Leeds United chairman Ken Bates says the club will be seeking "substantial compensation" following Luke Garbutt's decision to join Everton.

The 16-year-old product of the club's Academy system was offered a contract to join Leeds as a scholar and a professional, but he has opted to join Everton.

"We are dissatisfied," the chairman told Yorkshire Radio. 

"We're chasing matter with the Football League and the Premier League and we're seeking substantial compensdation.

"The days of nicking Leeds players and paying peanuts are over.

"We are determined to be adequately compensated for the work we are doing in our Academy."

The chairman also explained the club's decision to release a statement on Thursday, following another day of intense media speculation about Fabian Delph's Elland Road future, announcing that offers received direct from two Premier League clubs had been turned down.

"We decided to go on the front foot and let our fans know instead of reading about it," he said.

"Our response is we have received two bids and they have been rejected."

You can hear more from the Leeds United chairman on Yorkshire Radio at 11am and 5.30pm on Friday...