The United chief was speaking out following trainee Luke Garbutt's decision to join Everton.

The 16-year-old product of the club's Academy system had been offered a contract to join Leeds as a scholar and a professional, but opted instead to join Everton.

"We are dissatisfied," Bates told Yorkshire Radio.

"We're chasing matter with the Football League and the Premier League and we're seeking substantial compensdation.

"The days of nicking Leeds players and paying peanuts are over.

"We are determined to be adequately compensated for the work we are doing in our Academy."

The chairman also explained the club's decision to release a statement on Thursday, following another day of intense media speculation about Fabian Delph's Elland Road future, announcing that offers received direct from two Premier League clubs had been turned down.

"We decided to go on the front foot and let our fans know instead of reading about it," he said.

"Our response is we have received two bids and they have been rejected."