I may be wrong but I think Leeds United are the victim of a battle between the football league(not the FA) and HMRC (the tax man).
Until September 2003 the HMRC were a preferred creditor thus businesses that went into administration paid the HMRC first. Only then was the CVA organised by the remaining creditors therefore from a football point of view, the Football League’s insistance that it is preferable that clubs coming out of adminstration pay football debts in full and obtain a CVA did not conflict with insolvency laws. Now they do, and that is the problem. The FL still demand their debts are paid in full but since HMRC are no longer a preferred creditor they are not prepared to allow football debts to be paid in full whilst they have to accept whatever % is available from a CVA. It is not just LUFC, but ALL clubs that attempt to come out of administration that will incur this penalty unless the decision is overturned this week. Luton and Bournemouth will suffer the same fate.

Isn’t this the biggest rip you’ve seen??

Got this in the company mail today:

Dear Valued Employee:

As you know, President Obama has asked Congress to pass the beginning of his health insurance plan for all Americans. The starting plan will cost some billion a year, of which the President has proposed billion in higher taxes for firms doing business overseas, which is half our company’s business. He asked Congress to find the rest of the money.

Congress has said the other billion a year will come from disallowing corporate tax deductions for employee health insurance, as well as raising the general corporate income tax rate to 35%.

The company will absorb the higher taxes on our foreign operations and the tax increase to 35% even though we expect this to eliminate our currently low net income.

Our corporation pays approximately ,000 per year per single employee and ,000 per year per employee family for the health insurance coverage you presently have.

This means that Congress has decided to raise our taxes by 00 per employee with single coverage and 50 per employee with family coverage.

As you know, our company’s sales have recently fallen by more than at any previous time in our company’s history. Our company is paying no dividends to the owners and may soon be in danger of not earning the interest cost of our debts.

Accordingly, we must pass onto our employees the entire added tax that Congress will impose on your health insurance plan. It is either this, go out of business, or move operations and most jobs overseas.

Effective the first of next month, all US employees electing single coverage health insurance will have their monthly contribution increased by 175 dollars and those electing family coverage will contribute an added 262.50. For hourly employees paid every two weeks, this is .75 and 1.15 respectively.

Thank you for your continued efforts to make the company profitable,

Human Resources Department