ENGLAND: SOCCER - DEBT LADEN PREMIERSHIP FOOTBALL CLUB LEEDS UNITED AGREE WITH CREDITORS TO A ONE WEEK EXTENSION TO FIND FUNDING.

Record ID: 858780

  • Title: ENGLAND: SOCCER - DEBT LADEN PREMIERSHIP FOOTBALL CLUB LEEDS UNITED AGREE WITH CREDITORS TO A ONE WEEK EXTENSION TO FIND FUNDING.
  • Date: 18th January 2004
  • Summary: (REUTERS ) FORMER LEEDS CHAIRMAN PETER RIDSDALE GETS OFF TEAM COACH IN ISTANBUL
  • Embargoed: 2nd February 2004 12:00
  • Keywords:
  • Location: VARIOUS LOCATIONS, UK, ITALY, CHINA, TURKEY
  • City:
  • Country: Turkey China Italy United Kingdom
  • Topics: General,Sports
  • Reuters ID: LVAE3Z8TQVYVA9J2E7S615B5UYY2
  • Aspect Ratio:
  • Story Text: Leeds United have staved off the immediate threat of
    administration.



    Debt-laden premier league club Leeds United have
    staved off the immediate threat of administration after
    agreeing on Monday (January 19) with creditors to a
    one-week extension to find funding.

    "It's just one week's extension. We hope it's enough
    for the chief executive to try and come up with some money.

    That's all we've been given. We'll be working hard to raise
    that money," spokesman Don Waters said.

    He would not say how the club intended to raise the
    necessary funds.

    The Yorkshire club, facing relegation after dropping to
    the bottom of the premier league at the weekend, had until
    Monday to reach a deal with its creditors, who are owed
    some 80 million pounds ($145 million).

    Earlier in the day Leeds United shares dived as
    investors waited to hear whether the club had won the
    extension.

    If no new deal is secured Leeds could become the first
    premier league club to go into administration.

    An extension would give Leeds more time to sell players
    in the January transfer window with strikers Mark Viduka
    and Alan Smith and goalkeeper Paul Robinson being linked
    with moves away.

    However, much depends on whether Leeds can stay in the
    lucrative premier league, whose 20 clubs share a
    billion-pound deal with broadcasters BSkyB, and the club
    recognises that it needs to keep its best players to
    achieve this.

    It has already been weakened after selling a number of
    first choice players including strikers Harry Kewell,
    Robbie Keane and Robbie Fowler and defender Jonathan
    Woodgate, in a bid to cut costs and won just four out of 22
    league games this season.

    "The number one option is to survive in the
    premiership, if we can do that at the end of the season we
    have a different proposition to put to people," said chief
    executive Trevor Birch.

    "It's all about survival, that's what we need to secure
    our future."
    Leeds slipped to the bottom of England's top flight on
    Saturday after losing 2-1 at Southampton, while fellow
    strugglers Wolverhampton Wanderers beat champions
    Manchester United to move above the Yorkshire club on the
    table.

    If the club is relegated it would have to manage with a
    significant drop in income, making it a less attractive
    proposition to potential investors.

    Sheikh Abdulrahman bin Mubarak al-Khalifa, a member of
    Bahrain's royal family, and Chinese businessman Xu Ming
    have been reported as interested in investing in the club.

    The club's former chairman and deputy chairman, John
    McKenzie and Allan Leighton, have also been exploring
    possible rescue deals.

    Shareholders have been particularly critical of
    McKenzie, who took over as chairman from Peter Ridsdale in
    April 2003.

    Ridsdale has taken much of the blame for clubs
    financial crisis.
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