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Post by Maximo Mark on Aug 3, 2007 20:25:45 GMT 1
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".
But in making their decision, it was stressed they could not allow Leeds to operate outside the strict rules concerning administration.
Leeds are back under the control of Ken Bates after administrators KPMG sold the club to him for an undisclosed sum.
The CVA would have allowed Leeds to pay off an acceptable amount of their debts to creditors.
"The Football League Board agreed that, notwithstanding the manner in which this administration has been conducted, the club should be permitted to continue in the Football League," said a statement.
"Consequently, the board has decided to make use of the 'exceptional circumstances' provision within the League's insolvency policy, for the first time, and agreed to transfer the club's share in The Football League to LeedsUnited 2007 Ltd. Accordingly, the club's share has now been transferred.
"However, it is acknowledged the club did go into administration and has been unable to comply with the terms of the League's well-established insolvency policy.
"As a result, the board determined this transfer of membership should be subject to Leeds United having a 15-point deduction applicable from the beginning of the 2007/08 season.
"Leeds subsequently have lodged an appeal against this sanction, which will be heard at a special meeting of all League clubs, to be arranged in due course."
Football League chairman Lord Mawhinney met with both KPMG and Bates, telling them to change the CVA, which governs how much creditors will get.
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Excellent, fully deserved for making a mockery of the Administration process!
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Thor
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Post by Thor on Aug 3, 2007 20:26:58 GMT 1
Oh my!
Another relegation for them then!
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Post by Razzle Dazzle on Aug 3, 2007 22:18:27 GMT 1
it is all their own fault, 15 points is harsh but they should of just followed standard procedure and got everything sorted instead of trying to do it on the cheap
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Robbie
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Post by Robbie on Aug 3, 2007 23:57:52 GMT 1
didn't they also have a 10 point deduction last season, albeit on the last day and when they were relegated anyway?
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Thor
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Post by Thor on Aug 4, 2007 0:12:52 GMT 1
They did
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Post by o on Aug 4, 2007 9:24:49 GMT 1
didn't they also have a 10 point deduction last season, albeit on the last day and when they were relegated anyway? Exactly robbie! Seems like someone has it in for Leeds United, this could push them out of existence, relegation to league 2 is almost certain I'd say, it's not even as if they have a very good side. I think the reasoning is that they went into administration and got the -10 points for last season, however they did that isa totally irrelevant, they bent the existing rules that have been changed,m but you cant punish them for that, however much it stinks. But there were problems with ken bates taking control, so the administrators asked for new bids and ended up accepting ken bates' big again anyway, and he is offering creditors more money now, but I think the league are saying as that is happening now, they get another points reduction? I assume it is 15 points as it's a 2nd "offence", the thing is Bates was told to go through this process by Lord Mawhinney wasn't he? So he was doing what he thought was right, so to be penalised stinks of a set up. I hope Leeds win the appeal, and if they dont, I will be cheering them on for every point they get and hope they stay up. I'll say one thing, if this had happened to a London club, it would not have been like this.
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Post by Panda on Aug 4, 2007 10:15:56 GMT 1
The penalty comes because Bates was trying to take the easy way out by paying the creditors virtually f**k all and the league are not allowing him to get away with it.
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Post by Razzle Dazzle on Aug 4, 2007 10:32:59 GMT 1
The penalty comes because Bates was trying to take the easy way out by paying the creditors virtually f**k all and the league are not allowing him to get away with it. exactly and i doubt a london team would be so tight or stupid to try and scam the system after already been deducted 10 points last year. the only other option was not to let them play this season because leeds a practically in limbo! (due to ken bates)
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Post by Panda on Aug 4, 2007 10:36:58 GMT 1
The penalty comes because Bates was trying to take the easy way out by paying the creditors virtually f**k all and the league are not allowing him to get away with it. and i doubt a london team would be so tight or stupid to try and scam the system after already been deducted 10 points last year. They would if Ken Bates was in charge of them.
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Post by rubcale on Aug 4, 2007 10:38:10 GMT 1
The penalty comes because Bates was trying to take the easy way out by paying the creditors virtually f**k all and the league are not allowing him to get away with it. Quite agree.
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Post by Razzle Dazzle on Aug 4, 2007 10:45:13 GMT 1
didn't they also have a 10 point deduction last season, albeit on the last day and when they were relegated anyway? they got a 10 point deduction last season for going into administration, 99% of people would argue they should of been deducted points for the forthcoming season anyway because they slyly called into administration after they were relegated. they had to win 20-0 last game of the season to stay up. this second points deduction is for something totally different...see below "Football League chiefs acted over the way Bates had bought back the debt-ridden club for a fraction of the £35.5million it owed creditors when the chairman put it into administration in May, following relegation from the Championship. Administrators KPMG controversially accepted Bates' bid, through his new Cayman Islands registered company, to buy the club's assets and pay just 11.2 pence in the pound to the creditors But the new holding company, Leeds United 2007 Ltd, failed to agree a Company Voluntary Arrangement to pay off an acceptable amount of their debts. Football League chiefs decided the club must not be allowed to write off its debts by simply calling in the administrators." basically the 15 point deduction is a punishment for failure to comply with the competition's insolvency policy for clubs which go into administration. because of that leeds were not given their "share" to play in the league. it is leeds fault they never attained their share and the penalty for this is a 10 point deduction, as this is the second offence in a matter of month it went upto a 15 point deduction. i hope leeds get the points reduced to around -10 ask rotherham fans, they started on -10 for going into administration and leeds have broke major rules twice.
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Post by JukeBoxJury on Aug 4, 2007 11:35:41 GMT 1
15 points is really not a lot, it's only 5 wins which should arguably still be easy for a team of Leeds' quality. However, they have much bigger issues right now - the players haven't received any wages since June, and because they're not allowed to transfer players in whilst their finances are in tatters, they don't actually have a goalkeeper right now
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Thor
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Post by Thor on Aug 4, 2007 11:39:30 GMT 1
15 points is really not a lot, it's only 5 wins which should arguably still be easy for a team of Leeds' quality. However, they have much bigger issues right now - the players haven't received any wages since June, and because they're not allowed to transfer players in whilst their finances are in tatters, they don't actually have a goalkeeper right now 5 wins is not easy, even if they do get those they're going to be bottom for a few months anyway 65 points is going to be difficult considering they couldn't manage 50 points in their previous division
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Matt Aloud
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Post by Matt Aloud on Aug 4, 2007 11:59:10 GMT 1
Leeds v Darlo next year
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Post by Panda on Aug 4, 2007 12:06:10 GMT 1
Leeds v Darlo next year Not if Darlo go up!
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Senior
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Post by Senior on Aug 4, 2007 13:18:00 GMT 1
Leeds are completely finished, i'll be amazed if they're still in existance this time next year.
KPMG should be investigated for their disgraceful handling of this administration
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Post by o on Aug 4, 2007 17:16:35 GMT 1
I do think this could be the end of Leeds, which at the end of the day is very sad, and all because some people spent way above their means, and where are they now, why are they not accountable?
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Post by Maximo Mark on Aug 4, 2007 20:18:34 GMT 1
didn't they also have a 10 point deduction last season, albeit on the last day and when they were relegated anyway? Yes, which is also what Boston did upon being relegated to the Conference or whatever the f*ck it's called now. The Conference were angry and kicked them out of the league so were relegated two leagues. For Leeds to do this AND also what else it is Bates has been doing a 15 point penalty is quite lenient in comparison!
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Post by o on Aug 4, 2007 20:31:17 GMT 1
And yet teams like Leicester and Notts County stayed in or used administration to better themselves and clear debts.
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Thor
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Post by Thor on Aug 4, 2007 20:39:21 GMT 1
That was before the new rules came in, hopefully this will teach clubs to live within their means
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