Leeds win another week's grace as players face wage deferrals

Leeds United's acting chairman, Trevor Birch, has been given another seven days to find the funds which will prevent the club falling into the hands of administrators.

In a statement to the Stock Exchange, Birch said a week-long extension to their "standstill agreement" had been agreed with the principal creditors, who are owed a combined £82m. Birch now seems certain to ask the players to defer a portion of their wages ­ likely to be around 30 per cent ­ until the end of the season, which would provide Leeds with the £5m needed to see them through the next four months.

Birch has also managed to agree a possible further two-week extension up to 6 February. However, that will only be allowed if certain financial conditions are met.

A statement to the Stock Exchange 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."

Birch has a healthy relationship with the creditors and it is that which has led to the stay of execution. Yet while the club confirmed that talks have been held with "interested parties" in the last seven weeks, no one has so far stepped forward.

The crux of Leeds' problem is their plight at the foot of the Premiership. With potential investors uncertain as to which division Leeds will be playing in next season, it is not surprising that they are unable to attract a buyer.

The former deputy plc chairman Allan Leighton has long been mooted as a potential saviour, yet the man who runs Royal Mail has so far not shown his hand. Sheikh Abdulrahman bin Mubarak Al-Khalifa's credentials were discredited by Leeds on Friday amid speculation that he was due to save the club with a £35m cash injection.

If no investor steps into the breach, then either a player will have to be sold before the end of this month's transfer window ­ which Birch has already claimed is a last resort ­ or, as is more likely, the playing squad will take a wage deferral. The captain, Dominic Matteo, has taken the lead and stated he will do so, and is understood to be backed by Alan Smith and Eirik Bakke.

Meanwhile, Leeds have dismissed speculation linking their striker Mark Viduka with a move to Turkey, despite claims from Fenerbahce that they have made a near-£5m bid for the 27-year-old Australian.