Players' wage deferrals keep Leeds afloat

LEEDS chairman Trevor Birch yesterday demanded a united front from all within Elland Road after securing the club's future until the end of the season.

On the day the other Premier League chairmen announced a nine-point penalty for any club which falls into the hands of the administrators, with the rule coming into force from June 3, Birch has staved off such an imminent threat thanks to the players.

Just nine days ago, the senior members of the United squad rejected proposals for a 35% deferral with the Professional Footballers' Association's 30% request also snubbed following an apparently vociferous meeting at Leeds' Thorp Arch training complex.

But the players perhaps aware of a fans' backlash at Saturday's Elland Road match against Middlesbrough following accusations of 'greed' last week have now agreed to a 25% deferral, amounting to around £2.5m.

In conjunction with other measures implemented since last Tuesday by Birch, the £5m needed to see Leeds through to the end of the season has been raised.

Birch is now eager for the matter to be laid to rest for the closing few months of an arduous campaign, with the hope the club can ultimately secure their Premier League status Birch said: "The board understands that this position has been very difficult for the players, and this request was made as an absolute last resort.

"The players' actions demonstrate their commitment and understanding and give Leeds United a massive lift. "There are 16 games left for Leeds United to fight for survival in the Premier League.

"The board, employees, players and supporters should now pull together and do whatever they can to achieve this goal."

Birch is to speak with the creditors bondholders MetLife and Teachers in the United States and British firm M&G, along with player-leasing agents Registered European Football Finance Ltd in the hope of securing a further extension until the end of the season of the current standstill agreement.

Although there is a Yorkshire-based consortium looking to takeover the Whites with a £20 million bid on the table, there are no guarantees a deal will be agreed.

But on a day of positive news for Leeds fans, the consortium have proved their credentials after their credibility had been called into question.

Consortium representative Gerald Krasner said: "I am pleased to announce that earlier today our solicitors, Walker Morris, have informed Leeds United Football Club's advisers that we have an eight-figure sum in a solicitors' client's account to do this deal."

It is understood Birch still has reservations about the group, although Krasner has confirmed if they are successful in their bid the players will no longer be asked to defer their wages.

Despite the talks with the consortium, Birch has still had to make necessary cuts Former managers David O'Leary, Terry Venables and Peter Reid have all agreed to defer severance payments owed in the wake of their sackings in the past 20 months, totalling a little more than £1m.

A payment of £10,000 per week to former striker Robbie Fowler, owed as part of his £6million move to Manchester City a year ago, has apparently been put on hold while Birch ended the season-long loan contract of Roque Junior last week.

Birch received a timely windfall of £1.5m from Manchester United yesterday as final payment for Rio Ferdinand's £29.1m transfer in July 2002.

With the players now dipping into their pocket the club is now safe. PFA chief executive Gordon Taylor, who helped broker the deal along with Leeds' finance director Neil Robson, is delighted the matter is now at an end.

"They [the players] were unanimous in agreeing a wage deferral which will go a considerable way towards making sure Leeds stay in business until the end of the season," said Taylor.

Earlier yesterday English premier league chairmen have agreed to a nine point deduction for clubs that go into administration after June 3 this year.

Premier league chief executive Richard Scudamore said "Money plays a big part in where you finish in the league... and the view of the clubs is that if a fellow club overstretches, overspends and gets itself into difficulties, there should be a big disincentive to make sure they don't do that and that is why they have applied a nine-point sanction."