Leeds United still in trouble

With the season fast approaching, English Leeds United's hopes of returning to the Championship appear to have been destroyed after the Football League announced on Friday that the club will start their League One campaign with a 15-point deduction.

The Football League will hand over to the club the golden share, effectively the membership rights in the League, without it the club would have been unable to function.

The sanction is a punishment for failure to comply with the League's insolvency policy for clubs which go into administration. The League was unhappy about the decision of KPMG, the administrator, to let Bates buy Leeds back without a Company Voluntary Arrangement (CVA).

Leeds filed an "exceptional circumstances" appeal on the lack of a CVA, but have found little sympathy. The club already launched an appeal against the 15-point deduction.

"We are pleased to announce that the board of the Football League Ltd have agreed to transfer the share in the Football League to Leeds United 2007 Ltd," said the club in a statement.

The Revenue & Customs, which objected to the buy back, is still wanting its share from the club.

Included among the Leeds debt is GBP 7.7 million in unpaid tax. David Hartnett of Revenue and Customs, said that Bates also must reveal the identity of the mysterious backers behind his new bid for the club.

"HMRC believes it is vital that all creditors are treated fairly. HMRC is determined to achieve a full and fair settlement for the taxpayer," Hartnett said. "We are not prepared to enter into any arrangement that lacks complete transparency about the identity of creditors and the terms of any deal being reached."

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.