More Trouble At Leeds

[Blue blood]

If reports are to be believed, Wilcox along with Batty, (who have played 12 games between them in 2 seasons) have been instrumental in leading the players revolt against the wage deferral.

And some people are suggesting that Wilcox (who was rapidly on the decline when he left Ewood anyway) should come back?

Jeez.

I think the reason people want Wilcox back is we're desparate for a left midfielder. Don't think he's the answer though. Barmby might be a better bet.

Certainly if Rovers are looking to strengthen the squad and haven't much money Leads is the type of place to go shopping. Smith, Matteo, Milner, Kilgallon there's still some bargins to be had there.

[LeChuck]

Barmby...

Please, don't do that again.  Ever.

[Blue blood]

Barmby...

Please, don't do that again.  Ever.

Just a thought.

There's not too many left sided players around, certainly those who we can afford. Granted Barmby's not the best player in the world, but he's not that bad. He's a pretty decent record with his past clubs and a fair few caps as well which proves he's got some talent.

[philipl]

The end is nigh. Whether the last ditch consortium with £20m can find a credible way to cover a NOW £100M+ hole or it is administration, to ask for a 48 hour extension when all previous talk was about a two week extension after today's deadline passed, this now looks like the end of this particular chapter.

Stand by for frenetic transfer activity on Wednesday and Thursday.

[Paul]

Here's a quick summary for the easily bewildered

leedsuniteddonothaveapaddle

The good news is one of the missing millions has re-appeared. Probably found it in the tea caddy.

Good link colin, thanks. can anyone explain this extract from The Guardian article:

"But when a football club enters administration players, staff, transfer fees and other "football debts" need to be paid before even the Inland Revenue gets its share"

I believed the bank, revenue and C&E were always first in line. Why is it different in football.

Does anyone know the answer to this?

[philipl]

I puzzled over that one and concluded the Grauniad had erred.

There is a provision for giving employees preference over the Crown where a company is so bankrupt there is almost literally nothing in the kitty. In that case, the employees receive a figure based on job seeker allowance before any taxes get paid.

I don't think this features too highly in anyone's thinking about Leeds.

My guess is that the Revenue have recognised that the surest way of getting their £8m is by letting a football entertainment continue at Leeds- that is probably where this comment has come from. However, they are most certain to get their money from a football-operating administrator than from Trevor Birch and the only reason they haven't pulled the plug is because there would be a political backlash to them doing so.

A Guardian articleon how pathetic the Leeds players are.

[philipl]

BBC's latest summation on Leeds. It does not look good for them.

[Grimshaw]

If leeds went into administration.. am I correct in thinking that any large future transfers from the club would go to the creditors with the club recieving a small percentage of this...

If this is the case wouldnt Leeds hold out for large transfer fees to increase their percentage?

Im #### at businesss so if anyone could clarify..

[Grimshaw]

[philipl]

Looks like Leeds havegot a four day extension which almost sees them through to the end of the trasfer deadline. The £20m bid seems to be sufficiently real to have bought the extra time.

[philipl]

What a surprise! The £20m from the Leeds consortium is not so real after all. Looks like the players are going to forego their 35% which could keep the club out of administration but still watch out for Leeds desperately selling anyone they can on Friday.

[Tom Pringle]

I bet they'll still get extensions right up until the last day of the season.

[Scotty]

Here's a quick summary for the easily bewildered

leedsuniteddonothaveapaddle

The good news is one of the missing millions has re-appeared. Probably found it in the tea caddy.

Good link colin, thanks. can anyone explain this extract from The Guardian article:

"But when a football club enters administration players, staff, transfer fees and other "football debts" need to be paid before even the Inland Revenue gets its share"

I believed the bank, revenue and C&E were always first in line. Why is it different in football.

Does anyone know the answer to this?

Paul,

I read the other day that the Premiership have rules in place stating that if a club goes into administartion all football debts (e.g outstanding transfer fees, players wages etc) must be paid first before anything else.

So the answer to your question is that it's because the league rules say so!

[Blue blood]

What a surprise! The £20m from the Leeds consortium is not so real after all. Looks like the players are going to forego their 35% which could keep the club out of administration but still watch out for Leeds desperately selling anyone they can on Friday.

To be fair no one in their right mind would seriously think of investing in Leeds. Even if you chuck in twenty odd million you've still got nothing out of it but another lot of rather sizeable debts staring at you.

And if they loose a few more decent players - Robinson, Matteo, Smith and Viduka, at least two of them will go I reckon, then relegation would look pretty much a certainty.

[stuwilky]

I read the other day that the Premiership have rules in place stating that if a club goes into administartion all football debts (e.g outstanding transfer fees, players wages etc) must be paid first before anything else.

So the answer to your question is that it's because the league rules say so!

I saw the same thing, but I doubted that Premier League rules would outweigh legislation, various Credit Acts and Companies Act (s)  etc......

I think administration is a very imminent arrival so only time will tell........

[1864roverite]

Leeds CANNOT command massive fees for their players in their current state as any serious money would be handed to creditors - at this time the creditors have set a limit of income into the club for the clubs purpose - if anthing over that limit is recieved then it goes out immediately, the other consideration is the lease companies that loaned cash against players values would then be able to step in and claim what is rightfully theirs.

£106 million seems to be a conservative estimate, mssrs Lorimar and Clarke have been interviewed by radio and put the debt at a total of around £135 million !

Whatever happens they appear snookered by the finance debts and surely if the players dont help out then they are doomed to failure.

it will be interesting at 0900hrs on friday when the announcement to the Stock Market is released.

[philipl]

This really has the feel of the end- debts figures spiralling upwards, doing a deal with ManU to trade the £3.25m outstanding on the Ferdinand transfer fee for £1.5m on Thursday etc.

The players are so thick, they screwed themselves.

Had they taken the 30% pay cut when it was "offered", Birch would have got his standstill to the end of the season last Friday and the club would have limped on- maybe even saved themselves from relegation and the players made themselves marketable again.  

As it is they have been brough kicking and screaming to accept a 35% pay cut which now won't be enough to save the club.

Of course, the administrator will say thank you very much for the pay cut boys and will immediately look to terminate everyone outside the 16 he needs for the next game.

[thenodrog]

The players are so thick, they screwed themselves.

Had they taken the 30% pay cut when it was "offered", Birch would have got his standstill to the end of the season last Friday and the club would have limped on- maybe even saved themselves from relegation and the players made themselves marketable again.  

As it is they have been brough kicking and screaming to accept a 35% pay cut which now won't be enough to save the club.

Of course, the administrator will say thank you very much for the pay cut boys and will immediately look to terminate everyone outside the 16 he needs for the next game.

Yes but everybody knows that 99% of professional footballers are thick!  How else would the players at LUFC have voted for David 'brains' Batty to be their PFA representative?  

Oh and as for their advisor philip. Gordon Taylor himself used to be a professional footballer.  Nuff said eh?

[92er]

Gordon has got a degree.And he played for us.

[Glenn]

I know plenty of thick people with degrees, IT middle management is full of them

[philipl]

The BBC's latest take on the Leeds situation. There is no doubt that the players have the club's fate in their pockets and at the moment are doing the club no favours.

Man City are tabling Leeds' failure to honour £10K per week payments to Robbie Fowler at today's Premiership meeting.

[Paul]

This really has the feel of the end- debts figures spiralling upwards, doing a deal with ManU to trade the £3.25m outstanding on the Ferdinand transfer fee for £1.5m on Thursday etc.

As a generalisation when a company goes into receivership/administration the first debt figure is often as little as 50% of the actual figure.

I'd be prepared to wager that when the administering accountants get in there the final figure may push as high as £200m or more. Leeds will only currently be revealing the debt figure that they are obliged to reveal...this has a long way to go yet.

Have they finished paying for Wilcox?  

[AlanK]

And if they do go in to administration they will narrowly avoid this

click here

[Alan75]

players have agreed a wage deferral

[Clive]

But will that save whatever's needed ?. The clock is ticking (unless there is another extension).