Problems mount up for Leeds By Sports Desk Comment | Read Comments (3) Ken Bates may have won the battle to own Leeds United but his problems are far from over. HM Revenue and Customs may go ahead with their High Court case on 3 September challenging the way the administration was handled and former manager Kevin Blackwell has issued a libel action against Bates along with the Sun and journalist Mark Irwin. Blackwell is asking for £100,000 in damages for a story in which Bates alleged among other things that Blackwell had lost control of the dressing room and that his incompetence would have led to Leeds being relegated in December. advertisement The former Leeds manager, now in charge at Luton, claims the story seriously injured his reputation and that he has suffered considerable upset and embarrassment. Leeds' chief executive Shaun Harvey has revealed a further problem for the new company. Even when manager Dennis Wise is given permission to start signing players - he only has 17 in his squad at the moment - his hands will be partly tied throughout next season. Harvey said: "We will have to operate inside a budget for players' wages which will be agreed with the League based on our turnover and profitability. But this will not limit the number of players Dennis can sign." It does however underline the need to sell some of the experienced players who are on higher salaries and could see players like Eddie Lewis added to the exit list. Meanwhile Leeds are going ahead with their pre-season programme, starting at York tomorrow night and a trip to Germany next week. And.... The story runs and runs...... LONDON (Reuters) - A bid by Leeds United's new owners to obtain the Football Share needed to play in the third division next season has been turned down, the Football League said on Thursday. The debt-laden club was bought by a group led by chairman Ken Bates on Wednesday after being put up for sale by administrators KPMG. The new owners need to have the Leeds share transferred to them in order to start the new season. "The Board was unable to consent to this request this morning," the League said in a statement on its Web site www.football-league.co.uk. "Instead it has requested, from the administrators, certain required documentation and assurances regarding the sale of the club. The Board also requires certainty on the current legal proceedings surrounding the administration." The League, which governs the three divisions outside the Premier League, discussed Leeds at a board meeting on Thursday which it had expected KPMG to attend. "However, the League was informed late yesterday afternoon that they would not be attending, with no explanation provided," it said. "Additionally, the Board expressed concern at the handling of the whole process by the administrators and the Chairman was instructed to obtain legal advice in that regard." Aware of the impact of its reservations about the sale of the Yorkshire club, the League said: "Clearly any further delays in this process will be frustrating for Leeds supporters. "However, like the club's fans, the Board recognises the pressing need for certainty regarding the future of League football in Leeds." Should the matter not be sorted out quickly, the League added there was nothing in its regulations to prevent a club beginning a new season whilst in administration. A major force in English football in the late 1960s and 1970s, Leeds' fortunes have plummeted since being English champions in 1992 and reaching the Champions League semi-final in 2001. Relegated twice since then, they have debts of around 35 million pounds.
There is only one way Leeds can go and that is down the pan, they still have to run a Football club, so that includes paying players wages and staff their wages, you also have to take into account suppliers from the water company to the vendors of food and beverages, Police control, the list is endless. How much money does Bates have ?, it is not an endless piece of string. If I had a company who where asked to supply Leeds I would refuse any business, anyone who does has to be a fool
You can trace Leeds downfall to where it started going wrong for them. Their high was winning the Premiership in 1992. The begining of the end was... Losing 2-1 to a crap middling 1st Division Watford side in the CC Cup, November 1992. All downhill from there. Well done boys, you can be proud :]]
Can anyone tell me what happens if Leeds don't get this 'Golden Ticket?' Are they thrown out of the football league or do they still compete in League 1 (?) next year?
The `Sad Story` of Leeds Goes On C/P from Guardian Sport We may need some imput from Paddy and UEA: Bates's Leeds takeover may have breached insolvency law David Conn Wednesday July 18, 2007 The Guardian Ken Bates and his solicitor, Mark Taylor, may have breached insolvency law by acting as directors of Leeds United Football Club Limited, the new company formed to buy the club out of administration, according to HM Revenue and Customs. The Guardian has learned that one of the grounds for HMRC's challenge to the Company Voluntary Arrangement which originally approved the sale by the administrators, KPMG, to the new company, was that Bates and Taylor did not have permission from a court to be directors. HMRC believed permission is required because both men were previously directors of a different company, also called Leeds United Football Club Limited, which went into liquidation in June 2006. According to s216 of the Insolvency Act 1986, anybody who has been a director of a company which has gone into liquidation must obtain the court's permission if he wants to be a director of a new company with a similar name within five years. Trading without obtaining that permission is a criminal offence and anyone prosecuted and found guilty of it is, according to the act, liable to a fine or imprisonment. KPMG has said it believes an application has been made to the court on behalf of Bates and Taylor but the Insolvency Service, which would be invited to respond to any application, said yesterday it had no notice of one, although there could be a delay in being informed by a court. The question of whether s216 has been satisfied arises from the original company, Leeds United Football Club Limited, of which Bates and Taylor were directors. It changed its name, to Romans Heavies Limited, on December 2 2005, then on June 6 2006 went into liquidation. As Bates and Taylor had both been directors of the company during the 12 months preceding the liquidation, s216 appears to apply, requiring the court's permission for them to be directors of any company with a similar name within five years. HMRC is understood to have argued in its legal challenge to the Leeds United CVA that Taylor and Bates were in breach of s216 because the court's permission had not been granted. Neither Taylor nor Bates responded to questions about the alleged breach, so it is not known whether they have omitted to make an application or consider that it is not necessary for them to do so.
Well, Paddy's probably a better expert on it than I am but it does seem promising that he could be screwed. I have to say, as much as I hate Master Bates I do occationally like his sense of humour. Naming the company 'Romans Heavies LTD' :]] The only thing about all this is it affects them personally, not the takeover of the club as far as I know. Though I guess it could draw aspertions on the role of the administrator if they didn't even notice that potential buyers didn't satisfy 21 year old insolvency law.
They will not be able to play any games , even friendlies . Will be kicked out of the football league , the only hope for survival would be the conference
I still go back to my original question that the timing of the admistration was pre planned and that they had been trading insolvently for a long time which is against the law- ie not being able to meet their commitments as they fall due, for a very long time. That puts the onus on the directors as to why they did not call for the adminstrators much earlier than they did thus increasing debts. The directors are responsable for the actions of the club - I hope the Inland Revenue are right - Faith would be even more in the know as she is qualified and would have studied this in the course of her exams. I am but a lowly accountant to match my lowly forum user rating.
I have no rational explanation but, I kind of feel sorry for Leeds! Not Bates god no, but the real prospect of them being wiped of the football map is a bit sad I think. the best analogy I can think of now is the wizard of without the wicked witch. Not quite the same! Its the one universal in the game, we hate Luton, Man U hate City, Everton hate Liverpool. WE ALL HATE LEEDS...
have they got the golden share yet or is that still in the balance? would be a shame to see leeds wiped out of the football league bates deserves everything he gets but would be a shame for leeds
