Leeds lose points penalty appeal
Leeds have lost their appeal against their 15-point deduction for an alleged breach of the Football League's insolvency policy on Thursday.
The chairmen of the other 71 Football League clubs voted "overwhelmingly" to sanction the club and then again to uphold the original punishment.
In both cases, the outcome was higher than a 75% majority vote.
Leeds supremo Ken Bates had insisted his club had not broken any rules but he must now accept the decision.
Bates had sent a letter to all Football league chairmen, arguing argued in his letter that the punishment was a "breach of natural justice".
It was imposed on 4 August, the same day that Leeds were granted their 'golden share' that allowed them to compete in the Football League this coming season.
The share had been suspended when Leeds went into administration at the end of last season, a decision that automatically incurred a 10-point penalty and thus sealed their relegation from the Championship.
The League want clubs coming out of administration to do so via a company voluntary arrangement (CVA) with football creditors paid in full.
Leeds' creditors originally opted for the club to be sold back to Bates via a CVA.
But HM Revenue & Customs, unhappy at the plans of Bates to pull the club out of administration by paying creditors only eight pence in every £1, mounted a legal challenge.
The matter went to a High Court hearing in Leeds. Preliminary hearings were held on 6 July with a date set for the full case to be heard in September - sparking fears the club might not start the season.
Administrators KPMG subsequently put the club up for sale.
Bates then bought the club back off KPMG in a deal that could eventually be worth more than 50p in every £1 for creditors.
But the purchase meant that the club had not come out of administration via a CVA - with the League imposing their subsequent 15-point penalty for the breach of policy.
Football League chairman Lord Mawhinney has written to all the chairmen of the 71 clubs outlining the consequences of not upholding the penalty against Leeds.
A League statement after the penalty was imposed said: "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.
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