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Last Updated: Friday, 4 May 2007, 15:09 GMT 16:09 UK
Relegated Leeds in administration
Leeds boss Dennis Wise consoles striker Richard Cresswell after last week's draw with Ipswich
Dennis Wise (left) and Leeds must look forward to life in League One
Leeds United have been relegated to League One after being deducted 10 points for going into administration.

The 10-point deduction - in accordance with Football League rules - means Leeds will finish the season at the bottom of the Championship.

However, they will not lose any points for the start of their first season in League One in August.

Administrator KPMG has already agreed to sell the club to a newly-formed company led by chairman Ken Bates.

A KPMG statement said: "Shortly after their appointment the joint administrators agreed to sell the business and its assets to a newly formed company.

"This company is called Leeds United Football Club Limited, the directors of which are Ken Bates, Shaun Harvey and Mark Taylor.

A cash injection of approximately 10m is required to continue trading

Leeds' administrators

"The sale of the club is subject to approval by its creditors, via a Company Voluntary Arrangement (CVA).

"The creditors' meeting, to consider the CVA, will be held before the end of May. The Football League will also need to approve the sale."

Former Chelsea chairman Bates hailed a new era for the club - but also criticised the old regime for incurring huge debts.

"The action taken brings to an end the financial legacy left by others that we have spent millions of pounds trying to settle," said Bates.

"But the important thing now is not to view this as the end, but the beginning of a new era.

"The financial burden of the past finally pushed the club into administration following the issuing of a winding up petition by HM Revenue & Customs, who will be one of the company's major creditors.

"The other parties who will suffer the biggest financial loss are institutions from which the board arranged funding: Astor Investment Holdings, Krato Trust and Forward Sports Fund who collectively will lose in excess of 22m."

606: DEBATE
ZB

The Football League has confirmed Leeds' 10-point deduction and expressed its disappointment.

"Following confirmation that Leeds United have obtained an administration order, the Football League can confirm that the club has been deducted 10 points from its 2006/07 tally," said head of communications John Nagle.

"Given the recent reduction in the numbers of clubs resorting to formal insolvency proceedings, it is disappointing that Leeds United have had to seek the protection of an administration order.

"Discussions have already begun aimed at establishing how Leeds United intend exiting administration.

"This will have to include complying with the League's insolvency policy under which all 'football debts' must be settled in full."

KPMG revealed Leeds had debts "totalling approximately 35m, with a cash injection of approximately 10m required to continue trading".

The Coca-Cola Football League Championship Table
30 January 2010 19:21
    P GD PTS
1 Newcastle 27 27 56
2 Nottm Forest 28 23 52

3 West Brom 27 26 50
4 Cardiff 27 22 45
5 Swansea 27 3 42
6 Sheff Utd 27 4 41

7 Blackpool 27 10 40
8 Leicester 26 2 39
9 Middlesbrough 28 7 37
10 Bristol City 27 -4 36
11 Preston 26 -2 35
12 QPR 27 -4 34
13 Doncaster 26 -1 33
14 Coventry 28 -8 33
15 Barnsley 26 -8 33
16 Scunthorpe 27 -13 33
17 Watford 26 -6 32
18 Derby 28 -11 32
19 Sheff Wed 28 -12 31
20 Crystal Palace 27 2 30
21 Ipswich 27 -8 29

22 Reading 27 -16 26
23 Plymouth 26 -14 24
24 Peterborough 28 -19 18

SEE ALSO
Leeds Utd calls in administrators
04 May 07 |  Business
Fans group plots to buy Leeds Utd
04 May 07 |  Leeds United


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