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Last Updated: Friday, 3 August 2007, 19:19 GMT 20:19 UK
Leeds hit with 15-point penalty
Ken Bates
Bates believes the League One club are now in a good position
Leeds have received permission to play in League One this season after being granted their Football League share but must do so with a 15-point deduction.

The club have appealed against the sanction imposed by the Football League and their case will be heard at a special meeting of all league clubs.

Doubts had been raised over Leeds' future after the club failed to agree a Company Voluntary Arrangement (CVA).

The Football League accepted there were "exceptional circumstances".

But in making their decision, it was stressed they could not allow Leeds to operate outside the strict rules concerning administration.


Leeds are back under the control of Ken Bates after administrators KPMG sold the club to him for an undisclosed sum.

The CVA would have allowed Leeds to pay off an acceptable amount of their debts to creditors.

"The Football League Board agreed that, notwithstanding the manner in which this administration has been conducted, the club should be permitted to continue in the Football League," said a statement.

"Consequently, the board has decided to make use of the 'exceptional circumstances' provision within the League's insolvency policy, for the first time, and agreed to transfer the club's share in The Football League to LeedsUnited 2007 Ltd. Accordingly, the club's share has now been transferred.

"However, it is acknowledged the club did go into administration and has been unable to comply with the terms of the League's well-established insolvency policy.

"As a result, the board determined this transfer of membership should be subject to Leeds United having a 15-point deduction applicable from the beginning of the 2007/08 season.

"Leeds subsequently have lodged an appeal against this sanction, which will be heard at a special meeting of all League clubs, to be arranged in due course."

Football League chairman Lord Mawhinney met with both KPMG and Bates, telling them to change the CVA, which governs how much creditors will get.

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