Blackpool owners the Oystons lose court battle with Belokon

Karl Oyston running of the club has been questioned repeatedly. Credit: PA

Blackpool's owners the Oyston family have lost a bitter multimillion-pound court battle with a Latvian investor in the troubled club.

Owen and Karl Oyston, owner and chairman of the Lancashire club, were in dispute with businessman Valeri Belokon, who provided £4.75million in July 2008 for development of the club's South Stand.

Dispute then arose between them in respect of the share due to Mr Belokon of any income and profits generated following the development of the South Stand, and the deduction of legitimate expenditure, including a loss-making hotel, from what Mr Belokon believed he was owed under the commercial agreement.

The case brought by JSC Baltic International Bank, owned by Mr Belokon, against Segesta Limited, the holding company for the football club's assets, first went before the Mercantile Court sitting in Manchester last December.

Lawyers for Mr Belokon and the bank argued a narrow range of expenditure is to be deducted from income in order to calculate his profit share.

Segesta's lawyers in turn asked for a broader range.

On Thursday, judge Jane Moulder delivered her judgment in favour of Mr Belekon.

Around 15 Blackpool football fans sat in court, some in the club's tangerine colours, responding with a muted "Yes" in the hushed courtroom as the judge ruled against the club.

Thousands of fans have been boycotting their home games in protest at the ownership and running of the club by the Oyston family.

The team have plunged down the Football League to the fourth tier of the English game, just six years after being in the Premier League.

Many fans would like the Oystons to sell the club. Credit: PA

The exact amount the club's owners will have to pay Mr Belokon will have to be worked out by a forensic accountant at a later date.

It is thought to be in the region of £1-2million.

Fraser Campbell, acting for Mr Belokon, applied for a £978,000 interim payment and for Segesta to also pay court costs of £900,000.

Judge Moulder agreed to make an interim order of costs in the sum of £425,000, however he declined to order an interim payment against the amount due in respect of the account immediately and rather adjourned that application to be heard in the week commencing March 27 2017.

Eric Shannon, representing the club, applied for leave to appeal to the Court of Appeal, but this was refused by the judge.