Leeds United entered voluntary administration on 4 May 2007, thus incurring a 10-point deduction which confirmed the club's relegation to League One.
For his part, Ridsdale denied any of the current situation was his fault,[3] only days after having admitted it was a mistake to allow the then-manager David O'Leary to spend so lavishly on players.
On 6 May 2007, Don Revie's son Duncan announced that he was in the process of forming a consortium to buy the club saying "I've tried to ignore my feelings for a long time as I know the aggravation needed to put things right.
The bid included eventual plans to build a new 50,000 seater stadium as part of a 'world class leisure venue', as well as providing £25million in funds to stabilise the troubled club.
[19] On 1 June 2007, 75.02% of the creditors voted in favour of Ken Bates' bid, however it was so close a recount was scheduled for the following Monday.
The meeting intended to decide the fate of the club was prolonged due to "heated objections" to the sale process and there was some debate on whether one of the four other bids would be better for creditors.
[22] A period of 28 days still hung over the club, to allow any appeal against Bates regaining control to be lodged, and former Leeds director Melvyn Levi has hinted that this could occur.
"[28] Following the challenge by HMRC the club was put up for sale by KPMG, with only offers before 5pm (BST) on Monday 9 July 2007 being accepted.
[34] After an appeal against the 15 point deduction was rejected by both the Football League[35] and the FA,[36] LUFC Limited stated that they would seek legal advice in regards to overturning the penalty imposed.
[38] Leeds eventually served the Football League with a writ for the points deduction challenge to be heard in the high court[39] however on the final day available to respond to the writ the Football League offered Leeds a closed doors arbitration hearing instead.
[40] The panel was made up of Peter Cadman, who had chaired past Premier League disciplinary commissions, Peter Leaver, the former Premier League chief executive, and chaired by Sir Philip Otton a High Court Judge experienced in football legal matters.
[41] Leeds accepted this and after the panel heard both sides of the argument between 16 and 21 April 2008 they eventually returned a decision on 1 May.
[42] The Arbitration Panel released short[permanent dead link] and extended documents detailing the final decision.