Guernsey Press

On this day in 2003 – Leeds avert threat of administration with creditors deal

Leeds ended up being relegated from the Premier League in 2004 and did not return until 2020

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Leeds announced the first stage of a financial restructuring programme and avoided becoming the first Premier League club to go into administration on this day in 2003.

It marked the latest point in the Yorkshire club’s desperate battle to survive after falling from grace and plunging into a series of financial crises that eventually saw the club relegated to the third tier of the English game.

The restructuring programme included a £60million loan that would, in theory, give the club time to find new buyers.

Soccer – League Division One – Leeds United v Newcastle United – Elland Road
Leeds United captain Billy Bremner during the halcyon days of the club (PA Archive)

“The Standstill is the culmination of negotiations between Leeds United and, among others, the providers of £60 million of senior secured notes and Gerling General Insurance Co, the credit insurer of Registered European Football Finance Ltd who is the provider of Leeds United’s football player finance lease arrangements.”

Unfortunately, it was borrowing that had got United into trouble in the first place.

Under chairman Peter Ridsdale, Leeds had taken out large loans against the prospect of the share of the TV rights and sponsorship revenues from Champions League qualification and subsequent progress in the competition.

Preston North End v Manchester City – Carabao Cup – Third Round – Deepdale Stadium
Peter Ridsdale was chairman of Leeds at the time of the 2003 crisis (PA/Images/Richard Sellers)

The first indication that the club was in financial trouble was the sale of Rio Ferdinand to Manchester United for approximately £30m in the summer of 2002.

Ridsdale and manager David O’Leary publicly fell out over the sale and O’Leary was sacked and replaced by former England boss Terry Venables.

Leeds performed woefully under Venables and other players were sold to repay the loans, including Jonathan Woodgate, and, with the team underachieving, Venables was sacked in March 2003 and replaced by Peter Reid.

Ridsdale eventually resigned from the Leeds board and United managed to avoid relegation in the penultimate game of the season, beating Arsenal 3–2 at Highbury with a late strike by Mark Viduka.

It was, however, only a stay of execution as the club continued to be plagued by financial troubles for the next decade.

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