[LU] Leedslist Digest, Vol 20, Issue 5

[John Boocock]

Tim Leslie wrote:
> Hang on Rick. You'll have to excuse the thickies amongst us. The 15 points
> is NOT a penalty? Then what was it?

Tim it has the effect of a penalty and botyh Leeds and the FL called it 
a penalty but the tribunal disagreed

They looked at the agreement that ken Bates signed up to as being:

".........a commercial bargain, at arms length between a powerful and 
rich Consortium of businessmen and a responsible professional Sports 
Governing Body........."

What Bates did next was to try and twist that bargain to his own 
advantage even after having signed on the dotted line.

When it came to the crunch and Bates and KPMG couldn't meet the FL's 
requirements

............ the Insolvency Policy allowed the Board to agree to 
withdraw the CTN and to register a transfer free of the CTN in 
circumstances, including on such terms as the Board “in its absolute 
discretion determines.”................

That is the rule which the FL were imposing and it will always give the 
FL the final say as it stands because of the phrase in quotes  “in its 
absolute discretion determines.”

and in the statement:

............We conclude that it is inherently improbable that Mr Taylor, 
as a solicitor of longstanding experience, would have put his signature 
to the document if he had intended to reserve the position that it is 
now adopted by the Claimants that the points deduction was outside the 
powers of the Board or was an improper exercise of its 
discretion............

I think we have the nail in the coffin there - the tribunal are saying 
that as a solicitor etc.. they would have expected Taylor to have 
understood what the FL proposal was and to have understood it implicity 
especiially as the alternative was:

...............We are satisfied that if he had attempted to do so, it 
would undoubtedly have been rejected by the Board, the deal would have 
been aborted and, in all probability the Club would have gone into 
liquidation, or at best, been relegated to League 2.............


I could go on.  All I can say though is that the Arbitrators have to 
work to a particular standard and that standard includes objectivity 
something a Football fan or a Football Club owner could never be accused 
of :-)

Betty