Cash-strapped Leeds 'given a week to find funds'

The acting chairman of Leeds United was today given seven days to find the £5m (€7.2m) funds which would prevent the club falling into the hands of administrators.

In a statement to the Stock Exchange, Trevor Birch disclosed the week-long extension to the “standstill agreement” with the principal creditors who are owed a combined £82m (€118.4m).

He is now thought certain to ask the club’s highly-paid stars to defer a portion of their wages – likely to be around 30% – until the end of the season, which would give Leeds the £5m (€7.2m) needed to see them through the next four months.

He has also managed to agree the possibility of a further two-week extension to February 6, if certain financial conditions are met.

A statement to the Stock Exchange tonight read: “The Board of Leeds United PLC announces that the company’s principal finance creditors have today agreed to extend the standstill period (announced on 4 December 2003) by a week, to midnight on 26 January 2004.

“This agreement also provides for a further two-week extension to 6 February 2004, conditional on achievement of certain financial and other covenants.”

Mr Birch is known to have a good relationship with the creditors – bondholders MetLife and Teachers in the United States and British firm M&G, along with player-leasing agents Registered European Football Finance Ltd.

However, while the club has confirmed there have been talks with “interested parties” in the last seven weeks since the initial agreement was arranged, no major investor has stepped in so far.

If none is found, either a player will have to be sold before the end of this month’s transfer window – which Mr Birch has already claimed is a last resort - or, more likely, the playing squad will take a wage deferral.