Business expert backs Leeds move

Leeds’ declaration that they may soon “be forced to seek the protection of an administration order” has been welcomed by a leading business expert.

In a bid to restructure their debts of £78m (€111.8m), Leeds have recently held lengthy negotiations with two of their major creditors, which has so far failed to reach a satisfactory conclusion.

Dr Bill Gerard, of the Leeds Business School, told Sky Sports News: “I think it’s a move forward in the sense that we’re getting closer to the admission that Leeds United PLC in it’s current state is no longer a going concern and is likely to go into administration sooner rather than later.

“The news that we got yesterday is really a last-ditch threat to the creditors, cut us some slack or we’re going into administration.”

Gerard feels that last Saturday’s 2-0 loss to Bolton sent even more alarm bells ringing around Elland Road.

Leeds are now firmly entrenched at the foot of the Premiership table, two points adrift of Wolves, as the threat of relegation looms ever larger.

He added: “I think the result on Saturday against Bolton Wanderers, that that has probably done more than anything to bring about this announcement.

“I think everybody is running scared, the investors, the fans, everyone sees the abyss that is staring Leeds United in the face.”

Football League bosses may decide to close a loophole which could allow Leeds to escape a mandatory 10-point penalty for going into administration.

As Nationwide League rules stand, a club who enters administration while in the Barclaycard Premiership and are subsequently relegated in that same season could avoid the points deduction.

However, a league spokesman had news for anyone hoping Leeds could avoid losing points next season – should they be relegated – by giving into their £78m (€111.8m) debts over the next few months.

“It [the points penalty] is under consideration regarding clubs that go into administration in the Premier League and are then relegated,” said the spokesman.