Leeds United On Edge Of Abyss
FOOTBALL’S very own Bad Santa, Ken Bates, has warned that the end could well be nigh for Leeds United if a new legal challenge by the taxman proves successful.
The famous club was put into administration by Chelsea’s agent Bates on May 4 with relegation to League One already a formality.
The chairman then formed a new company in order to buy Leeds back. While creditors did accept Bate’s offer of one penny in the pound last month, the spectre of a new legal challenge by Revenue and Customs could scupper Bates’ plans.
Revenue and Customs are still owed £7.7million in unpaid taxes by the club and decided to take up the option of appealing on the last of the 28 days available.
A spokesman for the club’s administrator, KPMG, says: “We are reviewing the notification of appeal and considering our response. Leeds United is not in liquidation and the status quo remains. We are in control of the company because the CVA [Company Voluntary Agreement] has been considered and approved.”
The case may end up in the High Court and even if it doesn’t, any protracted action could severely scupper Leeds’ chances of regrouping and mounting a serious promotion challenge next season.
Former Leeds chairman Peter Ridsdale said “We lived the dream”. And then the reality dawned…
Posted: 4th, July 2007 | In: Back pages Comment (1) | TrackBack | Permalink
