Times Online - Newspaper Edition
Leeds board preparing to accept inevitable
By George Caulkin
LEEDS UNITED’S desperation to avoid the break-up of their first-team squad — a move that Trevor Birch, the embattled chief executive, insists would be tantamount to accepting relegation as a fait accompli — is causing the board of directors to resign themselves to the prospect of entering administration. Officials at Elland Road are now apparently coming to the conclusion that such a draconian decision may best safeguard the club’s future.
With little immediate sign of putative rescue packages from Sheikh Abdul Rahman bin Mubarak al-Khalifa or Allan Leighton, the former Leeds vice-chairman, Birch must raise £5 million — the cost of running the business until the end of the season — by Monday, when creditors will either expect to see hard evidence of a workable financial plan or carry out their threat to hand the club over to the administrators.
While that would be harrowing, Birch has long been of the opinion that selling players should be the final resort. Yesterday, a joint bid of £5 million from Tottenham Hotspur for Paul Robinson, the England goalkeeper, and James Milner, was rejected, as was an approach from Siena, the Serie A club, for Ian Harte.
Birch has intimated that £10 million would secure the signatures of Robinson and Milner, but that sum is so far out of Tottenham’s reach — they may return with a £6 million offer — that it may as well signify a straight refusal. At the same time, Leeds reiterated that Alan Smith — regarded as the heartbeat of the club by supporters — is not for sale.
After the Leeds players’ meeting on Tuesday, when the squad accepted, in principle, a wage deferral, but only after every other method of raising revenue had been explored, including selling players, it had been assumed that Smith’s departure, probably to Newcastle United, could not be avoided. The publicity surrounding that meeting, and the subsequent criticism from fans, has not eased an already febrile atmosphere.
Newcastle, who value Smith at £3 million and are not blessed with unlimited resources, have been reluctant to declare their hand, but Freddy Shepherd, the chairman, will try to tempt Leeds into selling their England striker by offering to loan him back to the club until the end of the season, safe in the knowledge that Craig Bellamy is only a week away from returning to full fitness.
Birch’s point of view is straightforward; selling Smith — not to mention Robinson — would be virtually to invite relegation. That would cost Leeds, at present bottom of the Barclaycard Premiership, as much as £20 million and make the club far less attractive to potential investors. If administration were sought next season, Football League regulations would cost them an automatic ten-point penalty.
At a meeting of Premiership chairmen at the end of this month, a nine-point deduction for teams opening insolvency proceedings is set to be agreed, but it will not be implemented until the summer. If Leeds were afforded protection from their creditors — they owe £82 million — it is understood that several suitors would be interested in buying the club outright and they could emerge in a stronger commercial position .
Ongoing attempts to reduce costs at Leeds have met a mixed response. Roque Júnior, the Brazil defender, has agreed to terminate his loan from AC Milan and is likely to join SV Hamburg, but similar requests have been turned down by Zoumana Camara and Didier Domi. Middlesbrough are in negotiations to sign Danny Mills on a permanent basis but do not anticipate reaching a deal soon. Payments to former players may also be blocked.
Lamine Sakho and Salomon Olembe, two temporary signings from Marseilles whom Eddie Gray, the Leeds caretaker manager, had hoped to keep, have decided to leave the club. “I have lined up deals for both players and they will be moving at the end of the transfer window,” Willie Mackay, the players’ agent, said. “Although they are both in Tunisia for the African Nations Cup, I don’t see a problem with either deal.”
In the light of anger from supporters, members of the Leeds squad have distanced themselves from criticism over their apparent reluctance to accept a 35 per cent deferral in their wages. “We wish to make it clear that we are fully behind the club and are working with Trevor Birch and the Professional Footballers’ Association in the hope of solving the problems,” a statement read. “Some of the reports in the newspapers are wrong.
We are together as a team and no decision has yet been made one way or the other on whether to defer a percentage of our wages. We have said that we will be prepared to support the club, should it be required.”
Leeds board preparing to accept inevitable
By George Caulkin
LEEDS UNITED’S desperation to avoid the break-up of their first-team squad — a move that Trevor Birch, the embattled chief executive, insists would be tantamount to accepting relegation as a fait accompli — is causing the board of directors to resign themselves to the prospect of entering administration. Officials at Elland Road are now apparently coming to the conclusion that such a draconian decision may best safeguard the club’s future.
With little immediate sign of putative rescue packages from Sheikh Abdul Rahman bin Mubarak al-Khalifa or Allan Leighton, the former Leeds vice-chairman, Birch must raise £5 million — the cost of running the business until the end of the season — by Monday, when creditors will either expect to see hard evidence of a workable financial plan or carry out their threat to hand the club over to the administrators.
While that would be harrowing, Birch has long been of the opinion that selling players should be the final resort. Yesterday, a joint bid of £5 million from Tottenham Hotspur for Paul Robinson, the England goalkeeper, and James Milner, was rejected, as was an approach from Siena, the Serie A club, for Ian Harte.
Birch has intimated that £10 million would secure the signatures of Robinson and Milner, but that sum is so far out of Tottenham’s reach — they may return with a £6 million offer — that it may as well signify a straight refusal. At the same time, Leeds reiterated that Alan Smith — regarded as the heartbeat of the club by supporters — is not for sale.
After the Leeds players’ meeting on Tuesday, when the squad accepted, in principle, a wage deferral, but only after every other method of raising revenue had been explored, including selling players, it had been assumed that Smith’s departure, probably to Newcastle United, could not be avoided. The publicity surrounding that meeting, and the subsequent criticism from fans, has not eased an already febrile atmosphere.
Newcastle, who value Smith at £3 million and are not blessed with unlimited resources, have been reluctant to declare their hand, but Freddy Shepherd, the chairman, will try to tempt Leeds into selling their England striker by offering to loan him back to the club until the end of the season, safe in the knowledge that Craig Bellamy is only a week away from returning to full fitness.
Birch’s point of view is straightforward; selling Smith — not to mention Robinson — would be virtually to invite relegation. That would cost Leeds, at present bottom of the Barclaycard Premiership, as much as £20 million and make the club far less attractive to potential investors. If administration were sought next season, Football League regulations would cost them an automatic ten-point penalty.
At a meeting of Premiership chairmen at the end of this month, a nine-point deduction for teams opening insolvency proceedings is set to be agreed, but it will not be implemented until the summer. If Leeds were afforded protection from their creditors — they owe £82 million — it is understood that several suitors would be interested in buying the club outright and they could emerge in a stronger commercial position .
Ongoing attempts to reduce costs at Leeds have met a mixed response. Roque Júnior, the Brazil defender, has agreed to terminate his loan from AC Milan and is likely to join SV Hamburg, but similar requests have been turned down by Zoumana Camara and Didier Domi. Middlesbrough are in negotiations to sign Danny Mills on a permanent basis but do not anticipate reaching a deal soon. Payments to former players may also be blocked.
Lamine Sakho and Salomon Olembe, two temporary signings from Marseilles whom Eddie Gray, the Leeds caretaker manager, had hoped to keep, have decided to leave the club. “I have lined up deals for both players and they will be moving at the end of the transfer window,” Willie Mackay, the players’ agent, said. “Although they are both in Tunisia for the African Nations Cup, I don’t see a problem with either deal.”
In the light of anger from supporters, members of the Leeds squad have distanced themselves from criticism over their apparent reluctance to accept a 35 per cent deferral in their wages. “We wish to make it clear that we are fully behind the club and are working with Trevor Birch and the Professional Footballers’ Association in the hope of solving the problems,” a statement read. “Some of the reports in the newspapers are wrong.
We are together as a team and no decision has yet been made one way or the other on whether to defer a percentage of our wages. We have said that we will be prepared to support the club, should it be required.”