myoudale Posted November 26, 2003 Report Share Posted November 26, 2003 may be the 1st club in the premiership to be put into administration its a shame i think because football is run by money what do other people think? :Confused13: Link to comment Share on other sites More sharing options...
Guest pogue mahone Posted November 27, 2003 Report Share Posted November 27, 2003 This looks to be brinkmanship by the leeds board. They see the key as restructuring the debts that Ridsdale and co accrued. Understandably the creditors don't want to do that, so the club appears to be threatening to push things to a point where the creditors would get a lot less than their outlay back. A dangerous game, but perhaps a hand one might play as a last chance. Link to comment Share on other sites More sharing options...
Guest WillsbridgeRed Posted November 27, 2003 Report Share Posted November 27, 2003 It stinks. They should be forced to sell off all their assets untill all debts are payed - Same should happen to all other clubs. Link to comment Share on other sites More sharing options...
Guest pogue mahone Posted November 27, 2003 Report Share Posted November 27, 2003 but there lies the problem, current assets are less than current liabilities so they can't do that. Link to comment Share on other sites More sharing options...
Guest WillsbridgeRed Posted November 27, 2003 Report Share Posted November 27, 2003 It is a spectacular fall from grace by anyone's imagination - This would also be Chelsea right now if it wasn't for their oil daddy. Leeds are the reason we should never gamble our spending for short term gains - ALways plan for the long term Link to comment Share on other sites More sharing options...
Guest pogue mahone Posted November 27, 2003 Report Share Posted November 27, 2003 refering to ed h's comments, as i understand it the sale of players isn't really an option because leeds don't own them. half a dozen of their best players - including England internationals Paul Robinson and Alan Smith - are mortgaged to a previously little-known finance company. When Leeds bought Mark Viduka from Celtic for £6m three years ago, for example, not a penny was put up by the club. The whole amount came from Registered European Football Finance. In return, Leeds pays back an agreed sum every month. These deals are a recipe for disaster. Since the club does not have to put the cash up immediately, it is tempted to live beyond its means. If the player performs well and his potential transfer value goes up, REFF may be persuaded to increase the loan. The extra cash raised can then be spent on other players, putting the club even further into debt. It is not even necessary to buy a player to raise cash against his value. Budding stars who have been brought up through a club's youth scheme can be "mortgaged", with REFF putting up a loan that can then be used to assist further the transfer-market spending spree. But if the player turns out to be a dud, the club is left with negative equity and possibly falling gate receipts. As City analyst Vinay Bedi at investment firm Wise Speke said: "This is the equivalent of buying an expensive home and then losing your job." Should Leeds need proof of the perils of these financial arrangements, they need only look down the road to Bradford City which went into administration last year. Among its debts was £7m to the German insurance company Gerling, which had underwritten loans from Mr Ranson's outfit. Leeds United, according to its balance sheet, owed about £21m on sale and leaseback at its financial year end of 30 June. Half a dozen players are subject to this arrangement although the club is not prepared to say who they are. However, soccer circles believe that Robbie Keane and Danny Mills were subject to sale and leaseback arrangements. Keane was bought for £12m and sold for £7m, presumably leaving Leeds to continue paying for outstanding debt after he had been sold. The accounts also show a loss on player trading of £17m, which gives a pretty stark indication of how the leasing company swallows up cash when mortgaged players are sold. This will be thrown up at business schools for years to come as how not to run a business. Link to comment Share on other sites More sharing options...
Northern Red Posted November 27, 2003 Report Share Posted November 27, 2003 Heard on TalkSport this morning that the Premier League are considering introducing a 9-point deduction for teams who go into administration. When asked, only 6 clubs backed it. The club leading the opposition to it was Leeds United, now I wonder why that was! Link to comment Share on other sites More sharing options...
Taz Posted November 27, 2003 Report Share Posted November 27, 2003 Heard on TalkSport this morning that the Premier League are considering introducing a 9-point deduction for teams who go into administration. Well something needs to be done. They've introduced it in the Nationwide (or about to not 100% sure) so why not hit the "big boys" with a similar thing!? Too many clubs are using this administration clause to help their financial position, and then suddenly find the money to bring in new players ala Swindon, Notts County etc. Why should the bigger clubs dictate to the smaller clubs, and be treated differently where administration was concerned? Make them sell there best players (all 6 of them), and anything else to help eradicate the debt. When they get relegated they'll all leave anyway, and Leeds will end up with a team of rejects that nobody else wants, and youth players. They've bought it on themselves. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.