Friday, May 04, 2007

Leeds United sold and relegated on the same day...

I find this news ever so slightly incredible. As I posted earlier in the afternoon there was strong rumours circulating to the effect that Leeds United were about to go into administration. The idea being that the club would avoid a 10 point deduction next season by taking it on the chin this season. Which is precisely what has happened, but not only that the new appointed KPMG administrators have agreed to sell the club to a new company which is owned by Ken Bates, who is currently the majority shareholder. I'm less than convinced that the consortiums hovering around in the background who were looking to buy the club will be entirely happy, I can only assume that KPMG have brokered an agreement with the existing creditors for this deal to go through. Leeds have a reported debt of £35m. Could the administrators have got a better deal for the clubs creditors?

As a result of these moves today, it means Leeds United have been officially relegated.

UPDATE: On further investigation, the sale of the club is subject to the agreement of the clubs existing creditors. This sorry saga is far from over....

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