Leeds face FA investigation into possible breach of ticket rules
19/07/2007 |
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Football Association officials have written to Leeds United asking for clarification over what may be a breach of its rules governing ticket sales. The administrator, KPMG, signed over the right to sell season tickets at Elland Road to the Leeds United 2007 consortium led by Ken Bates. This was done despite no Football League approvals having been received for Bates's purchase of the club.
Until league approvals are granted it is the old club - in administration - and not Leeds United 2007 that will compete in next season's League One. The FA wants to know how the handover of rights to season-ticket sales cannot be a breach of financial-records rules.
FA rules state: "When a club charges admission to a match, it is necessary for that club to have a system that enables them to record the full gate receipts for each match [and to] account for the full gate receipts in the club's accounting records and bank account."
KPMG confirmed that bank accounts for Bates's new company had received the income. "Season-ticket money is with the new co; the old co never collected any season-ticket money," said a spokesman. "In the event that the club is not able to start the 2007-8 season [Bates's company] will ensure monies are returned to supporters." The spokesman could not explain why KPMG had handed over season-ticket income to Bates's company but stated that a letter to creditors would be circulated next week offering "complete transparency" over KPMG's handling of the administration.
With potentially millions of pounds of revenue available from season-ticket sales, it is hard to see why KPMG's Richard Fleming, in a letter to the MP for Elmet, Colin Burgon, suggested there was a "risk of the club ceasing to exist, as a result of no funds being available to fund trading".
Simon Franks, whose Redbus Group venture-capital firm twice unsuccessfully competed with Bates to take over Leeds, stated that the uncertainty over season-ticket money had forced him to reduce his offer to creditors. A Leeds United 2007 director was unavailable last night.
(Source: Guardian.co.uk)
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