League Seeks Assurances Over Leeds Sale

The Football League today asked for assurances regarding the sale of Leeds United to Ken Bates before it will reconsider handing the club its 'golden share'. Leeds's administrators, KPMG, agreed to sell the club back to Bates in preference to two other bids yesterday but there are still stumbling blocks before the deal can be ratified.

KPMG opted to sell Leeds back to Bates for an undisclosed sum without the need for a Company Voluntary Arrangement (CVA) and that does not sit favourably with the Football League. Competition rules stipulate that, once in administration, the Football League will only hand back its share if a CVA has been agreed by the majority of the club's creditors.

A Football League statement read: "At its meeting in London today, the board of the Football League considered the reported sale of Leeds United by its administrators, KPMG. To date, no documentation regarding the sale has been submitted to the League by the administrators. Notwithstanding this, the board was asked by the reported purchasers to consider an application to transfer Leeds United's share in the Football League to them.

"The board was unable to consent to this request this morning. Instead it has requested, from the administrators, certain required documentation and assurances regarding the sale of the club. The board also requires certainty on the current legal proceedings surrounding the administration. The board had been expecting the administrators to attend today's meeting, as KPMG originally requested.

"However, the League was informed late yesterday afternoon that they would not be attending, with no explanation provided. Additionally, the board expressed concern at the handling of the whole process by the administrators and the chairman was instructed to obtain legal advice in that regard."

The League said it would reconvene at the earliest opportunity to reconsider the share transfer, once it has been provided with all the relevant information. There is nothing in its regulations to prevent a club beginning a new season while in administration.