United settle Rio transfer money with Leeds

Manchester United have agreed to pay Leeds £1.5m (€2.1m) as a final settlement on the Rio Ferdinand transfer.

The England defender joined United in July 2002 for a fee then agreed as £29.3m (€42.5m).

However, crisis club Leeds, who have until 5pm on Friday to raise £5m (€7.2m) which would satisfy creditors until the end of the season, have accepted a reduced amount instead of the £3.25m (€4.7m) still outstanding on the deal which would have been paid in instalments.

It means Leeds chief executive Trevor Birch is a step closer to helping the Elland Road club avoid administration.

In a statement to the Stock Exchange, United announced: “Manchester United has agreed to pay to Leeds United FC, via the FAPL (Premier League), tomorrow £1.5m (€2.1m) in full and final settlement of the deferred conditional sums due on the Rio Ferdinand transfer totalling £3.25m (€4.7m).

“A levy of £75,000 (€108,000) is also payable to the FA Premier League.”

Ferdinand is currently appealing against an eight-month ban from the Football Association for missing a drugs test.