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Radio debt was crucial to Leeds United
A £480,000 debt owed by Leeds United to Yorkshire Radio helped approve the resale of the club to Ken Bates earlier this month.
The debt, which was not declared in the original list of creditors drawn up by KPMG but was approved by Leeds' administrators in time for the creditors' vote on June 1, helped to pass Bates' bid to buy back United by a slender margin.
Yorkshire Radio's debt represented around 1.3 per cent of the total liabilities facing Leeds, who were placed in administration with debts of more than 35million on May 4.
The broadcaster is understood to have cast its vote in favour of Bates and Leeds United Football Club Limited.
The resale to Bates by KPMG was approved after a recount with a majority of 75.20 per cent of the vote, and the support of Yorkshire Radio helped prevent a rejection of the Company Voluntary Arrangement (CVA) drawn up by Leeds United Football Club Limited.
Yorkshire Radio, which provided live coverage of all United's fixtures last season, was launched by Bates in 2006 using equipment purchased from his former club Chelsea. He said at the time that no club funds had been used to establish the station.
Companies House lists the Elland Road chairman as one of Yorkshire Radio's directors, along with club director Mark Taylor. Both men are also directors of Leeds United Football Club Limited, the company which will officially gain control of United next week provided a legal challenge against the CVA is not mounted before Tuesday, July 3.
KPMG have not commented specifically on their decision to approve Yorkshire Radio's debt after the initial list of creditors had been drawn up, but said it related to the contract held between United and the station.
A spokesman for the administrator also confirmed that KPMG had taken legal counsel over the final debts attributed to all individual creditors before the vote at the beginning of this month.
The issue of Yorkshire Radio's debt was raised yesterday during a meeting of three Yorkshire MPs – Colin Burgon, George Mudie and Phil Willis – with officials from the treasury. Sports minister Richard Caborn was also present.
United today declined to comment.
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Thursday 24 May 2012
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