Chairman Ken Bates tonight defended Leeds’ decision to make Simon Grayson their manager and scoffed at Blackpool’s threat to take legal action.

Blackpool refused Grayson permission to talk to Leeds and then rejected his resignation but United announced him as their new boss anyway.

Bates said: “We approached Blackpool for permission to speak to Grayson and they refused, which would have been the end of it. Then they told Grayson they had received an approach from us. Simon thought it was a dream job and jumped at it.

“Blackpool put this information on their website, so it was in the public domain. Up to then we had said nothing. Once Blackpool made it public we felt we had the right to approach them again, which we did.

“Meanwhile, Grayson had gone in to see their chairman and they had a bit of a disagreement because he felt he had done a good job at Blackpool, wanted this opportunity and thought Blackpool should not stand in his way.

“After that altercation he resigned, which he was entitled to do, and he became a free agent. Knowing that, we offered him the job at Leeds and he took it.

“It is down to Blackpool whether they want to take the matter any further. Their chairman said he didn’t want to talk to our chief executive Shaun Harvey. He wanted to talk to me but all I could get was his answer-phone.

“We have also sent him texts, so he cannot complain that we have not tried to meet his requirements, chairman to chairman. I cannot do any more, so the ball is in his court.”

Ripon-born Grayson’s arrival has been widely welcomed on this side of the Pennines but, with Leeds five points behind a play-off place, he knows instant results are needed if promotion is to be achieved in his first season in charge.

Grayson, who began his career at Elland Road, said: “It has been a whirlwind time for me. The ambition and size of the club were the major attractions.

“I enjoyed my time at Blackpool and would not have dropped down a division to go to any other club.

“I know what is expected – to get this club out of this division and back to where it should be – and I am relishing the challenge.

“I was fortunate at Blackpool to get them out of this division. We won our last ten matches of the season and went up through the play-offs, so I know what is required.

“I know a lot of the players and teams in this division and the group of players we have at this moment are more than capable of doing that.

“They have to be fully focussed on the training pitch and during matches to try and achieve that aim.”

The Boxing Day game at home to League One leaders Leicester – another of Grayson’s former clubs – sees United’s new manager thrown in at the deep end as he looks to revive the fortunes of the club he supported as a child.

United legend Eddie Gray, who signed Grayson for Leeds on schoolboy forms, welcomed his return as manager.

Gray said: “It is a good appointment and a quick one. Simon will take a close look at the players before the transfer window opens.

“He has proved himself as an up-and-coming manager at Blackpool so hopefully he can get the team back on track.

“There are some important games coming up and we have to get back among the promotion pack.

“Simon doesn’t have a lot of time because people expect instant success and are looking for him to get the club out of this division as quickly as possible.”

Grayson, whose brother is former Yorkshire and England cricketer Paul Grayson, won the League Cup with Leicester in 1997 and also played for Aston Villa and Blackburn.

He had loan spells at several clubs, including Bradford City and Sheffield Wednesday, before joining Blackpool on a free transfer in July 2002.

He became caretaker-manager in November 2005 and was made manager for the 2006-7 season, winning promotion to the Championship through the play-offs.