The Pinnacle group remain locked in talks with the Football League as they look to buy Southampton, the JC understands.

The Football League ruled that Pinnacle - which includes ex-Saints player Matt Le Tissier - must waive any right to appeal against a 10 point deduction after their parent company entered administration.

Pinnacle, who reportedly settled outstanding players' wages, in the region of £500,000 last week, saw its period of exclusivity as bidders end on 19 June without agreement being reached as the takeover bid stalled over the 10-point issue.

But property company boss Michael Fialka, 32, denied reports that the deal has collapsed. “It’s all up in the air at the moment,” he told me. “The reality is that there are a few issues with the Football League. We’ve had a bit of a standoff as we would only consider a deal if the penalty was 10 points rather than 15.

“I need confirmation. Once it goes through then everyone will be happy.”

Fialka revealed that, should the takeover go through, he would “end up with one third of the club and be the main director on a four-man board.”