Ex-Iron was `mortgaged` by Leicester City

Last updated : 12 March 2003 By Luke Thornhill

In a move which could further complicate the transfer market Leicester borrowed millions of pounds using Elliott, as well as midfielder Matthew Jones and forward Jamie Scowcroft, as security.

Leicester owed German insurance company Gerling £4.2million, although the Gary Lineker-headed consortium which has took over the recent running of the Foxes has not taken on the debt and will pay back 10% of what is owed, rising to 40% if they win promotion.

Very few professional clubs have borrowed money against players, and officials are warning that this is a dangerous precedent and if repeated could leave clubs in even deeper financial troubles if the transfer market suddenly drops.

PFA Chairman Gordon Taylor said: "It is a very dangerous scheme because you are effectively selling off your assetts.

"The registration of the player remains with the club but in reality it belongs to someone else and this can cause a lot of confusion."

Elliott moved to Glanford Park in 1992 from Torquay United, making his debut in the home win against Chesterfield.

He played 74 times for United and netted eight league goals, before moving onto Oxford in November 1993.