Speaking on BBC Radio 5 Live, Graham revealed his belief that there is no hope for his former club.
With Leeds 6 points from safety, after their defeat against Middlesbrough on Saturday, and what with the financial constraints, he can see no way for them to get out of trouble.
"It looks really bad for them now, It's so sad because they are such a big club. But if they go down this year it will take quite a few to get back again."
He revealed the club had similar troubles when he joined but managed to shake them off, and also that he believes the new problems came around due to mis-management.