The High Court has approved an application to appoint a receiver to recover the 25 million pounds Owen Oyston owes Valeri Belokon.
Owen Oyston's 31-year reign at Blackpool was ended in the High Court of Justice on Wednesday when a judge appointed receivers to take control of the Sky Bet League One club.
The decision is a defeat for the 85-year-old, who bought the club in 1988 but has been embroiled in a bitter dispute with former business partner and club president Valeri Belokon for several years, and it will be celebrated by Blackpool fans.
But it comes with the risk of the English Football League's 12-point penalty for clubs that experience an "insolvency event" - a measure designed to
prevent clubs from gaining an unfair advantage by living beyond their means.
Blackpool's case, however, is different to most of football's other recent financial crises as the club is not insolvent and is now in the hands of
receivers, not administrators. A receiver is appointed on behalf of a particular creditor, while administrators are appointed by the court to stop any further losses or wind up the business.
Statement from the Receivers
"David Rubin & Partners are only too aware of the history of Blackpool Football Club, the central part the club plays in the community and the emotions involved for those supporters dedicated to securing its future. "This has obviously been an unsettling period in the club's history. "But in this time of uncertainty, the joint receivers will be doing everything in their power to keep the fans informed of relevant developments.”
Statement from Mr Belokon's team
"A Clifford Chance team led by litigation partner Chris Yates today secured the appointment of an equitable receiver over Blackpool Football Club and related assets. We are very pleased to secure this further victory for our client, VB Football Assets, in this long running dispute"
The appointment of a receiver though, may trigger a 12 point deduction for Blackpool.
A 12-point deduction, if it was applied, would see Blackpool fall from eighth place to 17th, just two points above the relegation zone.
In a statement, EFL chief executive Shaun Harvey said: "The EFL notes today's developments in regard to Blackpool Football Club following the hearing in the High Court.
"The matter will now be considered by the EFL Board at the earliest opportunity (March 6) and we will be seeking an early meeting with the receiver,
so as to ensure that the best interests of the club can be jointly considered, against the context of our regulatory framework."
Christine Seddon from the Blackpool Supporters' Trust gave her reaction to Radio Wave's Andy Mitchell..
click to listen