The Leeds United crisis: Leeds United yesterday secured their survival to the end of the season but have been warned they face the serious possibility of liquidation if relegated.
Their players finally agreed a 25 per cent wage deferral to safeguard the club's immediate future but it is in the knowledge that Leeds not only are under threat of administration but could ultimately be forced out of existence if they lose their Premiership status.
Leeds are bottom of the Premiership and Mark Hovell, an insolvency practitioner drafted in by the Professional Footballers' Association to conduct a financial review at Elland Road, fears the club face being wound up if they cannot find a buyer.
Emergency talks were continuing last night with one of two Yorkshire-based consortiums to declare a firm interest but Leeds's perilous league position is threatening hugely damaging repercussions.
"The big risk [for prospective buyers] is that the club go down a division and you've suddenly lost £25 million of income," said Hovell, a partner at the PFA's Manchester-based solicitors George Davies.
"That's why people aren't rushing forward. If they can't find anyone and go into administration, when the cash starts running out [the administrators] might have to say they're cutting it dead and start selling off any players they can.
"The best-case scenario is that someone decides to take a punt. The worst is that the club are relegated, don't get as much money for their assets as they thought, can't get a number of players off the books, have a huge wage bill and go into liquidation. If you run out of cash, what can you do? It's certainly possible."
Leeds have at least managed to generate the £5 million needed before today's deadline to convince the club's creditors that the standstill agreement currently in place should be extended until the summer. Confirmation of as much should happen this afternoon.
The players' wage deferral should save an estimated £3 million until the end of the season, to go with the removal of Roque Junior's £40,000 weekly salary from their wage bill and the £1.5 million received from Manchester United as the final instalment in Rio Ferdinand's transfer.
It gives the acting chairman, Trevor Birch, three-and-a-half months to investigate the two consortiums interested in buying the club, as well as invite other parties to come forward.
Gerald Krasner, the public face of one group, last night said its solicitors had contacted Leeds to confirm an offer of around £20 million.
Having failed to persuade the senior squad to take a 35 per cent temporary wage-cut 10 days ago, the players' unanimous agreement to compromise at 25 per cent reflected their horror at the fans' reaction to their initial intransigence.
"I think it's a victory for fan power," said John Boocock, of the Leeds Supporters' Trust. "It's good that for once they've listened to what the supporters are saying. They've finally done the right thing. It's just a shame they couldn't have done it earlier."
"Sometimes it needs an ultimatum to make things come to a head," said the PFA's chief executive, Gordon Taylor. "This will go a considerable way towards making sure Leeds stay in business until the end of the season and that there is every opportunity for this club to survive."
Meanwhile, Leeds defender Danny Mills last night strongly rejected suggestions he is holding Middlesbrough to ransom over a permanent £1.5 million move to The Riverside.
Mills is in the middle of a season-long loan deal with Boro - but in light of Leeds's financial crisis, the two clubs have looked to seal a permanent move before the transfer window closes on Monday.
Mills's agent, Neil Featherby, said: "With regard to Danny's so-called inflated demands \ in danger of scuppering a permanent move to Middlesbrough, this is absolute rubbish.
"Danny's main objectives among all of this are to secure his and his family's future - as well as being in a position to play and maintain the high standards he sets himself as a professional footballer."
