Countdown to Meltdown

[David Votoupal]

Looks like it's really going to happen to Leeds unless someone can find the cash to save them pronto:

http://soccernet.espn.go.com/headlinenews?id=288395&cc=3436

http://soccernet.espn.go.com/feature?id=288456&cc=3436

 

[moomba]

Haven't read the articles yet, but it seems like dirty lids won't be saved in the next week. They'll pull out of it though, but it will take some pain, and some loyalty.

Cue many transfers in the next two weeks.

Moomba

 

[Shinboners]

And from Red Issue:

Red Issue understands that Leeds United are set to go into administration on Monday. All rescue packages have failed and aparently the players will be asked to take a 30% deferment of their wages. We also understand that Alan Smith has a clause in his contract that means that if he doesn't accept this, he has the option to leave for free. Nothing is confirmed but this has come from a very good source. More on the news tomorrow.

 

[tribey]

Originally posted by Shinboners
We also understand that Alan Smith has a clause in his contract that means that if he doesn't accept this, he has the option to leave for free.

So much for all the 'Alan Smith would never leave' w@nk we kept hearing.

 

[Shinboners]

The vultures are circling.

http://football.guardian.co.uk/News_Story/0,1563,1124302,00.html

Boro move for £5m Viduka as Leeds buckle

While players prepare to move out, insolvency experts move in

Michael Walker and Daniel Taylor
Friday January 16, 2004
The Guardian

Leeds United go into the most critical three days of their history with Middlesbrough preparing an offer for Mark Viduka, renewed speculation about a Newcastle bid for Alan Smith and the Professional Footballers' Association bringing in a firm of insolvency specialists to help the club prepare for administration.
Leeds, who have until Monday to find fresh investment or face administration, have yet to receive a formal approach for Viduka but the board is aware of Boro's interest. Leeds will seek £5m for the striker, who is in Australia visiting his sick father.

Despite public assurances from Leeds's acting chairman Trevor Birch that he would not sell players, they may be forced to cash in on the 28-year-old Australian international.

The goalkeeper Paul Robinson is also available for a reduced price and is being hawked around Premiership clubs. Manchester City turned down the offer before signing David James this week.

Middlesbrough's difficulty, having had no encouragement from Emile Heskey at Liverpool, will surely come in trying to persuade Viduka to move the short distance north when bigger clubs are interested.

Newcastle are also after a striker. According to some at St James' Park they would struggle to raise the £5m required for Viduka, but there are contradictory noises emanating from Newcastle about their buying power.

Sir Bobby Robson, commenting yesterday on a reported £2m bid for Smith, said: "All I can tell you is that I don't know anything about that." A senior figure at Leeds also denied there had been a bid.

But Smith is coveted by Newcastle. He could partner Alan Shearer and might be his eventual successor. Jermain Defoe of West Ham is another player they admire.

Birch, meanwhile, has held talks with qualified insolvency practitioners from a highly regarded Manchester-based firm of solicitors, George Davies & Co, which advises the Professional Footballers' Association on clubs on the brink of financial meltdown.

Since the collapse of ITV Digital the same lawyers have worked with the likes of Notts County, York City, Darlington and Port Vale, but the case of Leeds is unique because of the immensity of their debt - £82m and rising - and the scale of the players' salaries. Whereas a lower-league club that had gone into administration could turn to the PFA for help in meeting their wage bills, the players' union does not have the financial means to bail out Leeds, where players such as Viduka are on £65,000-a-week contracts.

Time is running out for Birch and his beleaguered colleagues to bring in a buyer for the club before Monday's standstill agreement with their main creditors, a date that has been circled in red on every calendar at Elland Road as the cut-off point for keeping the administrators at bay.

The Leeds players have been briefed to expect the worst and they will probably be asked to defer their wages - effectively an interest-free loan with a risk attached.

The PFA's lawyers have dealt with similar cases, albeit on a smaller scale, at Bradford City, Leicester City, Barnsley, Ipswich Town, Huddersfield Town, Watford, Derby County and Coventry City over the past two seasons. In those cases it has been their task to offer advice to the players and conduct a financial review so that if the PFA does lend financial support it can be sure that it will get its money back eventually.

If Leeds do fall into the hands of the administrators, the Premier League is expected to call an emergency general meeting to discuss the situation and the 19 other clubs could be asked to vote on United's future. It is unlikely any decision on the club's future would be made until the end of the season.

The Premier League chairmen are expected to agree a points deduction for any top-flight club going into administration, but the rule change will not take effect until next season. The chairmen meet on January 29 to vote on the issue.

The Premier League's direc tor of legal services Simon Johnson is already preparing the groundwork for the rule change. But it is expected that a degree of flexibility will be included in any sanction rather than the strict nine-point deduction that will apply in the Football League from next season.

 

[Shinboners]

where players such as Viduka are on £65,000-a-week contracts.

This could be the reason why Fergie doesn't seem to want to sign Viduka.

65,000 quid a week is an awful lot to pay for a striker that will be a backup to RVN.

 

[moomba]

It has been reported that the Sheik is very near buying the club for £20m and that he will make £15m available for new players.

It will be interesting to see if the deal can be sorted before the transfer window closes, but it could be a potentially significant development.

This was from the Mirror, other papers are reporting that there is no deal in sight.

Moomba

 

[Catman]

Originally posted by dyertribe
So much for all the 'Alan Smith would never leave' w@nk we kept hearing.

And has he gone yet?

Who's to say he is leaving, regardless of the situation?

He is Leeds through and through and I couldn't imagine him playing for another club.