A statement on Thursday has said that on behalf of the Tomlinson-Ryan Trust,the deal has failed to get approval from the Football League and has caused a collapse in the investment.
The footballing bodies have been contacted but have made no clear decision yet as to if the approval has been declared or not.
John Ryan told the club website,"It's just a potential story and a a fabrication of the truth.Unless we have a lot of cash,we'll be turned down by the Football League."
Ryan,64,had previously been chairman for fifteen years.He now has admitted he may never be involved in football again.
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