Yorkshire cricket was thrown into turmoil last night when Headingley's owners, Leeds Cricket, Football and Athletic Company, sprang a surprise by announcing negotiations to purchase the Test venue had been scrapped.

Yorkshire chairman Robin Smith, added to the mystery when he later denied that negotiations had been closed by the two parties.

Headingley boss Paul Caddick says Yorkshire indicated at a meeting on Wednesday that they were no longer able to proceed with the purchase of the ground due to the reduction in income, brought about by the new Sky TV deal with the England and Wales Cricket ground.

Yorkshire later issued a statement of their own saying that many of the points raised were to be covered at a board meeting early next week and a formal response would then be available.

Yorkshire's statement read: "The understanding by Yorkshire CC was that any statements relating to the ground purchase were to be of a joint nature, agreed and presented by both parties. It is clear that this has not been adhered to. As far as Yorkshire were concerned, dialogue to a possible ground purchase was still ongoing."

Leeds CFAC said: "Wednesday's meeting had been called after a number of letters had been received from Yorkshire indicating that they were no longer able to proceed.

"For clarity we feel we should confirm that in October 2003, Mr Colin Graves (Yorkshire's chief executive) and Mr Caddick agreed heads of terms for the sale and purchase of the cricket ground to Yorkshire, and those arrangements were to be formalised.

"Unfortunately, Leeds CFAC has struggled to progress matters due to the very slow progress and input of Yorkshire over the past 14 months.

"Heads of terms were formally signed on July 9, 2004, with a cost commitment made by both parties.

"At Wednesday's meeting, Mr Graves confirmed that the purchase was not moving ahead due to the reduction in income from Sky.

"Mr Caddick confirmed that if necessary, the deal could be re-arranged in order facilitate this reduction in income by reducing the initial purchase price until such times as income streams were reinstated to their current level.''

The statement concluded: "We are saddened not only at Yorkshire's withdrawal from the transaction but also by the fact that they have offered no apology for their late withdrawal from the transaction and furthermore tried to blame either the Sky deal or their bankers for this withdrawal when it has become evident that neither of these factors were entirely responsible."