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League hits Leeds with 15-point deduction
Leeds United were last night given permission by the Football League to start the
new season but they were given an unprecedented 15-point deduction for failing
to follow the competition's insolvency rules.
Not-so-mighty Whites: Leeds will begin the season 15 points down
Following a meeting of the League's board yesterday, officials agreed to transfer
the share Leeds need to start the season even though Ken Bates bought the
club out of administration without obtaining the agreement with their £35 million
of creditors.
With the administrator, KPMG, refusing to reconstitute the Company Voluntary
Arrangement, the League said they had no choice but to grant Bates's new
company, Leeds United 2007, the right to kick off the League One season
under "exceptional circumstances". But the club's hopes of returning to the
Championship have been dealt a major blow.
Leeds said last night they would appeal and their fate will be decided by a
meeting of all 72 League clubs.
The date for that was uncertain last night but it is likely the League will want to
draw a line under the affair before Dennis Wise's side travel to Tranmere for their
opening game.
"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," the League said.
"Consequently, the board have 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 Leeds United
2007 Ltd. 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... a 15-point deduction."
Couldn't happen to a nicer bunch I say
Leeds United were last night given permission by the Football League to start the
new season but they were given an unprecedented 15-point deduction for failing
to follow the competition's insolvency rules.
Not-so-mighty Whites: Leeds will begin the season 15 points down
Following a meeting of the League's board yesterday, officials agreed to transfer
the share Leeds need to start the season even though Ken Bates bought the
club out of administration without obtaining the agreement with their £35 million
of creditors.
With the administrator, KPMG, refusing to reconstitute the Company Voluntary
Arrangement, the League said they had no choice but to grant Bates's new
company, Leeds United 2007, the right to kick off the League One season
under "exceptional circumstances". But the club's hopes of returning to the
Championship have been dealt a major blow.
Leeds said last night they would appeal and their fate will be decided by a
meeting of all 72 League clubs.
The date for that was uncertain last night but it is likely the League will want to
draw a line under the affair before Dennis Wise's side travel to Tranmere for their
opening game.
"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," the League said.
"Consequently, the board have 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 Leeds United
2007 Ltd. 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... a 15-point deduction."
Couldn't happen to a nicer bunch I say