Leeds United to pay circa £1m to Sport Capital or face Winding-up
June 13 2014
Leeds United FC failed to have their winding up petition dismissed at the High Court on Monday 9 June 2014, where Deputy Registrar Garwood stated: “The club is the author of its own misfortune.”
Leeds United are reportedly set to repay a loan of £950,000 or face winding up by the court; their bank account remains frozen after a high court ruled in favour of Sport Capital. The petition was adjourned until 23 June at the Companies Court by Mr Deputy Registrar Chris Garwood, by which date the club must pay back the amount in full or face being wound up by the ‘usual compulsory (winding up) order’. Leeds also have to pay towards Sport Capital’s legal fees.
Judgment of the Hearing
Leeds United’s legal representative, Rory Brown stated that, there are funds readily available to pay. This is not a ‘can’t pay, won’t pay’ situation. This is a ‘can pay, won’t pay’ situation. However, when Deputy Registrar Garwood gave judgment he said,
“It was “obvious and clear” that the lender was Sport Capital. The club, having received a demand for payment and done nothing about it, was now ‘scratching around’ looking for ways to address the problem. ‘They did not seek to engage with Sport Capital in terms of paying or negotiating for time to pay, or even raising issues as to payment.’ The view was simply taken: we will ignore it. The club is the author of its own misfortune.”
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