More Trouble At Leeds

[Modi]

If as the Birch states, Leeds administration and are expelled from the Premiership, what does this mean?

Would all their matches so far be null and void?  If so, I've worked out what the table would look like instead...

1. Man Utd          43

2. Chelsea           41

3. Arsenal            39

4. Charlton           30

5. Fulham             28

6. Newcastle         25

7. Southampton     25

8. Liverpool           23  

9. Aston Villa        23  

10. Birmingham      23  

11. Rovers        21  

12.  Middlesbrough  21  

13.  Man City         20  

14.  Everton          20  

15.  Bolton            20  

16.  Portsmouth     16  

17.  Leicester        15

18.  Spurs             15

19.  Wolves           11

Makes interesting reading, not only from the possible much healthier position for Rovers, but also illustrates in another way how tight results and positions are this year. - Notlob go from 2 positions above us to 3 below all based on the fixtures of one other club!

[Alan75]

Looks like January Sales at Leeds, as they are having problems finding a backer.

Reports this morning state they have only untill Monday before they go into administration.

[Jimbo]

On Radio 5 last night an analyst really only gave one option to Leeds and that was administration. This in itself doesn't seem to give the much hope either, as apart from the 10 point deduction that the FA/League have decided to impose on clubs in administration there is also the thorny issue of who has first dibs on the money. Renegotiation of their debts will probably prove to be difficult with Leeds owing a reputed 8 million quid to the Inland Revenue, a department not normally known for their sympathetic attitude to Footie clubs in trouble. The American bond holders will want their share of the gate receipts and the fact that the FA insist that precedence is given to other footie interests will not please the other parties - this is going to run & run & I can't see Leeds getting out of it.

Take note all those who want to mortgage Rovers to the hilt to buy success - the risks are massive & the rewards aren't.

[jim mk2]

Trevor Birch got the job at Leeds on the strength of his success in finding Abramovich to save Chelsea (so we can thank him for us losing Duff, which is another story).

Birch then lost his job at Chelsea (cut-throat business football) and I would say he might lose his post at Leeds unless he can save them from going into adminstration.

Monday is the crunch for Leeds - unless Birch can pull a rabbit out of the hat between now and then, the adminstrators will come in and sell everything that moves, or doesn't in the case of the fixtures and fittings at Elland Road.

Pity the poor Leeds fans who hold shares in the club - totally wiped out and not a penny returned on their investment.

[Tom Pringle]

Looks like January Sales at Leeds, as they are having problems finding a backer.

Reports this morning state they have only untill Monday before they go into administration.

Bloody hell, even Notts County got out of admin with about 10 deadline extensions!

I think leeds might get a fair few more.

[Clive]

Maybe that Green bloke who ows BHS will come steaming in on Saturday and save the day. It happened just before Chelski were about to collapse.

[Scotty]

Looks like January Sales at Leeds, as they are having problems finding a backer.

Reports this morning state they have only untill Monday before they go into administration.

Bloody hell, even Notts County got out of admin with about 10 deadline extensions!

I think leeds might get a fair few more.

Leeds have two chances to get out of it.  

1: Someone puts in enough money between now and Monday to pay off the immediate debts.  This will allow Leeds to continue until the next major repayment is due.

2: Someone comes in with £100 million or so to completely wipe out all the clubs' debt.

Option 2 isn't going to happen.  Option 1 might but it will only be delaying the inevitable.  Leeds will be in the first division and in administration next season.  There's every chance they could be the next Sheffield Wednesday and fall even further.

[Neil Weaver]

And for anyone interested, an Independent (article) view : Potential Leeds rescuers shun the group's shares.  Oh dear what a shame never mind.

[broadsword]

Maybe that Green bloke who ows BHS will come steaming in on Saturday and save the day. It happened just before Chelski were about to collapse.

From what I read, Green wasn't going to put money in as a principle shareholder, but was rather going to lend money to Leighton to leverage his purchase.

From a purely mercenary point of view, I want Leeds to go into administration and get 10 points docked.

Wolves have had it, and in the scenario above Leeds would almost certainly have had it, meaning that there was only one place to play for (or should I say, avoid). Dog eat dog in the current financial climate!

[Nuclearsox]

As far as I was aware, the 10 point deduction only applies to clubs in the Nationwide that go into administration - so Leeds would be spared that if they go into administration before they are relegated.

If they manage to sort out the short term to avoid administration and are still relegated, administration would surely follow with a 10 point deduction that could see them drop into the 2nd division. Quite a big risk.

So Scotty's option 2 would seem the only way for them to avoid administration on Monday.

[philipl]

I don't believe there is a rule on deduction of points if a Prem club goes into administration but there would be a requirement for the other clubs to decide on expulsion. In the dod-eats-dog world of the Prem, is it realistic for clubs not yet mathematically safe not to vote Leeds out?

[Clive]

Maybe that Green bloke who ows BHS will come steaming in on Saturday and save the day. It happened just before Chelski were about to collapse.

From what I read, Green wasn't going to put money in as a principle shareholder, but was rather going to lend money to Leighton to leverage his purchase.

From a purely mercenary point of view, I want Leeds to go into administration and get 10 points docked.

Wolves have had it, and in the scenario above Leeds would almost certainly have had it, meaning that there was only one place to play for (or should I say, avoid). Dog eat dog in the current financial climate!

Do you mean Green was to lend money for someone else to buy the club, and their shares, rather than buying them out directly ?. I admit I have part of me that wants to see them go tits up as well. We might sign a few decent players on the cheap as well.

[broadsword]

Do you mean Green was to lend money for someone else to buy the club, and their shares, rather than buying them out directly ?. I admit I have part of me that wants to see them go tits up as well. We might sign a few decent players on the cheap as well.

Yeah, that's more or less it, Green was going to be one of Leighton's backers.

[Clive]

Right I understand now. I suppose it would mean Green would not be lumbered with Leeds United plc., and be directly affected by  running costs, transfer fees etc.

[broadsword]

Probably - don't ask me!

I may have unintentionally given the impression before that I knew something about finance by putting some trendy words in there.

What Green could hope to get back by sticking some money I wouldn't know. He's so rich maybe it's just a bit of money to play around with.

[Clive]

Maybe he's a Leeds fan, but doesn't want to get too involved in the expensive job of owning a football club. Abramovic won't recoup the money he's spent.

[Paul]

Looks like January Sales at Leeds, as they are having problems finding a backer.

Reports this morning state they have only untill Monday before they go into administration.

Bloody hell, even Notts County got out of admin with about 10 deadline extensions!

I think leeds might get a fair few more.

Leeds have two chances to get out of it.  

1: Someone puts in enough money between now and Monday to pay off the immediate debts.  This will allow Leeds to continue until the next major repayment is due.

2: Someone comes in with £100 million or so to completely wipe out all the clubs' debt.

Option 2 isn't going to happen.  Option 1 might but it will only be delaying the inevitable.  Leeds will be in the first division and in administration next season.  There's every chance they could be the next Sheffield Wednesday and fall even further.

Leeds face problems that neither option can truly address. The first option simply postpones the crisis, buying more time to find backers while the second wpuld probably still founder as Leeds do not have sufficient income to cover their operating costs. Gate receipts are mortgaged, players such as Viduka are earning £3.5m pa, Sky money is a mere £20m which probbaly doesn't even cover half the wage bill, none of it adds up.

Assumming Leeds are relegated they have to go into administration BEFORE that event. The PL doesn't have a rule to deduct points from clubs in administration while the Nationwide does have a rule to deduct 10 points from clubs that GO into administration. I think a PL club relegated and already in administration would not suffer the ten point penalty. On this basis Leeds will go into admin sometime this season, probably forced by the player motgage company that effectively owns the team.

[colin]

Just pasted this in from

Football365 I hope that's acceptable.

Got to admire this guy's senses of restraint & humour. I'm pretty sure I'd be ranting & frothing if I was in his shoes:

"LEEDS: FROM BAD TO WORSE TO...

Monday January 12 2004

Mark Viduka has gone home, we’ve only one available centre-half for the Southampton game (mind you, how many do you really need against Southampton?) and Alan Smith is a booking away from another ban.

Tumbleweed is blowing around the West Stand, distant coyotes howl from Beeston Hill and you can hardly see the sky for vultures. Oh, and I found this memo while I was going through the Elland Road bins collecting ‘official merchandise’...

"In the event of the termination of the brand ‘Leeds United Football Club’ there will inevitably be confusion and panic among supporters. Calm them with details of swift and decisive re-allocation.

"Season-ticket holders will be allocated depending on length of time they have held their seats, amount of merchandise purchased and tattoos. Those who qualify in the ‘Upper Band’ (Over 20 years' support, Leeds Utd wallpaper, first-born called Billy or ‘Sniffer’) will be allocated a ‘high-end’ club - Liverpool, Arsenal, Manchester United, Chelsea.

"All supporters designated ‘Middle Band’ should be entered in a ‘prize draw’ featuring mid-table teams - Fulham, Southampton, etc. Low-level supporters should return to the town or city of their birth to be reassigned a team. The sick, lame and weak will be divided between Bradford City and Leeds Tykes Rugby Union."

Yet another terrible week and there's not too long to go before we know whether we’ve been bought or The End is nigh. This is terrifying stuff. Not as terrifying as our continual post-lobotomy-style business sense, however.

According to decent sources, another bit of excellent wheeler-dealering is based around Cyril Chapuis - a striker Reidy took on a year’s loan from Marseille.

Chapuis said last week that Eddie Gray had suggested he wouldn’t be ‘relying on French players'. Cyril decided he would be better off trying to find another club.

Strasbourg came in for him and off he went, guaranteed a bit more first-team stuff. Lovely and heartwarming, and I’m glad wee Cyril is happier and enjoying himself, but for the fact that we are still paying him. No-one has revealed the amount, but we are ‘making a contribution’ to his 700k-a-year wages.

We fiscal genii are effectively paying a bloke who can’t get in our side to go from Marseille to Strasbourg on loan. Maybe we deserve to be wound up. It definitely can’t be allowed to continue.  

There are all sorts of theories about what’s been happening to us and why. Bad business, dressing-room fall-outs, etc. The best I’ve heard recently is that the rot set in when we unveiled ‘Lurpak’ as the sponsors of the East stand. So the first thing opposition players see when jogging out of the tunnel is a giant homage to lard. Hardly ‘This is Anfield’, is it?

More bad news. Georgi Kinkladze is here on a two-week trial. Do we not know what happens to clubs who sign Kinkladze? We might as well ring Dave Bassett now and just take voluntary relegation.

So relegation, administration, winding-up or all three? While we decide what order to take them in, let’s start some forward planning.

If we are going to do a Wimbledon and open the show again somewhere else, can we please stay out of Milton Keynes? Dublin would be lovely, but what about somewhere with a bit more nive weather? South of France is great, I hear. Or Spain. Somewhere like that.  

Wherever we end up (Portugal’s nice) we have to think about what went wrong. ‘Living the Dream’ should never have been about paying outrageous sums for Seth Johnson, Robbie Fowler or tropical goldfish. Living the dream should have been about having a sensible, proper manager, an end to these frightening ‘business deals’ and some committed and well-behaved players.

Even better than that, we actually had the money to live a really great dream - like the one I had about Lisa Tarbuck, a jet-pack and a third tap for lemonade."

[philipl]

This is the most optimistic view of Leeds' current predicament I have seen but it also recognises the reality that Leeds United plc is all but dead- the choice is euthenasia or a long painful ending.

I cannot see how or why anybody would go for the short term solution- pumping £20m in primarilly to service debt and scheduled loan payments with a gamble on them still being in the Prem come the summer. Interesting to read that Alan Leighton is the only credible saviour when Trevor Birch appeared to support the grievances against him at the AGM. Doesn't seem very credible.

The only cogent argument against administration is that the other Prem clubs would take action to ensure their demotion and the consequent loss of £20m income. That is pretty weak and won't stop the biggest creditor from pulling the plug.  Even flogging Viduka for £8m (if they can get that price in current market conditions which seems very unlikely) will only pay a proportion of the player mortgage debts and release no cash for the football side.

Trevor Birch will prove to be the most brilliant alchemist around if Leeds are not bust by 19 January. There maybe false dawns as various bottom fishers look for value in the dredgings but there is only mud at the bottom of this one.

[Jolly Giraffe]

Leeds United, four days away  from going into administration, are believed to have asked their players to take  a 20% pay cut, and are now willing to listen to offers for all their big-name  stars.

The Premiership outfit are believed to have called in Professional  Footballers' Association boss Gordon Taylor for an emergency meeting with the  club's entire playing staff in a desperate attempt to ease their £83million  dept.

Leeds have asked Taylor to hold negotiations with the players about  taking a 20% deferral of wages for the length of their contracts as the club  faces going into administration if they do not find a solution to their  financial crisis by the Monday deadline set by creditors.

The club's 'stand-still'  agreement with their creditors is due to end in four days time, and  acting-chairman Trevor Birch is working frantically behind the Elland Road  scenes in the hope of attracting a buyer for the debt-laden club, or at least  enough investment to see Leeds safely through until the end of the  season.

The Premiership side are therefore willing to listen to offer for their  most valuable players - strikers Alan Smith and Mark Viduka and goalkeeper Paul  Robinson. Viduka is expected to be the first to go, as his £65,000 a week salary  is proving to be a huge strain on the club.

Bahrain Sheikh Abdulrahman  Al-Khalifa has been heavily linked with a take-over bid for the club. However  nothing concrete has yet materialised and should Leeds go into administration  the Premier League would almost certainly impose a points penalty on the  struggling side, which would push them closer to  relegation.

[SouthAussieRover]

Is there a link for that?

[AndyR]

Just been reading the same article on

http://www.wldcup.com/news/2004Jan/20040115_21905_world_soccer.html

Alan Smith for £1.5m on Monday sounds like a real deal to me, James Milner is left sided and there may be one or two others. Vultures circling over Elland Road lets get in first as once those administrators receive bids the decent players will be on their way.

[philipl]

Birch is desperately trying to auction off Paul Robinson today. Unfortunately for him, Calamity James' move from WHam took City out of the bidding.

[broadsword]

City would never have paid the 4 mill Leeds are allegedly looking for. They have money problems of their own.

[joey_big_nose]

Just been reading the same article on

http://www.wldcup.com/news/2004Jan/20040115_21905_world_soccer.html

Alan Smith for £1.5m on Monday sounds like a real deal to me, James Milner is left sided and there may be one or two others. Vultures circling over Elland Road lets get in first as once those administrators receive bids the decent players will be on their way.

I think even the most pessimistic Leeds fan would anticipate getting at least £4 million for Smith. Birmingham would pay that in a shot so its up from there. I cant think of a club in England who wouldnt be interested- Arsenal, Man U, Newcastle are all actively looking for strikers. If it is a fire sale then I would think around £25 million at least for the squad could be raised. Milner would certainly be an interesting target.