Times Online - Newspaper Edition
Players to defer wages to give Leeds lifeline
By Ashling O’Connor
LEEDS UNITED will this week meet the Professional Footballers’ Association (PFA) to discuss the deferral of players’ wages as the heavily indebted Barclaycard Premiership club struggles to stay in business.
The footballers’ union is prepared to accept the argument that wage deferrals are necessary to see the club to the end of the season but has not yet agreed a figure.
“We were hoping it wouldn’t get to this, but there doesn’t seem to be a white knight coming over the horizon,” Gordon Taylor, the PFA chief executive, said. “Players are prepared to help so long as they are not taken advantage of. They have commitments like anyone else. Above all, they want to keep the club together.”
Leeds are expected to ask their players to defer a third of their wages, which accounts for about £40 million of the £50 million staff costs. This would free up £12 million, which could be enough of a lifeline even without a potential new investor.
Negotiations with the PFA are key to Leeds being able to satisfy their creditors, who yesterday agreed to give the club’s board a further week to restructure their finances.
Trevor Birch, the Leeds chief executive, has the option of a further two-week extension to February 6 to offer evidence of new cash coming into the business.
On December 4, the holders of a £60 million bond agreed to allow £4.1 million usually kept in an escrow account to be used to keep the club running. This original “standstill agreement” expired yesterday.
Players to defer wages to give Leeds lifeline
By Ashling O’Connor
LEEDS UNITED will this week meet the Professional Footballers’ Association (PFA) to discuss the deferral of players’ wages as the heavily indebted Barclaycard Premiership club struggles to stay in business.
The footballers’ union is prepared to accept the argument that wage deferrals are necessary to see the club to the end of the season but has not yet agreed a figure.
“We were hoping it wouldn’t get to this, but there doesn’t seem to be a white knight coming over the horizon,” Gordon Taylor, the PFA chief executive, said. “Players are prepared to help so long as they are not taken advantage of. They have commitments like anyone else. Above all, they want to keep the club together.”
Leeds are expected to ask their players to defer a third of their wages, which accounts for about £40 million of the £50 million staff costs. This would free up £12 million, which could be enough of a lifeline even without a potential new investor.
Negotiations with the PFA are key to Leeds being able to satisfy their creditors, who yesterday agreed to give the club’s board a further week to restructure their finances.
Trevor Birch, the Leeds chief executive, has the option of a further two-week extension to February 6 to offer evidence of new cash coming into the business.
On December 4, the holders of a £60 million bond agreed to allow £4.1 million usually kept in an escrow account to be used to keep the club running. This original “standstill agreement” expired yesterday.
