FL WANTS ANSWER FROM KEN BATES
The League have demanded assurances from the club's administrators KPMG regarding the sale before they will reconsider handing back the share.
League chiefs have also expressed their concern "at the handling of the whole process" by KPMG.
But they stressed there was nothing in the Football League rulebook to stop Leeds fulfilling their 2007-08 League One fixtures with the club still in administration.
A Football League statement read: "At their meeting in London today, the board of the Football League considered the reported sale of Leeds United by administrators KPMG.
"To date, no documentation regarding the sale has been submitted to the League by the administrators.
"Notwithstanding this, the board were asked by the reported purchasers to consider an application to transfer Leeds United's share in the Football League to them.
"The board were unable to consent to this request this morning.
"Instead they have requested, from the administrators, certain required documentation and assurances regarding the sale of the club.
"The board also require certainty on the current legal proceedings surrounding the administration.
"The board had been expecting the administrators to attend today's meeting, as KPMG originally requested.
"However, the League were informed late yesterday afternoon that they would not be attending, with no explanation provided.
"Additionally, the board expressed concern at the handling of the whole process by the administrators and the chairman was instructed to obtain legal advice in that regard.
"Clearly any further delays in this process will be frustrating for Leeds supporters.
"However, like the club's fans, the board recognise the pressing need for certainty regarding the future of League football in Leeds and have agreed to convene at the earliest opportunity to reconsider the share transfer, once they have been provided with all the relevant information.
"Also, for the avoidance of doubt, the League would like to make it clear that there is nothing in their
regulations to prevent a club beginning a new playing season whilst in administration."
KPMG opted to sell Leeds back to Bates for an undisclosed sum in preference to other interested parties without the need for a Company Voluntary Arrangement (CVA) - and that does not sit favourably with the Football League.
Competition rules stipulate that once in administration the Football League will only hand back their share if a CVA has been agreed by the majority of the club's creditors.
Local property developer Simon Morris and London-based finance firm Redbus Group, headed by Simon Franks, have expressed their surprise that Bates' latest offer for the club was accepted by the administrators.
Former Hull chairman Adam Pearson, a director at Leeds until 2001, is also understood to have made a conditional bid.
Although Bates' offer was deemed by KPMG to be better for the long-term future of the club, the Football League have questioned the administrators' handling of the affair.
In early May Bates placed the club in administration with debts of around £35million, of which £7.7million was owed to the Inland Revenue in unpaid taxes.
KPMG agreed to sell the club immediately to a newly-formed company headed by Bates and under the terms of his initial 1p-in-the-pound buy-back deal the Inland Revenue were set to receive just £77,000.
Bates increased his offer to 8p in the pound, but his last-ditch offer to head off the Inland Revenue's legal challenge proved in vain.
The High Court recently postponed a decision on the Inland Revenue's appeal until September 3.
With the new season fast approaching this prompted KPMG to scrap Bates' CVA proposal and put the club back on the market.
But it appears KPMG have yet to satisfy the Football League that their decision to sell the club back to Bates again, this time without the need for the creditors' approval under the terms of a CVA, was in the best interests of both Leeds and their creditors.
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Better dead than red.
Leeds United. R.I.P.
