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Next Game: Scarborough In The League At Edgar Street On Tuesday 19th November At 7.45pm

Wednesday, May 07, 2008

Mawhinney warns Clubs after Leeds Appeal

The chairman of the Football League Lord Mawhinney has written to all the clubs in the Football League warning them to live within their means. The letter was sent out after Leeds lost an appeal against a points deduction last week.

"Clubs which do not pay PAYE and NIC relating to their players are, in effect, spending more than they can afford on players," wrote Mawhinney

"As a result, those clubs that live within their means are at a competitive disadvantage. While discussions with HMRC will continue, our focus should be on ensuring that all clubs meet their obligations to HMRC as and when they fall due.

"Despite the fact that the Football League board's actions and decisions were overwhelmingly upheld by the arbitration panel, and in doing so Leeds United were also ordered to pay the costs incurred by the Football League in defending its actions, certain criticisms continue to be made of the board and it is only right that these are addressed."

Leeds were docked the points after failing to secure a company voluntary agreement because HM Revenue and Customs (HMRC) refused to accept their offer on £7.7million owed in tax and national insurance.

There is an excellent article in today's Guardian written by David Conn that looks at the Leeds appeal and why it failed.