The newspaper has also alleged that 10 as-yet-unnamed managers took bribes in player transfers.
In a separate development, The Telegraph also alleges Leeds owner Massimo Cellino explained ways by which to circumvent FA and FIFA rules on transfers.
In video footage obtained by the Telegraph of a meeting between Cellino and a fictitious investment firm, the Italian appears to suggest to the firm it could become a club shareholder in order to receive a portion of players' sell-on fees.
FA and FIFA rules ban third-party ownership of players, and third parties receiving any percentage of a player's transfer fees.
Cellino says in the video: "I tell you, I spend eight million this year.. on new players. You want to finance that? You want to come 20 per cent in that? You got 20 per cent of the player - it's the only way.
"As a shareholder you can finance the club, asking everything you want - percentage - you are allowed to do it in England."
Leeds declined to comment when contacted by the Press Association on Wednesday night.
