Leeds trip to Tranmere remains on schedule

Jul 7 2007 by Nick Smith, Liverpool Daily Post

TRANMERE ROVERS’ opening day League One fixture with Leeds United is still set to go ahead despite the uncertainty dogging the Yorkshire club’s future.

A legal battle over the club’s ownership has been put off until September and the Football League’s board will discuss their situation next week. But they are likely to allow Leeds to start the season at Prenton Park despite the looming court case.

There are concerns, however, that Ken Bates’ threat to cease funding the club due to a legal challenge by Her Majesty’s Revenue and Customs (HMRC) could have severe implications.

Leeds are in the hands of administrators KPMG who are legally obliged not to run up any more debt and, if no funding is coming in, to begin to wind the club up.

HMRC, who are owed £7.7million in unpaid tax and VAT, are challenging the resale of Leeds to Bates and Leeds United Football Club Ltd by the administrators and a five-day hearing will take place from September 3.

HMRC launched their challenge on Tuesday against the Company Voluntary Arrangement (CVA) proposed by Leeds United Football Club Ltd and accepted by most of the club’s creditors.

Bates had offered to pay them a total of 8p in the pound, but that was rejected. KPMG barrister Louis Doyle told the court that HMRC’s appeal against the CVA would threaten to prevent United from starting the season.