...still who cares we are leeds and we march on!
yorkshirepride1
 

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