Leeds to struggle against deduction

Leeds face a battle to persuade fellow Football League clubs they do not deserve to start the season with a 15-point penalty.

Last night the club were granted their Football League share – enabling them to start the Coca-Cola League One campaign – but incurred a penalty for not complying with the authorities’ rules on insolvency.

Leeds immediately appealed against the punishment and their case will now be heard at a special meeting of all league clubs, to be arranged in due course.

However, the Elland Road side are remaining positive and stressed the decision by the League – which lifted their transfer embargo – allowed them to start preparing properly for the new campaign.

“The club has received an amount of criticism from supporters for not keeping them up to date with developments during what has been a very difficult time for us all,” said a statement on the club’s website, www.leedsunited.com.

“We appreciate this policy was difficult for fans to accept, but please be assured that this has been done in the best interests of Leeds United, which is justified by the return of the share.

“We are now planning the appeal and we are able to complete the squad rebuilding for the 2007/08 season, albeit with only one week to go before our first League One game at Tranmere.”

Doubts had been raised over Leeds’ future after the club, bought back out of administration by chairman Ken Bates, failed to agree a Company Voluntary Arrangement to pay off an acceptable amount of their debts to creditors.

The Football League, in making their decision, accepted there were “exceptional circumstances” but stressed they could not allow Leeds to operate outside the strict rules concerning administration.

“The Football League Board agreed that, notwithstanding the manner in which this administration has been conducted, the club should be permitted to continue in the Football League,” said a statement.

“Consequently, the board has decided to make use of the ’exceptional circumstances’ provision within the League’s insolvency policy, for the first time, and agreed to transfer the club’s share in The Football League to Leeds United 2007 Ltd. Accordingly, the club’s share has now been transferred.

“However, it is acknowledged the club did go into administration and has been unable to comply with the terms of the League’s well-established insolvency policy.

“As a result, the board determined this transfer of membership should be subject to Leeds United having a 15-point deduction applicable from the beginning of the 2007/08 season.”