Krasner fears worst for Leeds

Leeds chairman Gerald Krasner today admitted the club are facing administration following the collapse of Sebastien Sainsbury's proposed takeover.

With the £25million buy-out in tatters, Leeds stand on the brink of financial meltdown, potentially within the next three months. Asked whether Sainsbury's decision meant administration was now around the corner for Leeds, Krasner, said: "Eventually it will happen. It is not going to happen today or tomorrow but unless something positive happens [with another investor], it will happen.

The financial situation has not been good since day one. But having reduced the debts from £104m to less than £25m, we are not going to give up."

Sainsbury pulled the plug on his Elland Road bid amid fears over the club's the high level of debt.

Although, as Krasner points out, losses have been slashed in the last 10 months, the club is expected to lose £10m between now and the end of the season. Anyone staging a takeover bid - and Leeds-based property developer Norman Stubbs is the only interested party left - would have to find £40m.

"We never had all our eggs in one basket and we do have a possible contingency plan," added Krasner.