Leeds in administration

[Sargey]

Might be old news, but here it is anyway.

 

http://www.kpmg.co.uk/news/detail.cfm?pr=2873

 

Leeds United Football Club – KPMG Administrators appointed 

KPMG News 04 May 2007

 

Richard Fleming, Mark Firmin and Howard Smith, of KPMG Restructuring, were today appointed administrators of Leeds United Association Football Club Limited at the request of the Club’s directors.

 

Shortly after their appointment the joint administrators agreed to sell the business and its assets to a newly formed company called Leeds United Football Club Limited, the directors of which are Ken Bates, Shaun Harvey and Mark Taylor.

 

The sale of the Club is subject to approval by its creditors, via a Company Voluntary Arrangement (CVA). This would see creditors forgoing a significant element of their debt, in order to allow the Club to continue trading under new ownership. The creditors’ meeting, to consider the CVA, will be held before the end of May. The Football League will also need to approve the sale.

 

Richard Fleming, joint administrator and KPMG Restructuring partner said:

 

“We were asked by the board of directors to advise Leeds United on Monday 30 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 31 March 2007 indicated debts totalling approximately £35 million, with a cash injection of approximately £10 million required to continue trading. Further, Her Majesty’s Revenue & Customs (HMRC) recently issued a winding up petition for approximately £5 million. If this debt had not been paid by 25 June 2007, the Club may have been forced into liquidation.”

 

The administrators understand from discussions with the Football League that the administration will result in the immediate deduction of 10 points from the Club’s current points total in this years Championship. This means that next season the club will start the campaign in League One with no points deducted.

 

Richard Fleming concluded: “This agreement has been reached quickly to maximise the possibility of survival of this major football club, to minimise uncertainty for all the Club’s stakeholders and supporters and to allow the Club to plan ahead for next season. There is now a big decision for the creditors to make at their forthcoming meeting.”

 

 

-ENDS-

 

[Fugazi]

10-point deduction will make a big fucking difference this season like.

[Northern Monkey]

Good move for the club regarding next season, and funny as fuck for the rest of us.

 

Dirty, dirty Leeds.

[Dave]

10-point deduction will make a big fucking difference this season like.

 

I can't see how it's fair to let them do it this season. They should be docked them at the start of next year, surely? Otherwise there is no disadvantage whatsoever.

[Stevie]

Leeds United Football Club – KPMG Administrators appointed

 

KPMG News 04 May 2007

 

Richard Fleming, Mark Firmin and Howard Smith, of KPMG Restructuring, were today appointed administrators of Leeds United Association Football Club Limited at the request of the Club’s directors.

 

Shortly after their appointment the joint administrators agreed to sell the business and its assets to a newly formed company called Leeds United Football Club Limited, the directors of which are Ken Bates, Shaun Harvey and Mark Taylor.

 

The sale of the Club is subject to approval by its creditors, via a Company Voluntary Arrangement (CVA). This would see creditors forgoing a significant element of their debt, in order to allow the Club to continue trading under new ownership. The creditors’ meeting, to consider the CVA, will be held before the end of May. The Football League will also need to approve the sale.

 

Richard Fleming, joint administrator and KPMG Restructuring partner said:

 

“We were asked by the board of directors to advise Leeds United on Monday 30 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 31 March 2007 indicated debts totalling approximately £35 million, with a cash injection of approximately £10 million required to continue trading. Further, Her Majesty’s Revenue & Customs (HMRC) recently issued a winding up petition for approximately £5 million. If this debt had not been paid by 25 June 2007, the Club may have been forced into liquidation.”

 

The administrators understand from discussions with the Football League that the administration will result in the immediate deduction of 10 points from the Club’s current points total in this years Championship. This means that next season the club will start the campaign in League One with no points deducted.

 

Richard Fleming concluded: “This agreement has been reached quickly to maximise the possibility of survival of this major football club, to minimise uncertainty for all the Club’s stakeholders and supporters and to allow the Club to plan ahead for next season. There is now a big decision for the creditors to make at their forthcoming meeting.”

 

See when I see Tottenham fans posting shit on here about their club, I wonder why they don't fuck off to the Arsenal board and tell people that care. 

 

In contrast, all through my life Leeds have been a club that have been relevant to us, you look down the years, many, many seasons the biggest gate at Elland Road was against Newcastle, and the biggest gate at SJP was against Leeds.  Leeds was always a rivalry for us, even our broad catchment area overlaps, and while I used to hate Leeds, I'd be very, very sad if they can't find the £5m to save themselves by June 27th.

 

[Rob W]

It was on 5Live last night - they have to go into administration NOW before the end of the season

 

that way the 10 point penalty is incurred this season

 

if they delay and go into admin after Sunday the panalty applies NEXT season

 

Since they are effetcively down right now they are biting the bullet to give themselves a chance of bouncing back next season

 

Personally I'd be overjoyed if they went completely bust

[midds]

A cheeky £500k bid for David Healy anyone???

[Cajun]

A cheeky £500k bid for David Healy anyone???

 

Good point, has a very good record at International level but apparently doesnt look the same player for them. Still can't see it costing much to have a look and I am sure we would get the money back (or maybe even a profit) if he didnt work out!

[SEMTEX]

10-point deduction will make a big fucking difference this season like.

 

I can't see how it's fair to let them do it this season. They should be docked them at the start of next year, surely? Otherwise there is no disadvantage whatsoever.

 

im assuming the rule hasn't been termed well enough to do this & Leeds are taking full advantage.

[nfrederi]

10-point deduction will make a big f****** difference this season like.

 

I can't see how it's fair to let them do it this season. They should be docked them at the start of next year, surely? Otherwise there is no disadvantage whatsoever.

 

With the precedent being set with the West Ham fine....no points deducted due to fact it would be the players and fans who unfairly suffer....can it be fair at all.

[Guest Sniffer]

I don't like to see any club go into administration. Too close to home for me as it could easily happen to everyone bar a small handful. And I'm not sure we are in that handful.

[Thespence]

I would bid/take there 3 youth internationals:

 

Ben Gordon - Leeds United - Defender

DOB: 2/3/91

A determined left back with great pace and defensive attributes, Ben is strong and composed on the ball and gets forward eagerly.

 

 

Daniel Rose, Leeds United

Midfield, 2/7/1990

A midfielder who loves to attack, Daniel is also ferocious in the tackle. Daniel wears number 42 for Leeds and was involved in February's trip to the Algarve, where England beat Portugal and drew with France. Influential as England qualified for the Euros.

 

Ross Wilkinson - Leeds United

Initially on standby, Ross has been called into the squad after James Tomkins was withdrawn through injury. After playing for the club's under-18s last season, Ross has made the step-up to the reserve team, making the centre-half position his own

 

 

 

[Cajun]

We were linked to that Rose fella before.

[Thespence]

I can't see how it's fair to let them do it this season. They should be docked them at the start of next year, surely? Otherwise there is no disadvantage whatsoever.

 

The administrators were appointed during this season thought. No disadvantage? I am sure being in administration is  a dream

[Martin Lol]

Leeds United Football Club KPMG Administrators appointed

 

KPMG News 04 May 2007

 

Richard Fleming, Mark Firmin and Howard Smith, of KPMG Restructuring, were today appointed administrators of Leeds United Association Football Club Limited at the request of the Clubs directors.

 

Shortly after their appointment the joint administrators agreed to sell the business and its assets to a newly formed company called Leeds United Football Club Limited, the directors of which are Ken Bates, Shaun Harvey and Mark Taylor.

 

The sale of the Club is subject to approval by its creditors, via a Company Voluntary Arrangement (CVA). This would see creditors forgoing a significant element of their debt, in order to allow the Club to continue trading under new ownership. The creditors meeting, to consider the CVA, will be held before the end of May. The Football League will also need to approve the sale.

 

Richard Fleming, joint administrator and KPMG Restructuring partner said:

 

We were asked by the board of directors to advise Leeds United on Monday 30 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 31 March 2007 indicated debts totalling approximately £35 million, with a cash injection of approximately £10 million required to continue trading. Further, Her Majestys Revenue & Customs (HMRC) recently issued a winding up petition for approximately £5 million. If this debt had not been paid by 25 June 2007, the Club may have been forced into liquidation.

 

The administrators understand from discussions with the Football League that the administration will result in the immediate deduction of 10 points from the Clubs current points total in this years Championship. This means that next season the club will start the campaign in League One with no points deducted.

 

Richard Fleming concluded: This agreement has been reached quickly to maximise the possibility of survival of this major football club, to minimise uncertainty for all the Clubs stakeholders and supporters and to allow the Club to plan ahead for next season. There is now a big decision for the creditors to make at their forthcoming meeting.

 

See when I see Tottenham fans posting s*** on here about their club, I wonder why they don't f*** off to the Arsenal board and tell people that care.  

 

In contrast, all through my life Leeds have been a club that have been relevant to us, you look down the years, many, many seasons the biggest gate at Elland Road was against Newcastle, and the biggest gate at SJP was against Leeds.  Leeds was always a rivalry for us, even our broad catchment area overlaps, and while I used to hate Leeds, I'd be very, very sad if they can't find the £5m to save themselves by June 27th.

 

 

Maybe the Leeds fans are too apathetic to bother to post here.  Personally, I'm not bothered whether they go into liquidation or not.  I made a small donation to help Wrexham but I wouldn't cross over the road to help Leeds tbh.

[1878]

We were linked to that Rose fella before.

 

The weekend papers said he was coming to Everton

 

We're moving into a brand new training complex/academy in the summer which is supposed to be one of the largest and best equipped in Europe. Could be a big draw for signing kids like that.

 

As for Leeds- Ken Bates is shrewd. He'll buy the club back for next to nothing having shed the high earners and debt and they'll be ok.

[Dave]

I can't see how it's fair to let them do it this season. They should be docked them at the start of next year, surely? Otherwise there is no disadvantage whatsoever.

 

The administrators were appointed during this season thought. No disadvantage? I am sure being in administration is  a dream

 

I'm on about the points deduction. They are relegated already.

[Slugsy]

Clever pre-pack by Bates - effectively the new owner now.

[brummie]

We were linked to that Rose fella before.

 

The weekend papers said he was coming to Everton

 

We're moving into a brand new training complex/academy in the summer which is supposed to be one of the largest and best equipped in Europe. Could be a big draw for signing kids like that.

 

As for Leeds- Ken Bates is shrewd. He'll buy the club back for next to nothing having shed the high earners and debt and they'll be ok.

 

We're opening ours tomorrow. 13 million pounds worth. The walls are made of solid GOLD, errm, probably. But it will still have that shit new badge outside it.

 

I agree on Leeds, this is the only way they are ever going to survive.

[Thespence]

I'm on about the points deduction. They are relegated already.

 

They were not. They could still of got out it with Hull losing & Healy bangin in 9. There is no right way of doing this because I am sure Rotherham waited until the following season to go into administration, they would have went down if they had of acted sooner.

[Belfast Boy]

How can it be fair for any business, not just football clubs, to be able to go into administration, wipe out most of their debt leaving creditors with nothing, and then immediately the same owners buy it back again?

[midds]

As 'wrong' as it is, EVERY other club would have done the same had they been in the same position. I agree that it doesn't seem fair but the loophole in the rules and regulations need to be criticised - not LUFC. 

[NUFC06]

And when you remember that 6 years ago they were playing in the semi-final of the Champions league ???

I feel sad for them

[Dr Spectrum]

As for Leeds- Ken Bates is shrewd. He'll buy the club back for next to nothing having shed the high earners and debt and they'll be ok.

 

Is it just me or is this re-sale idea dodgy as fook? Is it legal?

[Cronky]

As for Leeds- Ken Bates is shrewd. He'll buy the club back for next to nothing having shed the high earners and debt and they'll be ok.

 

Is it just me or is this re-sale idea dodgy as fook? Is it legal?

 

Well it all depends on whether the creditors accept it or not. If they think there's no other way of getting any of their money back, they'll accept it.

 

But there seems to be a strong element of a stitch up here.