Caesarius
13-07-2007, 07:27
Troubled football club Leeds United have been denied entry into the Football League due to their financial plight.
More StoriesBates buys back Leeds
Leeds were relegated to League One at the end of last season and were immediately put in administration by chairman Ken Bates, who promptly bought the club back from KPMG at a reduced rate.
But, despite Bates' strong track-record at turning around the fortunes of financially-stricken sides, the Football League have refused to grant Leeds back their Football Share - thus preventing them from playing in League One.
Effectively, the League are not happy at the decision of KPMG to sell the club back without a Company Voluntary Agreement and are awaiting financial and legal documentation in order to ratify the deal, something Leeds and KPMG were due to supply but have so far failed to.
While this will not prevent the Whites from commencing the League One season in August, it could have long-term implications if they fail to provide the relevant information soon, with the ultimate punishment being ejection from the League.
The statement from the Football League is reproduced below:
"At its meeting in London today, the board of the Football League considered the reported sale of Leeds United by its administrators, KPMG.
"To date, no documentation regarding the sale has been submitted to the League by the administrators.
"Notwithstanding this, the board was asked by the reported purchasers to consider an application to transfer Leeds United's share in the Football League to them.
"The board was unable to consent to this request this morning.
"Instead it has requested, from the administrators, certain required documentation and assurances regarding the sale of the club.
"The board also requires certainty on the current legal proceedings surrounding the administration.
"The board had been expecting the administrators to attend today's meeting, as KPMG originally requested.
"However, the League was informed late yesterday afternoon that they would not be attending, with no explanation provided.
"Additionally, the board expressed concern at the handling of the whole process by the administrators and the chairman was instructed to obtain legal advice in that regard.
"Clearly any further delays in this process will be frustrating for Leeds supporters.
"However, like the club's fans, the board recognises the pressing need for certainty regarding the future of League football in Leeds and has agreed to convene at the earliest opportunity to re-consider the share transfer, once it has been provided with all the relevant information.
"Also, for the avoidance of doubt, the League would like to make it clear that there is nothing in its regulations to prevent a club beginning a new playing season whilst in administration."
Ouch. The troubles never end. I think it was a mistake in the first place to sell back to Bates
More StoriesBates buys back Leeds
Leeds were relegated to League One at the end of last season and were immediately put in administration by chairman Ken Bates, who promptly bought the club back from KPMG at a reduced rate.
But, despite Bates' strong track-record at turning around the fortunes of financially-stricken sides, the Football League have refused to grant Leeds back their Football Share - thus preventing them from playing in League One.
Effectively, the League are not happy at the decision of KPMG to sell the club back without a Company Voluntary Agreement and are awaiting financial and legal documentation in order to ratify the deal, something Leeds and KPMG were due to supply but have so far failed to.
While this will not prevent the Whites from commencing the League One season in August, it could have long-term implications if they fail to provide the relevant information soon, with the ultimate punishment being ejection from the League.
The statement from the Football League is reproduced below:
"At its meeting in London today, the board of the Football League considered the reported sale of Leeds United by its administrators, KPMG.
"To date, no documentation regarding the sale has been submitted to the League by the administrators.
"Notwithstanding this, the board was asked by the reported purchasers to consider an application to transfer Leeds United's share in the Football League to them.
"The board was unable to consent to this request this morning.
"Instead it has requested, from the administrators, certain required documentation and assurances regarding the sale of the club.
"The board also requires certainty on the current legal proceedings surrounding the administration.
"The board had been expecting the administrators to attend today's meeting, as KPMG originally requested.
"However, the League was informed late yesterday afternoon that they would not be attending, with no explanation provided.
"Additionally, the board expressed concern at the handling of the whole process by the administrators and the chairman was instructed to obtain legal advice in that regard.
"Clearly any further delays in this process will be frustrating for Leeds supporters.
"However, like the club's fans, the board recognises the pressing need for certainty regarding the future of League football in Leeds and has agreed to convene at the earliest opportunity to re-consider the share transfer, once it has been provided with all the relevant information.
"Also, for the avoidance of doubt, the League would like to make it clear that there is nothing in its regulations to prevent a club beginning a new playing season whilst in administration."
Ouch. The troubles never end. I think it was a mistake in the first place to sell back to Bates