As we enter this period, Leeds United lie 6th in the 'Official' League table, 2 point clear of 7th and 15 points behind the Automatic promotion spots, with a game in hand;

Leeds play two crucial games, firstly against Carlise at Elland Road on Saturday, and then away to Huddersfield Town on Tuesday.  Victory in both would lift Leeds Points tally to 70 although a failure to collect any points could of course, see Tranmere reclaiming sixth spot.

Arbitration

On Monday, Leeds begin their formal attempt to overturn the -15 point penalty imposed by the football League at the start of the season at an independant Arbitration hearing.  The hearing is taking place at an unknown location and the exact time of the start and the duration is not fully known, although it is understood the matter will be dealt with over a number of days rather than a few hours.

The Football League rules were clear in that any team entering adminstration should be deducted 10 points.  Leeds went into adminstration last season and were duly docked the points.  The Football League rules also state that no club can exit adminstration and re-join the Football League without a '75% approved CVA (Creditors Voluntary Agreement) in place UNLESS by exception circumstances. In all previous cases of football clubs going into administration, all have been able to secure the required 75% approved CVA.

This is where the dispute lies.  Leeds United did not have 75% approved CVA in place and applied to the Football League (FL) to be allowed to re-enter as they felt they had 'exceptional circumstances'.  The FL agreed and allowed Leeds to re-enter, but then imposed a new penalty of a 15 point deduction.  The appeal by Leeds will be asking the Arbitration Panle to consider such items as;-

• Leeds United DID have a 75% approved CVA in place but it was blocked by 'HMRC' (Taxman).  The Taxman was (and still is) not happy that under Football League rules, ALL Footballing debts must be cleared in full, yet the Taxman is not given any preferrential status.  The move from HMRC saw a delay to proceedings and without being able to provided running costs for the club, the Adminstrator had no option but to sell the club outright in a closed bidding process.

• The Football League rules stated that clubs could re-enter the League with exceptional circumstances. There was no mention of further penalty so either Leeds had exceptional cisrcumstance or they didn't. 

• The Football League validated their decision with a members vote, which allowd many clubs with a personal interest to vote against Leeds United.

One of the first hurdles to overcome will be the letter signed by Leeds united just days before the start of the season agreeing not to appeal agaisnt the decision.  Leds United have already stated that this was signed under duress and should be dismissed.

Outcome

The possible outcomes of Arbitration are not clear.  The three man panel should not, in theory, have the authority to decide on new sanctions for Football League clubs which normally have to vote through rule changes, so reducing the penalty down to 5 or 10 points in unlikely, but is possible if they feel from the evidence presented to them, that another existing rule should be applied.  They could of course uphold the original decision and rule that the Football League has complied within it's own rules and has not broken any laws of the land  - or the penalty could be overturned and Leeds given the 15 points back.

Whilst Arbitration is likely to be the end of proceedings, and both the FL and Leeds United have confirmed to abise by their findings, there could be further action.  There is nothing (legally) to stop  either Leeds Utd or the FL taking further actions and already a number of clubs in League 1 are threatening to take their own action if Leeds Utd receive their points back.

If Leeds are given the 15 points back, and take maximum points from their next two games, plus Swansea fail to get maximum points from thier away trip to Gillingham, they could see themselves perched at the top of League 1 next week - but they could also be down in tenth!

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