Leeds United Message Board
Ken Bates’ detractors believe that, for five years, Bates has sabotaged Leeds’ chances of returning to the EPL to avoid repaying debts to creditors, due under the 2007 administration CVA ruling about Leeds returns to the Premiership in five years.
In defence of Ken Bates, his supporters cite: “Bates altered his offer to ensure it was not challenged. He altered the clause stating that if Leeds made the Premiership in five years then the creditors would receive an extra 30p in the pound, extending this period to 10 years, and increased the amount they would receive from 1p in the pound to 8p in the pound straight away”
On the face of it, Bates extending the period to 10 years seems to give his supporters ammunition against his detractors. However, that view does not take account of monies owed to HMR&C, which were dependant on the five year clause and made up the major part of the debt.
When Bates bought Leeds, and then took it into administration, he bumped its debt up to £35m – this included £17.7m owed to offshore companies that were prepared to waive their debt if Bates was given control of the club…
As Leeds’ debt was £35M, at 8p in the £, creditors would have been paid £2.8M. If Leeds returned to the Premiership then, at 30p in the £, creditors would receive £10.5M – minus, presumably, the £2.8M already paid – so £7.7M.
But, and this is critical, £7.1M was owed to HMR&C and that is what times out in 2013.
Now, Bates’ Leeds will have to fork-out only a tiny fraction of the £35M the club owed in 2007 – though, one suspects, the anonymous offshore creditors will have been ‘thanked’ generously for their support in ensuring Bates’ control of Leeds United!
In 2013, Bates will be free to capitalise on his ‘investment’, spend on the team, take Leeds back to the EPL, and make another fortune.
If, with long overdue investment, Leeds returns to the Promised Land, all Leeds fans will celebrate. Bates will, once again, be the big Saviour of Leeds; the years of malfeasance will be forgotten… except by all the small business people, charities, taxpayers, and fans he has ripped-off in the process.
Another brilliant deduction Andy, old Sherlock would be proud of you.Spider Bates and his web of deceit eh.. As for being the saviour when he finally "croaks" and rises from the dead then I 'll believe it. Having said that he would probably attempt to "bribe the Styx ferryman " to row against the current,slippery sod!
Bet 365 game on.
- 1 Reply to Tom
The crowd was below 20k today and with the breakeven 23k (which was 25k Ken changed his mind when we were not hitting 25k) I think this could be why Old Ken may want to sell, his profits are dwindling fast PLEASE SELL UP KEN! So it's either sell or invest I think it could be a win win situation now!
Looking at the accounts I liked the anonymous individuals who put 100k in guaranteeing 125k back, now thats a good ISA, wish I had 100k to invest cos that's a buddy good payout!
I wonder who these anonymous investors are?
Why is everything so secretive at Leeds?
I still think Bates is on his way out after he gets as much as he can out of the club, he will in my eyes NEVER be the saviour as other investors were about, WE HAVE PAID PREMIERSHIP PRICES SO NOW IS THE TIME TO DELIVER..... WE SHALL SEE......
- 1 Reply to Lottolee
It is a fair assumption that anyone who hides their dealings in annonymous offshore accounts is a crook. What pisses me off is the reluctance of authorities (government and FA) to even attempt to bring crooks like Bates to justice. It seems like they are all in it together!
Bates, because of his arrogance, is sailing too close to the wind for many of his mates in the kaballa to stand by him. He may be forced to sell Leeds before he blows the whole shady business apart.