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Last Updated: Friday, 6 July 2007, 13:29 GMT 14:29 UK
Leeds 'may not start next season'
Ken Bates
Ken Bates has already warned that the club's future is in jeopardy
There is now a real danger that Leeds United will not be able to start the new football league season, their administrators KPMG have warned.

The comments were made at a High Court hearing in Leeds, where the club's plans to exit administration are being challenged by HM Revenue & Customs.

KPMG said that unless the club is able to leave administration, the Football League may not let it start the season.

BBC Radio Leeds understands the Football League is as yet undecided.

No-one at the Football League was immediately available for comment.

Renewed rival bids?

The court case has now been adjourned until 3 September, while Leeds are due to play their first game of next season away to Tranmere on Saturday, 11 August.

Former Leeds chairman Gerald Krasner told Sky Sports News he thought the ownership question would be sorted out before the start of the season.

He also raised the possibility that two interested parties could join forward to buy the club if KPMG rejects Mr Bates' plans.

Those who have previously declared an interest in buying the club include Duncan Revie, son of former Leeds manager Don, and property entrepreneur Simon Morris.

Unpaid taxes

Earlier this week, businessman Simon Franks said he was ready to buy Leeds United, through his Redbus investment vehicle.

HM Revenue & Customs is unhappy at the plans of Leeds chairman Ken Bates to pull the club out of administration by paying creditors just 8p in every 1.

Mr Bates has already warned that the cost of defending the court action could cost the club its future.

Leeds United has debts of 35m, with HM Revenue & Customs owed 7.7m in unpaid taxes.

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