Wilberforce kicks off Leeds arbitration against Football League
Commercial and chancery set Wilberforce Chambers will tomorrow (16 April) kick-off arbitration proceedings for Leeds United FC against the Football League.
The football club is contesting the league’s decisions to dock Leeds an unprecedented 15 points for failing to follow the competition's insolvency rules when it came out of administration.
The points losses came after Leeds had already been hit by an automatic 10-point deduction for going into administration, which led to the club dropping from the Championship to League One.
The league is expected to argue that it imposed the additional penalty because it believed Leeds had breached its rules by selling the club to a new company without a company voluntary arrangement (CVA) in place with its creditors.
This would mean Leeds had no binding agreements with its creditors detailing how the company's debts and liabilities would be dealt with.
However the league did allow the transfer of the golden share - a nominal share that is able to outvote all other shares - to the new company, which has allowed the club to play this season.
It is believed that Leeds United will argue that as a result of this authorisation the additional points penalty on the new company is not compliant with company law.
Both parties have agreed that the dispute will be settled by arbitration, following an initial hearing in the High Court.
Tomorrow’s arbitration proceedings are entirely confidential and all parties have declined to comment. The hearing is expected to last three days, with a ruling being given before the end of the football season in May.
David Phillips QC and Nikki Singla, both of Wilberforce Chambers, have been instructed by sole practitioner and Leeds director Mark Taylor for the football club.
Bird & Bird partner Jonathan Taylor will represent the Football League, having instructed lead counsel Stephen Davies of Bristol-based Guildhall Chambers with Adam Lewis of Blackstone Chambers.
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Readers' comments (18)
Anonymous | 15-Apr-2008 1:55 pm
Is the date of ruling accurate?
Given the impact that the loss of 15 points has had on Leeds United's position in the League One football table, I would have expected that the ruling would be necessary prior to the end of the season (final scheduled fixture is 3rd May 2008).
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Anonymous | 15-Apr-2008 2:13 pm
End OF MAY !!!!
This cant be correct. Ruling not known until the end of May?! The season ends on May 3rd! Makes a mockery of the whole process.
If it's true, it proves Leeds have been totally stitched up!
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Phil thomas | 15-Apr-2008 3:16 pm
Leeds and Football league
I believed Leeds were already condemned to Division 1 prior to the deduction of 10 points. As I recall this was a cynical attempt to avoid the loss of the 10 points in the 2007-08 season.
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Anonymous | 15-Apr-2008 5:31 pm
Leeds united and football league
End of the day we hadn't been relegated and so we did receive the 10 point deduction and therefore got relegated. Theres no law against cynicism.
The fact that the judgment is being made after the end of the play offs is a joke and proves this is not being taken seriously!
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Stephen | 15-Apr-2008 5:34 pm
Leeds
it doesn't say end of may!!!
it says before the end of the season
some people need to learn to read
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noneofthatlot | 15-Apr-2008 6:35 pm
Leeds United Arbitration
Relax Leeds fans... the article says "before the end of the football season in May". We were already told it should be before the Millwall match, but I wouldn't be surprised if it was a bit later. However, it MUST be before the seasons end... ie May 3rd
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Anonymous | 15-Apr-2008 8:48 pm
Phil Thomas
Leeds were not relegated prior to their going into administrationin 2007.
This is factually incorrect. Nothing cynical about it, it was pretty much standard practice in every football administration to date.
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Ash Langley | 15-Apr-2008 9:23 pm
-15 Points
This is a disgrace to leeds united!!! Why do you dock us 15 points in the first place but then to have the hearing so late on in the season!!!!!!!
Whats that all about !!!!!!!!
Come On Leeds!!!!!!!
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Nigel D Heness | 15-Apr-2008 9:24 pm
Deduction of Points
If Leeds do get some points back there should only be a maximum of 5 as they should have been deducted 10 points this season and not last season for going into administration.
They deliberately went into administration after it was confirmed that they were relegated.
The league clearly need to look at a way of deducting points the season after a club goes into administration as this would be fairer on all parties and would allow more time to reorganise afairs off the pitch.
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Anonymous | 15-Apr-2008 10:03 pm
Farce.....nothing more than I expected
If Leeds are stitched up by there being no ruling until the end of May, then I hope Ken bates sues the Football League.....that is, should we not gain promotion to the championship directly because of the 15 point penalty imposed.
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