Leeds United is around �80m in debt

The football club, struggling against �80m debts, may need this protection against its main creditors, after talks with them failed to win agreement.

Leeds has also shelved plans for deputy chairman Allan Leighton to inject �4.4m into the club.

Shares in the club fell 28.5% on the news, down 1 pence to just 2.5p.

Leeds now must give creditors five days notice of any administration order hearing. During that time, creditors can try to force the club into receivership.

First step

ADMINISTRATION Designed to rescue companies in financial trouble - or maximise their value Helps firms to avoid receivership or liquidation Only courts can order firms to go into administration The company itself can ask for this, as can creditors Financial reports etc must prove administration is better than liquidation Company will be placed under day-to-day control of administrators A company in administration is protected against its creditors

Currently bottom of the English Premiership, Leeds told the Stock Exchange that it "may be forced to seek the protection of an administration order".

This would be a first step in protecting the club from the prospect of main creditors attempting to put the club into receivership - or close it down - to get their monies back.

The two main creditors who have failed to come to an agreement with Leeds are a group of American bondholders, to whom the club owes almost �60m, and a Guernsey-based finance company which helped fund player purchases worth �21m.

Leeds United's woes have been building up on and off the pitch.

It recently parted company with manager Peter Reid, and player Jody Morris has been charged with rape.

Ridsdale

My belief is that there will always be a Leeds United Football Club, but I do not believe Leeds United plc will survive for very much longer Dr Bill Gerard, Leeds Business School Check out Leeds United's latest share price

The club's financial difficulties can be traced back to the time of former chairman Peter Ridsdale, when Leeds borrowed heavily to fund its ambition to turn the club into a giant of European football.

Ridsdale is now at Barnsley.

Despite reaching a semi-final of the Champions League competition, the debt quickly returned to haunt the club, and a number of key players were sold to recoup funds.

While the future of the financial company Leeds United plc is now very much in doubt, Dr Bill Gerard of the Leeds Business School, says the football club itself should be safe.

He said: "My belief, and it's a very strong belief, is that there will always be a Leeds United Football Club, but I do not believe Leeds United plc will survive for very much longer."

Financial astuteness

Dr Gerard added: "We will then see Leeds United Football Club put up for sale by an administrator and hopefully the next set of owners are able to show a degree of financial astuteness and an understanding of football far superior to the owners in the last few years."

In recent weeks Leeds have courted a Middle Eastern sheikh to try and help them out of their financial mire.

Some commentators believe the man in question - Mubarak al-Khalifi - was involved in Mr Leighton's proposed �4.4m cash injection.

The club must now be hoping that al-Khalifi - a Leeds supporter for the last 20 years - is prepared, and has the ability, to invest substantially more.