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Originally Posted by Evertonscouser
I think this is what happened.
Leeds went into administration to try and clear some debt. Football league rules say any team that goes into administration will automatically recieve a 15 point penalty. Leeds took the decision to go into administration with one game left of the season, when they were already relegated. Instead of the punnishment being worthless, as Leeds couldn't stay up anyway, they have gave them it this season.
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This isn't to do directly with the administration punishment, as far as I'm aware; they had the 10 deducted at the end of last year just before their last game (which they needed to win 9-0 and hope other results went their way) which was a loophole but not strictly wrong as they weren't technically relegated.
Bates taking over the club and transferring it to Leeds United 2007 Ltd is the cause of this issue; each club is given a 'golden share'; basically the right to be in the league. The old Leeds United (before Bates' tinkering and legal stuff) had the share; the new on didn't and therefore they ddi not have the right to play in the league for 07/08 until the League was satisfied the takeover was legit.
I'm not entirely sure what the basis for the deduction was, but it's not a direct re-application of last year's punishment. For a start it's 5 points more than the standard for going into administration. It's to do with whatever Bates did, finding legal loopholes to reduce the debt and buy the club back from the administrators relatively cheaply.