The Sunday Times reported last weekend:
‘Fraud investigators are to launch a criminal inquiry into one of Britain’s most famous football clubs over multi-million-pound transfer deals involving England stars. The Serious Fraud Office (SFO) and West Yorkshire police are to investigate the circumstances surrounding the financial collapse of Leeds United including the transfers of Rio Ferdinand and Robbie Fowler to rival clubs.
‘The move by the SFO follows a confidential inquiry by the Department of Trade and Industry (DTI) into the running of the club up to March 2003. The DTI has spent six months studying a report by Brendan Guilfoyle, a top insolvency specialist, on the running of the club.
‘The Sunday Times has learnt that last month Patricia Hewitt, the trade secretary, agreed to a request by her officials to refer the matter to the SFO and the police. Whitehall sources said the SFO had now approved a full-scale inquiry.
‘One of the deals to be studied is the £18m purchase of Rio Ferdinand, the England centreback, from West Ham in 2000. The transfer was previously the subject of an internal inquiry by the club. Ridsdale was cleared of any wrongdoing when he authorised a £900,000 payment to Rune Hauge, the disgraced agent involved in the bung scandal that engulfed George Graham, the Arsenal manager. Ferdinand became the country’s most expensive player when he was sold to Manchester United for £30m two years later.
‘Another key deal was the £11m purchase of Fowler from Liverpool at a time when the club was heavily in debt. Fowler was later sold for £6m to Manchester City. However, under the terms of his contract, Leeds continued to pay his £500,000-a-year salary.’