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)
fat trish | 15-Apr-2008 10:13 pm
15 points who gives a duck, we're super leeds and we're going up!!!!!!!!!!!!!!!!!
is there a possibility that they could be given damages as well as the 15 points back?
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Shinpad@606 Rebels | 17-Apr-2008 2:15 pm
Response to Nigel D Heness
You really should get up to date. The FL changed the rules about dates of going into administration months ago, that is why Luton and Bournemouth did it when they did. At the time Leeds acted within the rules. Are they guilty of sharp practice? Probably. Breaking the rules? No. KPMG, the FL and HMRC were pulling the strings during the close season and it is there lack of compromise that caused the CVAs to be dismissed. Interesting that HMRC stopped their legal action when the FL issued the golden share. If that's not evidence of politically driven action I don't know what is.
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David John Southwell | 17-Apr-2008 7:51 pm
Leeds 15 pt deduction
As a Leeds fan for over 50 years I dearly hope Leeds get justice at the hearing. But the omens are not good,delaying the decision until after the playoffs seems to me be a cynical attempt to prevent Leeds taking part in them and preventing Leeds been promoted to the championship.
Any points given back to Leeds after the season is finished and promotion decided would of course be pointless(forgive the pun) and a insult to the injury already received at the the FL who for as long as I remember (50 years plus) have been Ant-Leeds
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Greg Welden | 18-Apr-2008 0:37 am
Australian Perspective
As an Australian Leeds fan and a lawyer I can say that I am dissappointed by the whole process BUT...lets look at the big picture - minus 15 at the start of the season and now (on our own merits) in playoff contention. How awesome. The best way to fight back is on the pitch. Win promotion the old fashioned way and once in the Championship stick 2 fingers up to everyone else.
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F Duck | 19-Apr-2008 0:02 am
Wilberforce kicks off Leeds arbitration against Football League
I am a Donny Rovers fan so have a lot to lose should Leeds get their 15 points back. Leeds should not have had the points deducted in the first place. They got a 10 point penalty for going into receivership. OK they clearly timed things so the 10 point penalty was irrelevant but this was within the FL rules at the time.
Put bluntly, they made idiots of the football league. Now the FL were a little miffed at this and so were looking for a way to slap Leeds with a relevant punishment. They found their "Excuse" in the manner described by the article. Now they are in it up to nasal level because cuddly Ken isn't having it. Unfortunately the FL have procrastinated so much as to make it an issue for other teams. If this had been settled in January, there would still be 1/2 a season for other clubs to react to Leeds' new points total (if they were successful). Now whatever happens is unfair to either Donny and Carlisle or Leeds. A partial return of the points would seem the least unfair to all concerned. The shame is that we must talk about "Least Unfair" and not "Fairest". Blame the FL.... Leeds compained from day 1, the FL procrastinated.
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Paul | 23-Apr-2008 2:54 pm
Thanks F Duck
It's good to see some objective views from people even though their team is in amongst all this end of season points mess. It's entirely down to the FL because they ought to have followed their own procedures & rules. I'll explain:- In the FL's rule book is a rule covering arbitration proceedures. This states that when arbitration is requested regarding removal of points, those points are RETURNED to the club affected until such time as the arbitration result is heard. If the FL had done this last August, all of the other clubs would now be thinking "maybe we'll get a BONUS of Leeds being docked points" rather than the sorry state of affairs where they are worried about Leeds being given points back. I know it's only a different perspective on the same situation at the end of the day, but surely they should have returned the points in good time. Their rules are there for a reason - it seems they missed a golden opportunity to keep everybody happy!
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Pascal | 28-Apr-2008 11:45 pm
Before may 1st
I believe that they will publish the 'results' before saturday. Maybe tomorrow. I do feel sorry for Doncaster, but face it, they knew there was an appeal all along. Plus, if you look at the TABLE it shows Leeds won 26, drawn 10 = 88 points.
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Anonymous | 30-Apr-2008 11:01 am
John Ryan should pipe down.
The Doncaster chairman keeps embarrassing himself in the press with his lack of understanding of the law.
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