Leeds get £1.5m from United
Manchester United have agreed to pay Leeds £1.5million as the final settlement on Rio Ferdinand's transfer to Old Trafford.
Crisis club Leeds, who have until 5pm on Friday to raise £5m to satisfy creditors until the end of the season, have accepted a reduced amount instead of the £3.25m outstanding.
The England defender joined United in July 2002 for an initial £15m and further payment of £14.3m was paid a year later. However United still owed further instalments - dependent on results - which could have seen it top £32.5m.
It means Leeds chief executive Trevor Birch is a step closer to helping the Elland Road club avoid administration.
United announced to the Stock Exchange: " Manchester United has agreed to pay to Leeds United FC, via the FAPL (Premier League), tomorrow £1.5m in full and final settlement of the deferred conditional sums due on the Rio Ferdinand transfer totalling £3.25m."
Ferdinand is currently appealing against an eightmonth ban for missing a drugs test.
The deal means, in effect, that Leeds have given up £1.75million on the transfer which remains a British record fee at £30.75 million.
As he looks for further cash to keep the club afloat, Birch has the option of asking former managers David O'Leary, Terry Venables and Peter Reid to defer severance payments. All three would do so if approached. Leeds could also raise funds by selling Danny Mills to Middlesbrough for around £1m.
Leeds yesterday held further negotiations with a Yorkshire-based consortium who hope to secure a £20million buy-out of the Premiership's bottom club.
Discussions may not be concluded by Friday's already extended deadline, but Birch does have the prospect of another week's grace beyond that, which is likely to be used, particularly after claiming on Monday the talks with the consortium have been "constructive".
It is understood the group's offer for Leeds was officially lodged with the club's lawyers yesterday, along with proof that finances are in place and the potential buyers are credible.
