Southampton could close for good after rescue plan rejected

Southampton are on the brink of closure after the Football League rejected a takeover bid fronted by former Saints ace Matt Le Tissier.

The £15million deal to rescue the debt-ridden club from administration broke down on Friday night in a dispute over the 10-point penalty imposed by the League on relegated Saints.

Le Tissier had nominated Leicester boss Nigel Pearson as their new manager. But an approach for him cannot be made until the future of the club is resolved.

The package put together by The Pinnacle Group, which wants to install former England striker Le Tissier as club chairman, hinges on the points penalty being removed.

Pinnacle insist the way they have agreed to buy the club and various assets from insolvent parent company Southampton Leisure Holdings proves the football club has never been in administration - so the points deduction should not apply.

But the League have refused to grant Pinnacle a licence to play in League One in August until they agree to drop plans to appeal against the 10-point sanction.

Saints administrator Mark Fry has spent three months trying to rescue the club since ex-chairman Rupert Lowe called time on its debts in excess of £30m.

And Fry admitted yesterday that if the League insist Saints start next season on minus 10 points, he may not be able to find a new buyer.

Fry said: "There are a number of very small issues that remain but the principle one is the Football League situation.

"The League has agreed to have an emergency board meeting on Monday but until any bidder can be satisfied about membership of the League they won't complete a purchase of the club."