Nothing official from the Sounders, however, my translation of this website report begins:
The Board of Directors of the Levante, after a meeting held this afternoon, has decided not to accept the offer of the Seattle Sounders us by Nigerian striker Obafemi Martins and has sent him to the payment of the player contract termination clause.
Other reports indicate the deal may be delayed, but not yet dead, because the club does not have pure veto power.
Chris Henderson, who had been in Spain negotiating for the transfer, was back in town this morning. And general manager Adrian Hanauer gave an interview on KJR this morning in which he said no conclusion had been reached -- although he stressed how difficult a challenge these high-profile international transfers can be.