The owner of Blackpool Football Club Owen Oyston is considering taking out a mammoth £25m loan to pay off the club’s former director Valeri Belokon.
Oyston, owner since 1988, is desperately clinging onto control of the football club.
It is understood the loan, if Oyston opts to take it out, will be against the same money lender that lent him £5m to help fund December’s original £10m payment to the Latvian millionaire.
The Gazette also understands Oyston will use the loan as a means of biding time while he attempts to sell some of his assets.
It would be a huge risk given the interest on the repayments could be as high as £375,000 a month.
Belokon’s lawyers have informed his representatives that Oyston is considering borrowing the money but “time will tell” if he actually goes ahead with it.
Oyston returned to the court on Monday to ask for an extension having missed last month's deadline to pay Belokon his second installment of £10m.
But Justice Marcus Smith Smith dismissed his application and instead reviewed the whole staging scheme, which included two lots of £7.5m by 30 March and 31 May.
He said Oyston had failed to progress the sale of assets, which had prejudiced Mr Belokon, and the Court of Appeal had now dismissed his application to overturn the original court judgement from last November.
Owen was ordered to immediately pay up the £25m or face the consequences of enforcement action being taken to make him sell his assets.
That could potentially mean the football club going into receivership, although Belokon’s legal representative told the judge his client he would not pursue action against the club.
It comes after the Oystons were ordered to buy out former director Belokon for £31.27m back in November after it was found they had illegitimately stripped the club of cash following promotion to the Premier League in 2010.
The judge found Belokon had been unfairly prejudiced and the club was put up for sale four days later.
Although Oyston still faces a mammoth bill, he remains determined to keep hold of the football club at any cost.
So much so, his relationship with his son Karl has deteriorated to the extent he decided to remove him as chairman and director last week.
His daughter Natalie Christopher was subsequently installed as chairwoman. Sam, Karl’s son, remains as chief executive.
It is understood relations have completely broken down between the two, with Owen wanting to keep control of the club while Karl was reportedly prepared to wash his hands of it.