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Wednesday, 19 December 2007, 12:54 GMT

Leeds continue points loss fight

Leeds United Leeds United have continued their fight against the 15-point penalty imposed on them by the Football League in August.

The club have written to the FA to request that the matter now be referred to an Independent Arbitration Tribunal.

Under this provision a three-man panel is commissioned. The club and the FA both nominate one member each and the chairman is independent.

Leeds have also requested the hearing take place in public rather than in private as would usually happen.

The points deduction was imposed on 4 August, the same day that Leeds were granted their 'golden share', which allowed them to compete in the Football League this season.

The share had been suspended when Leeds went into administration at the end of last season, a decision that automatically incurred a 10-point penalty and sealed their relegation from the Championship.

The League want clubs coming out of administration to do so via a company voluntary arrangement (CVA), with football creditors paid in full.

Leeds' creditors originally opted for the club to be sold back to chairman Ken Bates via a CVA. But HM Revenue and Customs, unhappy at the plans by Bates to pull the club out of administration by paying creditors only eight pence in every £1, mounted a legal challenge.

The matter went to a High Court hearing in Leeds. Preliminary hearings were held on 6 July, with a date set for the full case to be heard in September - sparking fears the club might not start the season.

Administrators KPMG subsequently put the club up for sale and Bates then bought the club back off KPMG in a deal that could eventually be worth more than 50p in every £1 for creditors.

But the purchase meant that the club had not come out of administration via a CVA - with the League imposing their subsequent 15-point penalty for the breach of policy.

The chairmen of the other 71 Football League clubs voted "overwhelmingly" to sanction Leeds and then again to uphold the original punishment. In both cases, the outcome was higher than a 75% majority vote.

In a club statement at the time of their appeal against the penalty failing in August, Leeds said: "The only winner is HMRC and we believe the full ramifications of the decision will adversely affect football going forward for many years.

"The club is considering its options but in the meantime will be concentrating on starting its promotion campaign."

Manager Dennis Wise was also furious at the decision and said: "I'm disappointed with the whole thing. Minus 15 points. We have to get 106 points to win the league, 92 points to get in the play-offs and 70 points to stay up. Lovely. Thank you very much."



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Related to this story:

Leeds demand High Court hearing (23 Nov 07 |  Leeds United )
Leeds hit with 15-point penalty (04 Aug 07 |  Leeds United )
Leeds United resold to Ken Bates (11 Jul 07 |  Business )

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