Sporting Life - Football
BIRCH COULD HOLD KEY TO LEEDS FUTURE
By Ian Parkes, PA Sport
Leeds appear poised to bide their time should they choose to go into administration due to acting-chairman Trevor Birch's apparently healthy relationship with the club's creditors.
The future of the club currently hangs in the balance with just five days' remaining to the end of a 'standstill agreement' with the creditors - who are owed a combined £82million.
Birch is understood to be working frantically behind the Elland Road scenes in the hope of attracting a buyer for the debt-laden club, or enough investment to see Leeds through to the end of the season.
It is believed a figure between £5-8million is required to keep Leeds going for the final 16 weeks of the campaign, which may yet result in at least one player being sold before the closure of this month's transfer window.
If no funds are forthcoming, then administration - although the last resort at this stage - would appear to be the only option, however, the creditors would still have a significant role to play.
The bondholders, American companies MetLife and Teachers, along with British firm M&G, as well as player-leasing agents Registered European Football Finance Ltd, would not want to see Leeds in administration.
But Leeds are seemingly under no pressure from the creditors, and instead it is the prospect of the Premier League imposing a points penalty for any team falling into the hands of administrators which could force their hand.
It is the Premier League board, comprising chairman David Richards, chief executive Richard Scudamore and secretary Michael Foster, and not the other 19 league chairmen who would decide Leeds' fate, with a meeting scheduled for the end of the month.
Professional Footballers' Association chief executive Mick McGuire, who yesterday met with the Leeds players to discuss what administration means, explained there is a real fear at Elland Road the club will be docked points.
"There's a concern that the possible regulation of a points deduction for a club in administration comes in before the end of the season, which it may do," said McGuire.
"That could have a bearing on the timing of Leeds' decision if they choose to go into administration, and I'm not saying they will.
"Normally clubs do so to protect themselves from creditor pressure. I don't think Leeds have got that because I think their chief executive (Birch) has a relationship with the creditors.
"But the concern about a points deduction is just another piece in the jigsaw."
A Premier League spokesman confirmed the board have wide-ranging powers, yet much would appear to depend on what defence for going into, and attack for getting out of administration, the club offer.
"We cannot pre-judge what state Leeds are in until they present their case," said the spokesman.
"We don't know, if they go into administration, whether they would have a suitable exit plan to come out of it. They would need to provide us with some comfort on what they intend to do.
"All we would do is look at the situation and then make a decision based on the information we have."
At present, the Nationwide League imposition of a 10-point penalty for clubs going into administration does not come into force until May 10.
There is no guarantee at this stage if Leeds go into administration as a Premier League club, they would avoid being penalised by the Nationwide League anyway should they be relegated at the end of the season.
A Nationwide League spokesman said: "This is obviously a terrible situation for Leeds and their supporters.
"At present our rule states any teams going into administration after May 10 will be docked 10 points. It is difficult to say whether we could act retrospectively and apply it to a Premier League club coming down.
"We will probably wait to see what the Premier League decide, then look to see if there is anything we need to do to protect the integrity of our competition."
There remains hope Leeds will still avoid such an unwanted fate, although whatever happens, the PFA will remain integral to any proceedings to ensure the players are not kept in the dark.
"We are looking at going forward now, and we will see how it looks over the next week," added McGuire.
"The players are fully aware of the position Leeds are in and they are keen for the PFA to remain involved so that they are kept in the loop.
"Even if none of the players contact me in the next week then we will be going in to see them, while I have also spoken to Trevor Birch and I will be speaking to him regularly.
"The players are 100% committed to keeping the club up, and history has proved that once players have realised the extent of the implications of going into administration they have responded very positively.
"We are all hoping now that yesterday's meeting will galvanise the players for the important run-in for the rest of the season."
BIRCH COULD HOLD KEY TO LEEDS FUTURE
By Ian Parkes, PA Sport
Leeds appear poised to bide their time should they choose to go into administration due to acting-chairman Trevor Birch's apparently healthy relationship with the club's creditors.
The future of the club currently hangs in the balance with just five days' remaining to the end of a 'standstill agreement' with the creditors - who are owed a combined £82million.
Birch is understood to be working frantically behind the Elland Road scenes in the hope of attracting a buyer for the debt-laden club, or enough investment to see Leeds through to the end of the season.
It is believed a figure between £5-8million is required to keep Leeds going for the final 16 weeks of the campaign, which may yet result in at least one player being sold before the closure of this month's transfer window.
If no funds are forthcoming, then administration - although the last resort at this stage - would appear to be the only option, however, the creditors would still have a significant role to play.
The bondholders, American companies MetLife and Teachers, along with British firm M&G, as well as player-leasing agents Registered European Football Finance Ltd, would not want to see Leeds in administration.
But Leeds are seemingly under no pressure from the creditors, and instead it is the prospect of the Premier League imposing a points penalty for any team falling into the hands of administrators which could force their hand.
It is the Premier League board, comprising chairman David Richards, chief executive Richard Scudamore and secretary Michael Foster, and not the other 19 league chairmen who would decide Leeds' fate, with a meeting scheduled for the end of the month.
Professional Footballers' Association chief executive Mick McGuire, who yesterday met with the Leeds players to discuss what administration means, explained there is a real fear at Elland Road the club will be docked points.
"There's a concern that the possible regulation of a points deduction for a club in administration comes in before the end of the season, which it may do," said McGuire.
"That could have a bearing on the timing of Leeds' decision if they choose to go into administration, and I'm not saying they will.
"Normally clubs do so to protect themselves from creditor pressure. I don't think Leeds have got that because I think their chief executive (Birch) has a relationship with the creditors.
"But the concern about a points deduction is just another piece in the jigsaw."
A Premier League spokesman confirmed the board have wide-ranging powers, yet much would appear to depend on what defence for going into, and attack for getting out of administration, the club offer.
"We cannot pre-judge what state Leeds are in until they present their case," said the spokesman.
"We don't know, if they go into administration, whether they would have a suitable exit plan to come out of it. They would need to provide us with some comfort on what they intend to do.
"All we would do is look at the situation and then make a decision based on the information we have."
At present, the Nationwide League imposition of a 10-point penalty for clubs going into administration does not come into force until May 10.
There is no guarantee at this stage if Leeds go into administration as a Premier League club, they would avoid being penalised by the Nationwide League anyway should they be relegated at the end of the season.
A Nationwide League spokesman said: "This is obviously a terrible situation for Leeds and their supporters.
"At present our rule states any teams going into administration after May 10 will be docked 10 points. It is difficult to say whether we could act retrospectively and apply it to a Premier League club coming down.
"We will probably wait to see what the Premier League decide, then look to see if there is anything we need to do to protect the integrity of our competition."
There remains hope Leeds will still avoid such an unwanted fate, although whatever happens, the PFA will remain integral to any proceedings to ensure the players are not kept in the dark.
"We are looking at going forward now, and we will see how it looks over the next week," added McGuire.
"The players are fully aware of the position Leeds are in and they are keen for the PFA to remain involved so that they are kept in the loop.
"Even if none of the players contact me in the next week then we will be going in to see them, while I have also spoken to Trevor Birch and I will be speaking to him regularly.
"The players are 100% committed to keeping the club up, and history has proved that once players have realised the extent of the implications of going into administration they have responded very positively.
"We are all hoping now that yesterday's meeting will galvanise the players for the important run-in for the rest of the season."