Yorkshire Post 7/7/07
Wise expects clearance to increase Leeds squad
By Ian Appleyard
LEEDS United manager Dennis Wise was last night uncertain as to who might be his boss in the coming season after administrators put the club up for sale.
But, assuming the move meets with Football League approval, he could at least find himself able to sign three new players before the start of the campaign thanks to the probable lifting of the transfer embargo.
Under existing League rules, clubs are allowed to stay in 'administration' for a maximum period of 18 months and are also allowed to sign new players if they have less than 20 professionals on the books.
After the lengthy list of departures this summer, Wise has only 17 full-time professionals, a number that would be reduced further if star striker David Healy is sold to Fulham.Worryingly for Wise, five of his 17 players are still teenagers, a situation which is far from ideal going into a first season at League One level.
Wise had boosted numbers ahead of tonight's first pre-season friendly against Shelbourne with the addition of trialists, including former Manchester United trainees Jamie Mullan and Floribert N'Galula, former Swindon midfielder Curtis Weston, and ex-Southend goalkeeper Danny Gay.
But he will still need to state a case for extra players before the opening game of the league campaign against Tranmere on August 11.
With just five weeks to go before the season kicks off, the options available to Wise are still extremely limited.
The only goalkeeper on the books at Elland Road is teenager Jonathan Lund.
There are only two defenders signed up – Frazer Richardson and teenager Fabian Delph – and nine midfielders; Jonathan Douglas, Shaun Derry, Ian Westlake, Eddie Lewis, Gylfi Einarsson, Sebastian Carole, and youngsters Jonathan Howson, Robert Bayly and Danny Rose.
In attack, Leeds have a relatively impressive selection of five strikers; Richard Cresswell, Jermaine Beckford, Robbie Blake, Tresor Kandol and Healy.
The biggest concern for Wise remains the club's ability to trade with adminstrators needing to have enough money coming in to pay wages and bills until the ownership dispute is resolved.
Ultimately, it will be down to either the administrators or the possible new owners whether Wise is given permission to add players to the payroll. The League will only block signings when 20 players are on the books again.
The Football League's board is due to meet next week when it may have to decide whether Leeds play on under new owners without going through a CVA process.
Yorkshire Post 6/7/07
Administrators put Leeds up for sale
The future of Leeds United hung in the balance on Friday night after the administrators put the debt-ridden club up for sale.
KPMG said it had made the decision because of a legal challenge by HM Revenue and Customs over the £7.7million it is owed by the Yorkshire club and is challenging club chairman Ken Bates' re-sale.
A spokesman for the administrators said: "We are putting the club up for sale and offers must be in by 5pm on Monday and we are interested in talking to other parties. This is because of the uncertainty that surrounds the club due to the legal challenge by HM Revenue and Customs.
"The High Court has postponed a decision on HM Revenue and Customs application to challenge the Company Voluntary Agreement, which has been set by most of the creditors, until September - leaving the future of the club in doubt.
HM Revenue and Customs is unhappy at Bates' plan to pull the club out of administration by paying creditors just 8p in every £1.
Bates has already warned that defending the court action could cost the club, which has debts of £35 million, its future.
KPMG said it had set a deadline of 5pm next Monday for offers for the club.
Those who have previously declared an interest in buying the club include Duncan Revie, son of former Leeds manager Don, and property entrepreneur Simon Morris.
Earlier this week, businessman Simon Franks said he was ready to buy Leeds United, through his Redbus investment vehicle.
It emerged on Friday that Leeds may not start the season in August but league bosses are set to discuss the situation next week, despite the court case.
Sporting Life 6/7/07
LEEDS PUT UP FOR SALE
By Rod Minchin, PA
The future of Leeds United hung in the balance on Friday night after the administrators put the debt-ridden club up for sale.
KPMG said it had made the decision because of a legal challenge by HM Revenue and Customs over the £7.7million it is owed by the Yorkshire club and is challenging club chairman Ken Bates' re-sale.
The High Court has postponed a decision on HM Revenue and Customs application to challenge the Company Voluntary Agreement, which has been set by most of the creditors, until September - leaving the future of the club in doubt.
HM Revenue and Customs is unhappy at Bates' plan to pull the club out of administration by paying creditors just 8p in every £1.
Bates has already warned that defending the court action could cost the club, which has debts of £35 million, its future.
KPMG said it had set a deadline of 5pm next Monday for offers for the club.
A spokesman for the administrators said: "We are putting the club up for sale and offers must be in by 5pm on Monday and we are interested in talking to other parties.
"This is because of the uncertainty that surrounds the club due to the legal challenge by HM Revenue and Customs."
Those who have previously declared an interest in buying the club include Duncan Revie, son of former Leeds manager Don, and property entrepreneur Simon Morris.
Earlier this week, businessman Simon Franks said he was ready to buy Leeds United, through his Redbus investment vehicle.
It emerged today that Leeds may not start the season in August but league bosses are set to discuss the situation next week, despite the court case.
KPMG's barrister, Louis Doyle, told the High Court in Leeds: "The cessation of these proceedings will actually stop Leeds playing at the start of the season.
"It remains to be seen what approach the league may take to that."
The legal case has now been adjourned until September 3, while Leeds are due to play their first game of next season away to Tranmere on Saturday, August 11.
A spokesman for Leeds United said that because the club was in administration he could not comment on KPMG's decision.
Yorkshire Post 6/7/07
Leeds Utd: Season start now in balance
Leeds United's future remains dogged by uncertainty after a legal battle over the club's ownership was put off until September.
The Football League's board will discuss the club's situation next week and are likely to allow Leeds to start the new season despite the looming court case.But there are concerns that Ken Bates' threat to cease funding the club due to a legal challenge by Her Majesty's Revenue and Customs (HMRC) could have severe implications.Leeds are in the hands of administrators KPMG who are legally obliged not to run up any more debt and if no funding is coming in to begin to wind the club up.HMRC, who are owed £7.7million in unpaid tax and VAT, are challenging the resale of Leeds to Bates and Leeds United Football Club Ltd by the administrators and a five-day hearing will take place from September 3.HMRC launched their challenge on Tuesday against the Company Voluntary Arrangement (CVA) proposed by Leeds United Football Club Ltd and accepted by most of the club's creditors.Bates had offered to pay them a total of 8p in the pound, but that was rejected.KPMG's barrister Louis Doyle told the court that HMRC's appeal against the CVA would threaten to prevent United from starting the season.Doyle said: "The cessation of these proceedings will actually stop Leeds playing at the start of the season."It remains to be seen what approach the league may take to that."One option would be for the administrators to abandon the deal proposed by Bates and Leeds United Football Club Ltd and seek different buyers for the club.On Tuesday Bates issued a stark warning telling Yorkshire Radio: "If there is a legal challenge it could take two or three months to get to court and be decided. In the meantime, who is going to pay to run the club? So far it's been funded by the 'new Leeds' but if there is a challenge the 'new Leeds' won't do it because it's a risk. The implications are that the club would close down."A spokesman for the Football League said this afternoon it would not comment on the situation.After the hearing, former Leeds chairman Gerald Krasner raised the possibility that two interested buyers would join forces should KPMG fail the CVA and open up the sale of the club to the highest bidder."It is possible that two of the figures will get together and put in one gigantic bid," he said."It is a possibilily that has been discussed. Even if that doesn't happen, the funds that are available are much more substantial than we've heard in the CVA... tens of millions."I believe that the ownership question will be sorted out by the start of the season."My personal belief, and it's well-founded, is that this will never come to that hearing in September and that all matters will be sorted well before then."That date has been put there as a backstop to give breathing space for the parties going forward and come up with a very pragmatic solution."They (KMPG) should use the buyback clause in the agreement to take control of the club next week for £1."They should give all interested figures, and I include Mr Bates here, the chance to make a final sealed bid within say five or six days."The administrators would then look at the best bid, inform the (Inland] Revenue, who have an interest and they would go to court with a view to accepting that bid and having it sanctioned by the court."They will, of course, have to bring the Football League onside at that stage."
Sporting Life 6/7/07
BATES READY TO DEFEND BUY-BACK DEAL
By Mark Walker, PA Sport
Leeds chairman Ken Bates has taken the fight to the Inland Revenue following their legal challenge against his controversial buy-back deal.
The Inland Revenue have appealed to the High Court in a bid to block Bates' plan to regain power at Elland Road, after placing the club in administration in early May with debts of £35million.
A High Court hearing in Leeds on Friday morning will lay out a timetable for the Inland Revenue's appeal.
Bates was still hoping to thrash out a deal, but following meetings with administrators KPMG and the Football League has instructed his lawyers to go on the offensive.
A club statement read: "In view of the HMRC appeal against the CVA, the club has instructed its lawyers and asked the administrators to analyse all parts of the claim with particular reference to the inclusion of protective assessments.
"One of the protective assessments relates to the club reclaiming VAT charged by football agents for services provided, which was included in the HMRC's £7.7m claim."
Bates won a vote by the slimmest of margins to pay off the club's debts of £35million at 1p in the pound at a creditors' meeting on June 4.
Bates later increased his Company Voluntary Agreement (CVA) offer to 8p in the pound in a last-ditch attempt to appease furious Inland Revenue officials, who were set to receive just £77,000 under the initial terms.
But an improved settlement of £600,000 was not enough to stop the Inland Revenue lodging an appeal in the High Court.
One of several options now available to administrators KPMG would be, with the High Court's approval, to scrap Bates' CVA proposal and buy back the club for £1 before selling it on to the highest bidder.
It is understood the accepted bid could be sanctioned by the High Court and the Football League without the need for a creditors' vote.
That has alerted two rival parties who have stepped up their bids to take control of Leeds as Bates' buy-back deal hangs in the balance.
Redbus Group and local property developer Simon Morris have contacted administrators KPMG to reiterate their interest.
Redbus chief executive Simon Franks told PA Sport: "We have reiterated to administrators KPMG our desire to take control of Leeds.
"We have also informed them of our willingness to support the club in the short term should they require it."
Bates has insisted throughout the process that a legal challenge to his buy-back deal would force the club into liquidation because he would stop paying the running costs.
But Franks added: "I don't think there's a chance of Leeds going into liquidation and ceasing to exist.
"We are ready to step in immediately to cover the short-term costs if we get the go-ahead.
"It's still a very complicated process and it may turn out that bidders don't get the chance to participate.
"But from our point of view if there's an opportunity for a group not aligned to Ken Bates, we are ready to step in.
"The administrators confirmed at the creditors' meeting five parties had provided proof of funds - and we're one of them, and that says enough about our financial commitment."
Franks added on BBC Radio Five Live: "If that [Bates' legal action] fails then I think we have a very good chance of being the best option for the club.
"The risk is that this drags on, and there is no improvement.
"We hope we are going to get control - but I would be a liar if I said I thought I definitely would.
"I am not a lifelong Leeds fan who has dreamed of owning Leeds all my life. We are here to provide expertise to turn the club around.
"I very much feel this could be great for Leeds, for the fans - and for my company."
Morris confirmed: "We have lodged our interest again and remain a determined bidder for Leeds United at the same level as before.
"We remain committed to getting our club back to the top of the football tree where it belongs."
Wise expects clearance to increase Leeds squad
By Ian Appleyard
LEEDS United manager Dennis Wise was last night uncertain as to who might be his boss in the coming season after administrators put the club up for sale.
But, assuming the move meets with Football League approval, he could at least find himself able to sign three new players before the start of the campaign thanks to the probable lifting of the transfer embargo.
Under existing League rules, clubs are allowed to stay in 'administration' for a maximum period of 18 months and are also allowed to sign new players if they have less than 20 professionals on the books.
After the lengthy list of departures this summer, Wise has only 17 full-time professionals, a number that would be reduced further if star striker David Healy is sold to Fulham.Worryingly for Wise, five of his 17 players are still teenagers, a situation which is far from ideal going into a first season at League One level.
Wise had boosted numbers ahead of tonight's first pre-season friendly against Shelbourne with the addition of trialists, including former Manchester United trainees Jamie Mullan and Floribert N'Galula, former Swindon midfielder Curtis Weston, and ex-Southend goalkeeper Danny Gay.
But he will still need to state a case for extra players before the opening game of the league campaign against Tranmere on August 11.
With just five weeks to go before the season kicks off, the options available to Wise are still extremely limited.
The only goalkeeper on the books at Elland Road is teenager Jonathan Lund.
There are only two defenders signed up – Frazer Richardson and teenager Fabian Delph – and nine midfielders; Jonathan Douglas, Shaun Derry, Ian Westlake, Eddie Lewis, Gylfi Einarsson, Sebastian Carole, and youngsters Jonathan Howson, Robert Bayly and Danny Rose.
In attack, Leeds have a relatively impressive selection of five strikers; Richard Cresswell, Jermaine Beckford, Robbie Blake, Tresor Kandol and Healy.
The biggest concern for Wise remains the club's ability to trade with adminstrators needing to have enough money coming in to pay wages and bills until the ownership dispute is resolved.
Ultimately, it will be down to either the administrators or the possible new owners whether Wise is given permission to add players to the payroll. The League will only block signings when 20 players are on the books again.
The Football League's board is due to meet next week when it may have to decide whether Leeds play on under new owners without going through a CVA process.
Yorkshire Post 6/7/07
Administrators put Leeds up for sale
The future of Leeds United hung in the balance on Friday night after the administrators put the debt-ridden club up for sale.
KPMG said it had made the decision because of a legal challenge by HM Revenue and Customs over the £7.7million it is owed by the Yorkshire club and is challenging club chairman Ken Bates' re-sale.
A spokesman for the administrators said: "We are putting the club up for sale and offers must be in by 5pm on Monday and we are interested in talking to other parties. This is because of the uncertainty that surrounds the club due to the legal challenge by HM Revenue and Customs.
"The High Court has postponed a decision on HM Revenue and Customs application to challenge the Company Voluntary Agreement, which has been set by most of the creditors, until September - leaving the future of the club in doubt.
HM Revenue and Customs is unhappy at Bates' plan to pull the club out of administration by paying creditors just 8p in every £1.
Bates has already warned that defending the court action could cost the club, which has debts of £35 million, its future.
KPMG said it had set a deadline of 5pm next Monday for offers for the club.
Those who have previously declared an interest in buying the club include Duncan Revie, son of former Leeds manager Don, and property entrepreneur Simon Morris.
Earlier this week, businessman Simon Franks said he was ready to buy Leeds United, through his Redbus investment vehicle.
It emerged on Friday that Leeds may not start the season in August but league bosses are set to discuss the situation next week, despite the court case.
Sporting Life 6/7/07
LEEDS PUT UP FOR SALE
By Rod Minchin, PA
The future of Leeds United hung in the balance on Friday night after the administrators put the debt-ridden club up for sale.
KPMG said it had made the decision because of a legal challenge by HM Revenue and Customs over the £7.7million it is owed by the Yorkshire club and is challenging club chairman Ken Bates' re-sale.
The High Court has postponed a decision on HM Revenue and Customs application to challenge the Company Voluntary Agreement, which has been set by most of the creditors, until September - leaving the future of the club in doubt.
HM Revenue and Customs is unhappy at Bates' plan to pull the club out of administration by paying creditors just 8p in every £1.
Bates has already warned that defending the court action could cost the club, which has debts of £35 million, its future.
KPMG said it had set a deadline of 5pm next Monday for offers for the club.
A spokesman for the administrators said: "We are putting the club up for sale and offers must be in by 5pm on Monday and we are interested in talking to other parties.
"This is because of the uncertainty that surrounds the club due to the legal challenge by HM Revenue and Customs."
Those who have previously declared an interest in buying the club include Duncan Revie, son of former Leeds manager Don, and property entrepreneur Simon Morris.
Earlier this week, businessman Simon Franks said he was ready to buy Leeds United, through his Redbus investment vehicle.
It emerged today that Leeds may not start the season in August but league bosses are set to discuss the situation next week, despite the court case.
KPMG's barrister, Louis Doyle, told the High Court in Leeds: "The cessation of these proceedings will actually stop Leeds playing at the start of the season.
"It remains to be seen what approach the league may take to that."
The legal case has now been adjourned until September 3, while Leeds are due to play their first game of next season away to Tranmere on Saturday, August 11.
A spokesman for Leeds United said that because the club was in administration he could not comment on KPMG's decision.
Yorkshire Post 6/7/07
Leeds Utd: Season start now in balance
Leeds United's future remains dogged by uncertainty after a legal battle over the club's ownership was put off until September.
The Football League's board will discuss the club's situation next week and are likely to allow Leeds to start the new season despite the looming court case.But there are concerns that Ken Bates' threat to cease funding the club due to a legal challenge by Her Majesty's Revenue and Customs (HMRC) could have severe implications.Leeds are in the hands of administrators KPMG who are legally obliged not to run up any more debt and if no funding is coming in to begin to wind the club up.HMRC, who are owed £7.7million in unpaid tax and VAT, are challenging the resale of Leeds to Bates and Leeds United Football Club Ltd by the administrators and a five-day hearing will take place from September 3.HMRC launched their challenge on Tuesday against the Company Voluntary Arrangement (CVA) proposed by Leeds United Football Club Ltd and accepted by most of the club's creditors.Bates had offered to pay them a total of 8p in the pound, but that was rejected.KPMG's barrister Louis Doyle told the court that HMRC's appeal against the CVA would threaten to prevent United from starting the season.Doyle said: "The cessation of these proceedings will actually stop Leeds playing at the start of the season."It remains to be seen what approach the league may take to that."One option would be for the administrators to abandon the deal proposed by Bates and Leeds United Football Club Ltd and seek different buyers for the club.On Tuesday Bates issued a stark warning telling Yorkshire Radio: "If there is a legal challenge it could take two or three months to get to court and be decided. In the meantime, who is going to pay to run the club? So far it's been funded by the 'new Leeds' but if there is a challenge the 'new Leeds' won't do it because it's a risk. The implications are that the club would close down."A spokesman for the Football League said this afternoon it would not comment on the situation.After the hearing, former Leeds chairman Gerald Krasner raised the possibility that two interested buyers would join forces should KPMG fail the CVA and open up the sale of the club to the highest bidder."It is possible that two of the figures will get together and put in one gigantic bid," he said."It is a possibilily that has been discussed. Even if that doesn't happen, the funds that are available are much more substantial than we've heard in the CVA... tens of millions."I believe that the ownership question will be sorted out by the start of the season."My personal belief, and it's well-founded, is that this will never come to that hearing in September and that all matters will be sorted well before then."That date has been put there as a backstop to give breathing space for the parties going forward and come up with a very pragmatic solution."They (KMPG) should use the buyback clause in the agreement to take control of the club next week for £1."They should give all interested figures, and I include Mr Bates here, the chance to make a final sealed bid within say five or six days."The administrators would then look at the best bid, inform the (Inland] Revenue, who have an interest and they would go to court with a view to accepting that bid and having it sanctioned by the court."They will, of course, have to bring the Football League onside at that stage."
Sporting Life 6/7/07
BATES READY TO DEFEND BUY-BACK DEAL
By Mark Walker, PA Sport
Leeds chairman Ken Bates has taken the fight to the Inland Revenue following their legal challenge against his controversial buy-back deal.
The Inland Revenue have appealed to the High Court in a bid to block Bates' plan to regain power at Elland Road, after placing the club in administration in early May with debts of £35million.
A High Court hearing in Leeds on Friday morning will lay out a timetable for the Inland Revenue's appeal.
Bates was still hoping to thrash out a deal, but following meetings with administrators KPMG and the Football League has instructed his lawyers to go on the offensive.
A club statement read: "In view of the HMRC appeal against the CVA, the club has instructed its lawyers and asked the administrators to analyse all parts of the claim with particular reference to the inclusion of protective assessments.
"One of the protective assessments relates to the club reclaiming VAT charged by football agents for services provided, which was included in the HMRC's £7.7m claim."
Bates won a vote by the slimmest of margins to pay off the club's debts of £35million at 1p in the pound at a creditors' meeting on June 4.
Bates later increased his Company Voluntary Agreement (CVA) offer to 8p in the pound in a last-ditch attempt to appease furious Inland Revenue officials, who were set to receive just £77,000 under the initial terms.
But an improved settlement of £600,000 was not enough to stop the Inland Revenue lodging an appeal in the High Court.
One of several options now available to administrators KPMG would be, with the High Court's approval, to scrap Bates' CVA proposal and buy back the club for £1 before selling it on to the highest bidder.
It is understood the accepted bid could be sanctioned by the High Court and the Football League without the need for a creditors' vote.
That has alerted two rival parties who have stepped up their bids to take control of Leeds as Bates' buy-back deal hangs in the balance.
Redbus Group and local property developer Simon Morris have contacted administrators KPMG to reiterate their interest.
Redbus chief executive Simon Franks told PA Sport: "We have reiterated to administrators KPMG our desire to take control of Leeds.
"We have also informed them of our willingness to support the club in the short term should they require it."
Bates has insisted throughout the process that a legal challenge to his buy-back deal would force the club into liquidation because he would stop paying the running costs.
But Franks added: "I don't think there's a chance of Leeds going into liquidation and ceasing to exist.
"We are ready to step in immediately to cover the short-term costs if we get the go-ahead.
"It's still a very complicated process and it may turn out that bidders don't get the chance to participate.
"But from our point of view if there's an opportunity for a group not aligned to Ken Bates, we are ready to step in.
"The administrators confirmed at the creditors' meeting five parties had provided proof of funds - and we're one of them, and that says enough about our financial commitment."
Franks added on BBC Radio Five Live: "If that [Bates' legal action] fails then I think we have a very good chance of being the best option for the club.
"The risk is that this drags on, and there is no improvement.
"We hope we are going to get control - but I would be a liar if I said I thought I definitely would.
"I am not a lifelong Leeds fan who has dreamed of owning Leeds all my life. We are here to provide expertise to turn the club around.
"I very much feel this could be great for Leeds, for the fans - and for my company."
Morris confirmed: "We have lodged our interest again and remain a determined bidder for Leeds United at the same level as before.
"We remain committed to getting our club back to the top of the football tree where it belongs."
