They could do a Wolves and get relegated again next year, once a club is in freefall it's very hard to stop.
I think they've fallen as far as they're likely to.
Our first season in that division after our last relegation was one in which we went into administration, had a period of a few months where we were not totally certain of being able to complete our fixtures, were asset stripped by our 'saviour', and played for most of the season with a caretaker manager operating with a transfer embargo in place, meaning he could do virtually nothing to improve the squad. Despite all this we managed to avoid relegation (although it was closer than we would have liked) and we started from a far worse position, squad-wise than Leeds are likely to.
Therefore, even if all the talk of administration proves to be reality, I can't see them dropping further. It may affect their ability to get back up at the first attempt (which, as Forest have shown, is not the easiest thing in the world). The only thing which might affect this is if they start the season with a 10-point penalty, although Rotherham showed signs of overcoming this at one stage prior to selling all their best players in January. The biggest problem Leeds will face is the natural expectation from everyone (fans, management, and particularly the media) that they will return straight away. It could adversely affect the players who are probably unlikely to be used to such pressure (I'm not sure if this was a factor this season or not, as on paper the squad had enough quality in it to survive).
The difference between the Wolves experience of the 80s and nowadays is that each drop in division has its own 'quality gulf' which makes a drop through the leagues very unlikely unless there are financial issues affecting the ability of a club to operate properly. Even in a 'worst case' situation of administration and loss of the remaining 'big name' players such as Healy, Thompson, etc I can't see any realistic likelihood of a further drop (and this is ignoring the fact that Leeds have the potential to attract a big-money investment to accelerate the revival process).
I know from all-too-recent experience, just how much of a bugger it is to get back out of that league. However, I've also seen how its possible to survive another drop in the bleakest of circumstances so I don't think the prospect of any further fall is realistic, no matter what happens next.
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