Leeds down after points dock
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Leeds United, who were already on the verge of relegation from the Championship, have entered administration, incurring with it a 10-point penalty.
United appointed administrators KPMG who immediately agreed to sell the club to a newly formed company called Leeds United Football Club Limited, the directors of which are Ken Bates, Shaun Harvey and Mark Taylor.
Richard Fleming, joint administrator and KPMG restructuring partner, revealed Leeds' debt totalled £35million.
Fleming told KPMG's website: "We were asked by the board of directors to advise Leeds United on Monday 30th 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 31st March 2007 indicated debts totalling approximately £35million, with a cash injection of approximately £10million required to continue trading.
"Further, Her Majesty's Revenue & Customs recently issued a winding up petition for approximately £5million. If this debt had not been paid by 25th June 2007, the club may have been forced into liquidation."
Football League rules state any club entering administration is to be docked 10 points.
Administrators understand that these points will be deducted from this year's total and not next, thus confirming the club's relegation to League One, but also ensuring, crucially, that The Whites start next season with a clean slate. -
i feel sad for them -
no one seems interested to buy them
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Leeds have been relegated to League One after going into administration - and incurring an immediate 10-point penalty. But shortly after KPMG's appointment as administrators they agreed to sell the club back to a newly-formed company - with familiar faces Ken Bates, Shaun Harvey and Mark Taylor as its directors.
Ken Bates just bought them again...