Leeds players agree 20 percent cut
LEEDS, England (Reuters) -- Leeds United were handed some much-needed financial breathing space as their players agreed to a wage deferral of more than 20 percent.
The measure will save millions of dollars for the debt-ridden club, who are in negotiations with creditors over a further extension to their standstill agreement which expires on Friday.
The club, who are $145.7 million in debt and bottom of the table, needed to secure at least $9 million to last them until the end of the season.
Failure to do so could lead to administration, a form of creditor protection.
"We had a long discussion with the players -- they are all together and have unanimously agreed to a wage deferral which will go a long way to allowing the club to stay in business for the rest of the season," said Gordon Taylor, head of the players' union (PFA).
"They have been unanimous in accepting a considerable percentage ... it will amount literally to millions."
Rescue bid
This week Leeds have been in negotiations on a rescue bid with a consortium of local businessmen.
Gerald Krasner, representing the consortium, told Reuters it had an "eight figure sum" available to do a deal and the players' wage deferral was a sign of their good faith.
The players, some of whom earn more than $90,000 a week, are the first from a top division club in England to agree to wage deferrals.
"The board understands that this position has been very difficult for the players and this request was made as an absolute last resort," said chief executive Trevor Birch.
"The players' actions demonstrate their commitment and understanding and give Leeds United a massive lift as we look forward towards the rest of the season.
"There are 16 games left for Leeds United to fight for survival in the premier league. The board, employees, players and supporters should now pull together and do whatever they can to achieve this goal."
Character assassination
Midfielder David Batty said on Wednesday a "character assassination campaign" had been waged against the players after they initially refused to agree to a deferral, saying they would do so only as a last resort.
"I was delighted that all the players agreed to this," Taylor said. "Football is a very short career...to defer a large proportion of your wages when you have financial commitments takes some consideration."
The club was helped on Wednesday when it agreed a 1.5 million pound settlement with Manchester United as a final payment for defender Rio Ferdinand.
Earlier on Thursday the Premier League agreed to a nine-point deduction for clubs going into administration as of June 3.
Premier League chief executive Richard Scudamore told Sky Sports: "The clubs feel that if a club does that (goes into administration) it's able to relieve itself of debt, it gives an unfair advantage in some ways in terms of its league position.
"Money plays a big part in where you finish in the league... and the view of the clubs is that if a fellow club overstretches, overspends and gets itself into difficulties, there should be a big disincentive to make sure they don't do that and that is why they have applied a nine-point sanction."
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