Pressure builds on KPMG over Leeds sale By Roger Blitz, Leisure Industries Correspondent
Published: July 12 2007 21:55 | Last updated: July 12 2007 21:55 The Football League has ratcheted up the pressure on KPMG, the administrators of Leeds United, saying on Thursday that there was nothing to stop the club from beginning the new season on August 11 while under administration. The league is threatening court action against KPMG, furious about the way the administrator has handled the clubs debts and its resale to Ken Bates, the chairman who took Leeds into administration with debts of £35m. To date, no documentation regarding the sale has been submitted to the league by the administrators, the league said in a statement on Thursday. Its dispute with KPMG is developing into a trial of strength, with insiders at KPMG claiming that without its prompt actions the club would be in liquidation by the start of the season. KPMG sold Leeds back to Mr Bates for an undisclosed sum in a hastily arranged auction even though it did not have a Company Voluntary Arrangement in place. That was because Revenue & Customs had objected to the penny in the pound credit terms offered last month by Mr Bates. Insiders at KPMG said while they knew the league would not look favourably on a sale without a CVA, the prospect of the club running out of cash made for exceptional circumstances. Prolonging the process would have jeopardised the future of the club, KPMG insiders said. It wouldnt have made it to the start of the season. But the league believes KPMG has acted with undue haste. What the league will not do as a matter of principle is agree to the transfer of Leeds share in the league before the Revenues objection is either upheld or defeated, one league insider said. They have got a proper objection which needs to be heard in court. Accusations flew on Thursday about KPMGs alleged lack of communication with the league over the sale. The league said KPMG had asked to attend Thursdays board meeting, and the league had expected it to be there. The league was informed late yesterday afternoon that they would not be attending, with no explanation provided, its statement said. Relations have sunk to the point where the league is prepared to take KPMG to court to have its decisions overturned or to seek compensation for breach of duty. For its part, KPMG declined to comment. But insiders said it was not obliged to pass information to the league, and that in any event the club had done so and that it was informed by the league early this week that the board meeting would not be taking place. _______________________________________________ the Leeds List is an unmoderated mailing list and the list administrators accept no liability for the personal views and opinions of contributors. Leedslist mailing list [email protected] http://list.zetnet.co.uk/mailman/listinfo/leedslist Join The Leeds United Supporters Trust at www.lufctrust.org
