Leeds have a day to raise £5m

LEEDS UNITED were continuing to work behind the scenes on a rescue package last night as the Barclaycard Premiership’s chairmen prepared to discuss severe penalties for clubs going into administration.

A Yorkshire-based consortium, which has put together a £20million bid for the crisis-torn club, were deep in talks as tomorrow’s 5pm deadline, by which time they must satisfy the club’s creditors that the club can stay afloat for the rest of the season, fast approached.

It is understood that chief executive Trevor Birch was meeting creditors yesterday before heading for today’s monthly meeting of Premier League chairmen.

Leeds, who have debts in excess of £80million, need to raise £5million by tomorrow, although firm evidence that the funding will be in place could lead to a further week’s extension until February 6.

To that end, the Elland Road club were handed a boost yesterday when Manchester United agreed to pay them £1.5million in final settlement of Rio Ferdinand’s move to Old Trafford.

United handed over an initial payment of £15million and a further instalment of £14.3million was paid a year later, but the fee was structured in such a way that the total could eventually have amounted to £32.5million.

However, Leeds’ plight is such that they have effectively written off £1.75million in the long-term by accepting £1.5million up front to boost their fighting fund.

This time last year they reluctantly sold star defender Jonathan Woodgate to Newcastle as their cash-flow problems hit hard.

This time around, they are desperate to hang on to what remains of a squad, assembled to such disastrous financial effect by former boss David O’Leary under then chairman Peter Ridsdale.

They have already rejected an offer from Tottenham for goalkeeper Paul Robinson and talented youngster James Milner, while Newcastle’s interest in striker Alan Smith has so far been rebuffed.

However, the club is hopeful of reaching agreement with Middlesbrough for full-back Danny Mills, who is currently on a season’s loan at the Riverside Stadium.

The Leeds’ playing staff have reacted angrily to claims that they refused to help their club when the move was suggested, and fans’ favourite David Batty today issued a personal message to supporters to dismiss suggestions he had led a rebellion.

“The fans should know that myself in particular and the Leeds players would never risk the future of Leeds United, least of all for personal gain,” he said in a statement.