Leeds today appointed administrators who immediately agreed to sell the club back to a newly-formed company led by Ken Bates.

The move means that the stricken Championship club, who were all but relegated to League One after last weekend's draw with Ipswich, will be relegated immediately because under Football League rules administration incurs a instant 10-point penalty.

A statement from administrators, KPMG, revealed the club had debts "totalling approximately £35million, with a cash injection of approximately £10million required to continue trading".

Customs recently issued a winding-up petition for approximately £5million, and it was revealed that if this debt had not been paid by June 25th the club may have been forced into liquidation.

The statement added: "The administrators understand from discussions with the Football League that the administration will result in the immediate deduction of 10 points from the club's current points total in this year's Championship. This means that next season the club will start the campaign in League One with no points deducted."