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Leeds requests FA arbitration

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English Leeds United followed through on its threat to keep battling a 15-point penalty by the Football League.

The club has written the FA to ask that the penalty be reviewed by an independent arbitration tribunal — and have asked that the hearing be public.

Leeds was hit with the penalty 4 Aug. when it was granted its golden share — essentially its ticket to play in the league — because of administration.

It was an odd journey for the club. Ken Bates sent the club into administration, but had the backing of a major creditor. So his lowball 7p and 8p offers for every GBP was deemed good enough by a majority of creditor shares.

That didn't go over well with HM Revenue and Customs, which took Bates to High Court due to his debt. KPMG, administering the club, put Leeds up for sale. Bates bought it back and vowed to pay 50p per GBP owed.

Bates' purchase, however, did not bring the club out of administration, breaching league rules by not using a CVA to end administration. The league's 71 clubs voted — with more than three-quarters favouring the action — to sanction Leeds.
Source: euFootball.BIZ © Copyright 2006 - All rights reserved.

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