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Grayson's return to Elland Road where he began his career followed speculation yesterday when bookies suspended betting after becomming aware of large sums of money being placed on the Seasider manager whose odds changed dramatically from 9/1 to 1/20.
Despite his attendance with first team players at the club shop on Monday to sign fans merchandise informed sources yesterday revealed that Leeds would be announcing Grayson as the new Leeds Manager this lunchtime,
Grayson initially refused to deny rumours but added he was flattered by the ongoing speculation however, he was later noticeably absent from the traditional Christmas staff night out.
The club's first announcement confirmed that they had refused permission for Leeds United to talk to Grayson. Nevertheless with 18 months still to run on his contract Simon tendered his resignation at 8.30am this morning. He also added that he wanted to join Leeds.
Without any official response from the Seasiders, fans and press took the view that it was only a mere formality that his departure would be confirmed by Leeds when they announced him as there new boss at lunctime.
Leeds duly went ahead and made this announcement but only via the official website no press conference being called at Elland Road as none of the parties were available.
Again it was assumed that suitable compensation must have been offered after Blackpool's reluctance to allow Grayson to discuss any terms with Leeds.
Despite Grayson's wishes to retrun to his native Yorkshire and the club where he began his career Blackpool then surprised the media and fans with a furious response stating that
"The resignation was not accepted by the board of directors and the club and are now considering legal action against both Simon Grayson and Leeds United."
Blackpool revealed they are unwilling to release Grayson from his contract and the deal is shrouded in acrimony as both sides are still believed to be in deadlock over any compensation.
Meanwhile although there is no news that assistant manager Tony Parkes and coach Steve Thompson or any other of Grayson's back room staff will join him at Leeds the duo will take training over the next few days and both will be in charge of the Seasiders in their boxing day clash against Sheffield Wednsday.