The judge ruled that there had been unfair prejudice. The announcement was greeted with cheers by the Blackpool fans watching on from the sidelines.
After further discussion in court the judge ruled that a “financial buy-out” was the appropriate course following his findings.
The judge ordered the buy-out jointly against Blackpool Football Club (Properties) Ltd, a company with Oyston family links formerly known as Segesta, and Owen Oyston and Karl Oyston, but not against the football club itself.
How the Oyston family intend to pay the huge bill remains to be seen.
The judge refused the Oystons’ right to appeal but they are likely to take their case to the Court of Appeal instead.
Justice Smith ordered the Oystons to pay £10m to Belokon within 28 days; their assets to be frozen while a timetable for the full amount was decided.
The Oystons’ £26.77m payments to their own companies was described by the judge as “illegitimate stripping of Blackpool FC”.