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leagues, and there were some cases of relegated clubs declaring bankruptcy or dissolving
entirely. Though it has largely been smaller clubs that have suffered this fate, there are
examples of big, well-funded clubs such as Newcastle United and Leeds United that
suffered relegation. Leeds United especially had an historic downfall that nearly led to
the collapse of the club.
Leeds United provides a remarkable example of the potential disasters that come
with relegation. Leeds United were a team that challenged for the Premier League a
couple times in the 1990s, and built a highly competitive team in the late 1990s and early
2000s. They even reached the semi-final of the UEFA Champions League in 2001, losing
to eventual runners-up Valencia.
Within the next couple of seasons the club could no
longer avoid the massive debt they had incurred, and they were forced to sell star players
such as Rio Ferdinand, Jonathan Woodgate, and Robbie Keane.
Leeds United were
relegated from the Premier League at the end of the 2003/04 season, finishing in
nineteenth place. Three years later, they finished bottom of the Championship division,
and were relegated to League 1, the third tier of English league football. The club were
penalized fifteen league points for the 2006/07, and their lackluster squad failed to make
up the ground.
In just six seasons, a club that was a challenger for the highest honor in
“Leeds’ luck finally runs out in Valencia,” BBC, May 8, 2001.
.http://news.bbc.co.uk/sport2/hi/football/champions_league/1317114.stm
Tim Rich, “Venables in fury as Leeds agree to sell Ferdinand for £30m,” The Independent, July
22, 2002, https://www.independent.co.uk/sport/football/premier-league/venables-in-fury-as-leeds-agree-to-
sell-ferdinand-for-30m-185235.html (November 6, 2020).
Leeds United’s financial situation was so dire after 2002 that they sold their best players to rival clubs, a
move that rarely happened in the highly competitive English top flight. Rio Ferdinand, one of the best
defenders in the country moved to Manchester United for a then British record fee. He won the Premier
League that first season, and went on to become one of the most decorated players in the club’s history.
“Leeds relegated after entering administration,” The Guardian, May 4, 2007.
https://www.theguardian.com/football/2007/may/04/newsstory.leedsunited1