Leeds relegated and reborn
Crisis club Leeds United have called in administrators who have immediately sold it back to former chairman Ken Bates.
The move means that the stricken Championship club, who were on the verge of relegation to League One have now been relegated immediately because under Football League rules administration incurs a instant ten-point penalty.
A statement from administrators, KPMG, revealed the club had debts "totalling approximately £35 million, with a cash injection of approximately £10 million required to continue trading".
Customs recently issued a winding-up petition for approximately £5 million, and it was revealed that if this debt had not been paid by June 25 the club may have been forced into liquidation.
The statement added: "The administrators understand from discussions with the Football League that the administration will result in the immediate deduction of 10 points from the club's current points total in this year's Championship.
"This means that next season the club will start the campaign in League One with no points deducted."
© Independent Television News Limited 2007. All rights reserved.
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