Administrators KPMG kept up their bizarre performance in the Leeds United affair by announcing today they would sell the club to Ken Bates.
KPMG employee and joint administrator Richard Fleming said :
The approved deal represents the best result for creditors in the circumstances and we believe provides the club with the best chance of survival.
With rival bidders Simon Franks and Simon Morris revealing their offer was sixteen and a half million pounds, plus a commitment to invest twenty million pounds over the next two and a half years, Fleming's view on what was the best result for both creditors and the club seems wildly at variance with the likely facts. Conveniently however the matter will be difficult to prove for a while as KPMG has stated the details of the winning bid will not be disclosed for several months. We'll take a punt that Bates will be revealing as little as he has to in the meantime as well.
The Football League Board will be addressing the matter tomorrow, and will have to decide whether to pass the new 'Leeds United' the share that signifies membership of the Football League and allows the club to start the 2007-08 season. Given the chaotic implications if they don't we'd guess the board will take the line of least resistance. There is speculation, however, that they may also insist that a formal CVA is set up. If they do then the whole mess is almost back to square one.
What Her Majesty's Revenue and Customs will decide to do, presuming Bates hasn't suddenly and hugely upped his bid, as they see their money snatched away again, is not yet known.
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