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Leeds Utd calls in administrators
Leeds United is widely expected to be relegated at the weekend Former Premiership football club Leeds United has called in administrators. It will mean United are docked 10 league points, but it is not clear if that would happen this season or next. The news comes just hours after the Leeds United Supporters Trust told the club it was in a position to make a serious proposal to buy the club. Leeds has been struggling with its finances in recent years and relegation from the Championship will certainly eat into earnings for the coming year. In recent years the club has sold its Elland Road home ground and its Thorp Arch training ground to cover previous cash shortfalls. The fact that contracts for a number of high-price players run out this summer also means that the club will run short of valuable assets later this year. Uncertainty By entering administration the club can be held together while plans are put in place to restructure or sell it. Experts predict that by making such a move, the club would be able to get rid of some of its debts. Leeds would then be a more attractive investment and takeover target because any new owner would not have to take on its entire debt burden. Under League rules, introduced in 2003, teams are deducted 10 points if they enter administration. Wrexham was the last club to befall such a fate in the 2004/5 season. By taking the decision to go into administration during the current season, Leeds could have 10 points deducted now while the team is still in the Championship, rather than when it started next season in League One. Should the penalty be held over, it would mean that the club started next season with a points tally of minus 10, a deduction that could seriously damage its prospects and could leave it in trouble for the rest of the 2007/8 season. Leeds' chairman Ken Bates has been working hard to attract new investment to the club, but has so far had little success. As well as the supporter's club, Leeds defender Gary Kelly has also been linked to a possible Irish takeover bid for the club. |
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this leeds thing how the mighty have fallen it only seems like yesterday that they got a (safe european) home draw in the champions league whoever takes them over needs to have (the right profile) |
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There won't be many career opportunities for the Leeds squad after their relegation either |
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