Massimo Cellino has told Leeds he will not inject any more money into the club unless his takeover bid is approved by the Football League.
Since agreeing to buy a 75 per cent share from current owners GFH Capital, the Italian has effectively been bankrolling the club, funding loan moves for Jack Butland and Connor Wickham as well as paying wages.
The Football League is yet to approve the takeover, however, and though the board is due to meet on Thursday to discuss the matter, a decision may not be made until after a court case next week in Italy revolving around alleged non-payment of import duty. Cellino denies any wrongdoing.
The ongoing uncertainty at the club was reflected on the pitch on Tuesday in a 4-2 Sky Bet Championship loss to Reading.
Beleaguered manager Brian McDermott fears uncertainty surrounding the club's ownership is affecting his players who have now conceded nine goals in the last two home games.
McDermott's own position may be in jeopardy following the poor run of results, and given that the Italian, Cellino, has already tried to sack him in January.
According to the Yorkshire Post, prospective Leeds United owner, Massimo Cellino will be cleared of tax evasion.
The paper say they received an email from the controversial Italian's lawyer, Giovanni Cocco, where he claims he had “fully proved that Mr Cellino is not guilty” over alleged unpaid tax on a yacht he imported from the US.
Should Cellino be cleared, his 75% takeover of the Elland Road club is expected to be green-lighted by the Football League.
The case against Cellino will be held in Sardinia, and is due to start and finish on Tuesday.
A sports lawyer has told Calendar that if the impending takeover of Leeds United by Italian entrenpreneur, Massimo Cellino, falls through the club could face insolvency.
Cellino, who is awaiting the green light from the football league to complete his purchase of Leeds, is facing accusations of tax evasion back home in Italy which threaten to scupper any deal.
But having already invested substantial sums, the club could be left with a large bill to pay. Chris Dawkes reports:
Leeds based sports lawyer, Richard Cramer, has been talking to Calendar's Chris Dawkes about the fresh uncertainty engulfing Leeds United.
He says the club could be vulnerable to entering administration again:
The takeover of Leeds United by controversial Italian entrepreneur, Massimo Cellino, has been plunged into doubt after it was revealed he faces tax evasion charges.
Cellino, who is awaiting confirmation from the Football League before completing his 75% takeover, will face a court case in his native country over unpaid tax on a yacht he imported from the US.
Leeds North-West MP, Greg Mulholland has met with the Football League over the takeover. He says they want the process to be resolved as quickly as possible:
The takeover of Leeds United by Italian entrepreneur Massimo Cellino has been plunged into doubt after it was revealed he faces tax evasion charges.
Cellino, who is awaiting confirmation from the football league before completing his 75% takeover, will face a court case in his native country over unpaid tax on a yacht he imported from the US.
It is thought he has already invested around £5 million into the club so if the deal to buy Leeds falls through it could have drastic consequences.
Leeds based sports lawyer, Richard Cramer, says the club needs a long term solution, and fast:
Massimo Cellino's takeover of Leeds United may be in the balance as he is accused of tax evasion.
According to The Guardian,the takeover will collapse if Cellino is found guilty in a Sardinian court of failing to pay tax which prosecutors allege was due on a yacht he took to Italy from the US.
Cellino is accused of evading paying €400,000 import duty on the yacht.
At a court hearing in Cagliari last week, the Sardinian public prosecutor argued for a €1.165m fine to be imposed on the Cagliari owner.
The case is due to be heard on Tuesday, just five days after the Football League is due to meet to ratify Cellino's takeover.
It is now assumed the League will await the outcome of the tax evasion case against Cellino before making any decision. If Cellino is convicted, it is almost certain he will be barred from completing his purchase of a 75% stake in Leeds
The League will now likely wait for the outcome of the tax evasion case before rubber stamping the takeover of the Elland Road club. Should Cellino be convicted, he will likely be barred from completing the deal.
The Football League have released a statement regarding the potential take over of Leeds United by Italian Massimo Cellino.
"The Football League remains in discussions with both the owners and proposed purchasers of Leeds United. To date, a significant amount of the requested information has been supplied by GFH and Eleonora Sport.
"But there are still a number of outstanding matters that will require further submissions from the two parties.
The Board of The Football League is scheduled to meet on March 13 where it will receive an update on the matter from the League’s executive unless all the remaining issues can be resolved satisfactorily in advance of this date.”
Leeds manager Brian McDermott has held talks with prospective new owner Massimo Cellino over the Italian businessman's plans for the club. The meeting took place at the end of last week, according to Press Association Sport.
Cellino's company Eleonara Sport Ltd exchanged contacts with leeds' current owners Gulf Finance House Capital for 75 per cent of the club's shares.