Leeds's League share is held back LEEDS UNITED was still officially a club in limbo last night after the Football League requested more paperwork from chairman Ken Bates.
But the delay was more of an irritation than a major stumbling block to Bates whose lawyers quickly dispatched the required documents. In essence, there is no longer a threat to Leeds kicking off the new season, the Football Association are happy for Leeds to play in pre-season friendlies, and manager Dennis Wise will be allowed to sign new players, subject to approval. Bates regained control of Leeds from administrators KPMG on Wednesday and the League's board of directors were expected to rubberstamp the club's exit from administration yesterday. But, as KPMG had ended their involvement in the case, they failed to attend the League meeting. For whatever reason, vital questions asked by the League board went unanswered. The League, who continue to regard Leeds as a club 'in administration' until they choose to return their share, wanted further assurances over the sale and also expressed concern at the "handling of the whole process" by KPMG. However, in a statement, the League stressed that clubs have always been allowed to start a new season in administration both Barnsley and Bradford City doing so in recent years and also pointed out that clubs in administration are entitled to sign players if they have less than 20 professionals on the books. As Leeds currently have only 17 players on full-time contracts there is nothing to stop manager Wise signing three new players as soon as possible. An FA source, meanwhile, confirmed that there would be no objection to Leeds playing friendlies as long as they have enough registered players which means tonight's game against York City at Bootham Crescent should go ahead as planned. After the trials and tribulations of the last few months, it should have been no surprise that Bates's buy-back deal would encounter a few last-minute hitches. Last night, the club issued a statement, saying: "Leeds United have received confirmation that the documentation outstanding from the administrators (KPMG), in relation to the Football League board meeting on Thursday, has now been forwarded to them for their consideration. "The club, as well as KPMG, have been asked to provide additional information, the last of these requests was received at 10am on Thursday morning. These have been answered in full to support our application for the transfer of the share. The club remain confident that any further questions that the League may have in this regard will be answered in full by return." Keen to bring the situation to a speedy resolution, the statement put fresh pressure on the League board, by saying: "The club are concerned that any issues the League board may have with the conduct of the administration process by KPMG should not affect the decision-making process as to the return of our share in the League and are seeking assurances from them on this point. "While the League confirmed a club can start the season in administration, the reality is that KPMG have not got the funding to give the League the assurances required to allow the club to start the season, so while it is allowed in the regulations, it is practically unachievable. The only way, therefore, for the club to start the season is for the share to be transferred." Legally, Bates's new company Leeds United 2007 Ltd is not in administration and owns all the football club's assets other than the share in the Football League. But, as the League have pointed out, clubs are allowed to play without a share in the competition for a maximum period of 18 months. KPMG opted to sell Leeds back to Bates for an undisclosed sum in preference to other interested parties without the need for a Company Voluntary Arrangement (CVA). Local property developer Simon Morris and London-based finance firm Redbus Group, headed by Simon Franks, expressed their surprise that Bates's latest offer for the club was accepted by the administrators ahead of their bids. In early May, Bates placed the club in administration with debts of around £35m, of which £7.7m was owed to the Inland Revenue. KPMG agreed to sell the club immediately to a newly-formed company headed by Bates and under the terms of his initial 1p-in-the-pound buy-back deal the Inland Revenue were set to receive just £77,000. Bates increased his offer to 8p in the pound, but his last-ditch offer to head off the Inland Revenue's legal challenge proved in vain. The High Court postponed a decision on the Inland Revenue's appeal until September 3. With the new season fast approaching, this prompted KPMG to scrap Bates's CVA proposal and put the club back on the market prior to announcing Bates had regained control two days ago. Last night, defending their absence from the League's board meeting, a KPMG spokesman said: "The Football League cancelled its board meeting, due for Thursday, earlier in the week, they then re-instated it but as we had already sold the club unconditionally we informed them that we would not be attending. "The club has been sold unconditionally. In any event, KPMG has not been requested to provide any documentation in relation to the sale completed yesterday. We have no issues whatsoever in how we have handled this case." The Football League statement in full At its meeting in London today, the Board of The Football League considered the reported sale of Leeds United by its administrators, KPMG. To date, no documentation regarding the sale has been submitted to The League by the administrators. Notwithstanding this, the Board was asked by the reported purchasers to consider an application to transfer Leeds United's share in The Football League to them. The Board was unable to consent to this request this morning. Instead it has requested, from the administrators, certain required documentation and assurances regarding the sale of the club. The Board also requires certainty on the current legal proceedings surrounding the administration. The Board had been expecting the administrators to attend today's meeting, as KPMG originally requested. However, The League was informed late yesterday afternoon that they would not be attending, with no explanation provided. Additionally, the Board expressed concern at the handling of the whole process by the administrators and the Chairman was instructed to obtain legal advice in that regard. Clearly any further delays in this process will be frustrating for Leeds supporters. However, like the club's fans, the Board recognises the pressing need for certainty regarding the future of League football in Leeds and has agreed to convene at the earliest opportunity to re-consider the share transfer, once it has been provided with all the relevant information. Also, for the avoidance of doubt, The League would like to make it clear that there is nothing in its regulations to prevent a club beginning a new playing season whilst in administration. What United fans are anxious to know . . . Q: Will Leeds United now be able to kick off the new season? A: YES. The Football League allows clubs to play in administration for a maximum of 18 months even without the transfer of the so-called 'golden share.' Q: Is manager Dennis Wise now able to sign new players? A: YES. Although the club remains the subject of a transfer embargo, League rules still entitle any club with less than 20 professionals to bring new players in, albeit on a case-by-case basis and subject to League approval. At the last count, Wise had 17 players at his disposal. Q: Do Leeds have permission to play in pre-season friendlies, including tonight's trip to York City? A: YES. The Football Association, who sanction friendlies, will allow Leeds to play as long as they are not breaching any of the game's rules and have enough registered players. Q: How much has Ken Bates agreed to pay to the creditors? A: No one knows just yet. It is believed to be more than his last offer of 8p in the pound, but will be revealed in a report to creditors at a later date. _______________________________________________ the Leeds List is an unmoderated mailing list and the list administrators accept no liability for the personal views and opinions of contributors. 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