Leeds negotiate deadline extension
LONDON, England -- Debt-ridden Leeds United have agreed a one-week extension to secure new funds, staving off the immediate threat of becoming the first English Premier League club to go into financial administration.
Creditors had given Leeds, who have debts of $82 million, until Monday to reach a deal, but spokesman Don Waters said the club had negotiated a reprieve.
"It's just one week's extension. We hope it's enough for the chief executive to try and come up with some money. That's all we've been given. We'll be working hard to raise that money," said Waters.
Leeds shares plunged on Monday, trading down 11.2 percent at 3.75 pence, amid continuing uncertainty about the club's future.
Leeds, currently bottom of the Premier League, could raise funds to stay in business until the end of the season by selling players, such as sought-after strikers Alan Smith and Mark Viduka, or by asking their squad to take a pay cut.
But their longer term future may be determined by their ability to avoid relegation.
Sheikh Abdulrahman bin Mubarak al-Khalifa, a member of Bahrain's royal family, and Chinese businessman Xu Ming have expressed interest in investing in the club, but a drop to division one would make Leeds a much less attractive proposition for investors.
"It's quite clear that nobody is out there wanting to take the risk on relegation because it brings with it a big trading loss," said chief executive Trevor Birch on Sunday.
"Anybody buying at this stage is taking a risk they will be on the hook for that next year."
