Leeds have been reported to the Football League by Blackpool over an alleged illegal approach for Simon Grayson.
And the Seasiders have vowed to take legal action against their former manager and the Elland Road club.
Grayson, who lives near Skipton, was announced as Leeds’ new manager, despite having 18 months remaining on his contract at Bloomfield Road.
Blackpool refused Leeds permission to speak to the former City loan player and rejected what they described as a “derisory offer of compensation”.
Yet Grayson handed in a letter of resignation on Tuesday and signed a contract with Leeds, provoking the immediate threat of legal action against the 39-year-old and his new employers.
Blackpool chairman Karl Oyston even considered applying for an injunction to prevent Grayson taking charge of Leeds against Leicester on Boxing Day but decided against the plan.
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