Peter Reid yesterday proved the old maxim that football is the only occupation where you can get sacked and end up in a more glamorous job.

While Sunderland contemplate life in the First Division, the man who led them towards the wooden spoon will spend his summer pondering how to re-establish Leeds United among the elite, having finally been given a full-time contract.

Reid, sacked by Sunderland seven months ago, has won over the Elland Road board and silenced much of the scepticism that accompanied the announcement of his short-term appointment. Ten points in seven games since replacing the sacked Terry Venables earned him a rolling 12-month deal, with heavy emphasis on performance-related pay.

However, he still has some work to do before the backing is unanimous. Whereas previous press conferences at Elland Road have been a magnet for the club's fans, Reid's appointment drew a largely apathetic response, with only two autograph hunters turning out to wish him luck.

"You get that scepticism in all walks of life," Reid said. "Some people think you're not bad, others think you're hopeless and there were some people who thought I was hopeless. But the objective was to get the club safe and I've managed that. I wanted the job all along and this is a good day for me."

Reid's priority will be to determine whether Leeds, with debts totalling £78 million, can keep Harry Kewell, Mark Viduka, Alan Smith and Paul Robinson. He believes they need at least two more defenders and an experienced central midfielder, and is investigating whether they can abort the deal that would see Olivier Dacourt join Roma once his loan expires at the end of the Serie A season. The indications, however, suggest that is extremely unlikely.

Leeds chairman John McKenzie said it would be the "last resort" to sell any of the club's so-called crown jewels, but Reid will also be aware the previous chairman, Peter Ridsdale, used that phrase before the transfers of Rio Ferdinand, Lee Bowyer, Robbie Keane, Robbie Fowler and Jonathan Woodgate.

"I've had a chat with the chairman and I'm pleased with what he had to say," Reid said. "I know everything about the finances and I'm going into the job with my eyes open. There will be some wheeling and dealing this summer and I'd like to keep my best players. But it's no use having players who don't want to be here."

Leeds opted for Reid after accepting the chances of luring Martin O'Neill from Celtic or Gordon Strachan from Southampton were non-existent. Paul Hart of Nottingham Forest and Leicester's Micky Adams had made it clear they would take it but a lack of experience counted against them.

John Gregory, meanwhile, is set to add to Derby County's financial worries by exploring every legal avenue available to him in a bid to recover £2 million in compensation after being sacked by the club, who are £31 million in debt. The 48-year-old, suspended seven weeks ago while the club investigated "serious allegations", had two years remaining on his contract.

With any appeal bound to fail, it means Gregory will immediately instruct his lawyers to launch a British High Court action, which will prove to be very expensive. Gregory refused to comment last night.

Martin O'Neill finally agreed to put pen to paper on a one-year rolling contract at Celtic. "I have signed the documents," he said. "But it still won't prevent me from getting the bullet if the results don't go right."

The Celtic manager left a question mark hanging over the future of Neil Lennon yesterday by revealing he would wait until the end of the season before discussing the latest incident involving the midfielder.

The former Northern Ireland international was attacked in Glasgow's West End in the early hours of Thursday morning after helping the Hoops back to the top of the Scottish Premier League with the win over Motherwell.

Lennon has been no stranger to controversy since signing for Celtic and O'Neill did not give the 31-year-old, who still has two years remaining on his contract, his unequivocal backing.

"I've not really had a chance to speak to him," insisted O'Neill. "I've not really made it my business.

"He is pretty upset about it and if you are asking what happens about his future, I would leave it down to the end of the season."

The matter has been reported to Strathclyde Police, who will continue investigations.