[Soccer] Relegated Leeds in administration


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Leeds United have been relegated to League One after being deducted 10 points for going into administration.

The 10-point deduction - in accordance with Football League rules - means Leeds will finish the season at the bottom of the Championship.

However, they will not lose any points for the start of their first season in League One in August.

Administrator KPMG has already agreed to sell the club to a newly-formed company led by chairman Ken Bates.

A KPMG statement said: "Shortly after their appointment the joint administrators agreed to sell the business and its assets to a newly formed company.

"This company is 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).

"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."

Former Chelsea chairman Bates hailed a new era for the club - but also criticised the old regime for incurring huge debts.

"The action taken brings to an end the financial legacy left by others that we have spent millions of pounds trying to settle," said Bates.

"But the important thing now is not to view this as the end, but the beginning of a new era.

"The financial burden of the past finally pushed the club into administration following the issuing of a winding up petition by HM Revenue & Customs, who will be one of the company's major creditors.

"The other parties who will suffer the biggest financial loss are institutions from which the board arranged funding: Astor Investment Holdings, Krato Trust and Forward Sports Fund who collectively will lose in excess of ?22m."

The Football League has confirmed Leeds' 10-point deduction and expressed its disappointment.

"Following confirmation that Leeds United have obtained an administration order, the Football League can confirm that the club has been deducted 10 points from its 2006/07 tally," said head of communications John Nagle.

"Given the recent reduction in the numbers of clubs resorting to formal insolvency proceedings, it is disappointing that Leeds United have had to seek the protection of an administration order.

"Discussions have already begun aimed at establishing how Leeds United intend exiting administration.

"This will have to include complying with the League's insolvency policy under which all 'football debts' must be settled in full."

KPMG revealed Leeds had debts "totalling approximately ?35m, with a cash injection of approximately ?10m required to continue trading".

The fact they needed to score like 9 goals to survive this just about puts the icing on the cake really...

Yeah, knowing they would never do enough to survive, they go into administration. This means they get the 10 point deduction now (when they were already relegated), and not in the new season - which they would have got if they went into administration in the off season.

As soon as RA pulls his money from Chelsea the same thing will happen to them.

Chelsea are usually 80 odd million in the red every season, so they should be docked points already.

I heard even though when Leeds United went into administration Ken Bates offered to buy Leeds United before any interested parties had a chance to bid.

Leeds are on their way out of the professional leagues.

Leeds made some really stupid moves in the transfer market. Selling players and then still paying their wages (or part of) for years after they were sold.

Bizarre transfer conditions meant Leeds United still paid a significant proportion of Fowler's wages.
from wikipedia.
I remember when they bought Rio off us...it was for amazing money...

But they made a canny bit off selling him to Man U tho, i think he was Leeds' the best sale.

It was selling players like Smith, Viduka and Kewell far too late that was the downfall, but its easy looking back in hindsight, and you cant sell good players and expect to still do well.

Thats why i love players like Gary Kelly, there for the duration, no matter what.

What has happened to Leeds all this past few years?

Would you like the short version?

Leeds spent money they never had, which they thought they would get back if they where successful ------> they where not successful ------> they had to sell there best players to clear there debts ------> they got relegated

Would you like the short version?

Leeds spent money they never had, which they thought they would get back if they where successful ------> they where not successful ------> they had to sell there best players to clear there debts ------> they got relegated

Can I add in two facts.

Cardiff beat leeds when they were top of the prem. Soon after, leeds' demise started.

The current cardiff chairman is probably the reason for their demise.

So I'm proud to say we had a hand in it :rofl:

Thought you where a Man Utd fan :p

Man Utd and Cardiff. (Utd cos my mother supports them, Cardiff because my father supports them).

Gonna be difficult if cardiff do manage to get into the prem though, though will probably end up supporting cardiff more cos their my local side. (never had that problem before lol, cos my first cardiff game was back when we were in division 3).

Man Utd and Cardiff. (Utd cos my mother supports them, Cardiff because my father supports them).

Gonna be difficult if cardiff do manage to get into the prem though, though will probably end up supporting cardiff more cos their my local side. (never had that problem before lol, cos my first cardiff game was back when we were in division 3).

Ha ha, I always had you down as one of those out of town glory hunting Man Utd fans ;)! Seriously though, the majority of Manchester supports Manchester City, whereas most Man Utd supporters are not actually from Manchester! It is a well known fact...why else do you think Man City fans don't eat prawns like Man Utd fans :rofl:??!?!?!?!

Ha ha, I always had you down as one of those out of town glory hunting Man Utd fans ;)! Seriously though, the majority of Manchester supports Manchester City, whereas most Man Utd supporters are not actually from Manchester! It is a well known fact...why else do you think Man City fans don't eat prawns like Man Utd fans :rofl:??!?!?!?!

Something totally random now Ricky Hatton was on the radio earlier and said he has asked Wayne Rooney to carry the title belt for him in Las Vegas strange that he supports Man City...:laugh:

  • 2 months later...
Leeds have received permission to play in League One this season after being granted their Football League share but must do so with a 15-point deduction.

The club have appealed against the sanction imposed by the Football League and their case will be heard at a special meeting of all league clubs.

Doubts had been raised over Leeds' future after the club failed to agree a Company Voluntary Arrangement (CVA).

The Football League accepted there were "exceptional circumstances".

I wonder how long it'll be before they are playing Farsley Celtic, Can't help but feel there is something seriously wrong in the way Ken Bates (the bloke is a curse to any club) has acquired the club yet again.

I wonder how long it'll be before they are playing Farsley Celtic, Can't help but feel there is something seriously wrong in the way Ken Bates (the bloke is a curse to any club) has acquired the club yet again.

Won't be long I wouldn't think because 15 points down from the start is hard to come back from.

Good old Ken Bates, screwing everything up. His type of figure does not help leeds in anyway.

I have to say I am still amazed he was allowed to buy them back because one of the rival bids had alot more money behind them.

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