Grovemoor Ltd will not be taking up their option to buy Cork City.
The decision of the company controlled by Preston North End owner Trevor Hemmings is down to an inability to secure Turner's Cross.
Hemmings first came into Cork's orbit when Preston purchased the sell-on clauses of Republic of Ireland internationals Seani Maguire and Alan Browne in an effort to ease their financial problems.
Cork City is currently owned - as they have been for the past decade - by supporters' trust, FORAS.
That deal also included taking on all of City's liabilities, but crucially did not include their Turner's Cross ground.
The stadium is not owned by the club, but rather the Munster Football Association (MFA).
EchoLive report that Grovemoor have not been able to come to an immediate agreement with the MFA regarding the sale of Turner's Cross or its long-term lease.
The stall on the club's sale adds another layer of uncertainty to the Leeside club.
They were relegated to the SSE Airtricity First Division after a disastrous season which saw them win just two of their eighteen games.
FORAS had applied for a 2021 First Division licence in the event that business with Grovemoor was not conducted in time.
It's believed the relationship between Grovemoor and City remain positive, despite the Turner's Cross stumbling block.
Cork City statement:
Grovemoor Ltd has informed the Board of Management that due to being unable to agree terms on a lease agreement with the Munster Football Association (MFA), Grovemoor Ltd will not be proceeding with their option to purchase Cork City Football Club at this time.
Friends of the Rebel Army Society Ltd (FORAS) will now be proceeding with our own plans for 2021 and implementing a budget which will give us a stable and sustainable team for the 2021 football season.
We can confirm that FORAS has lodged a license application in accordance with the deadlines laid out by the Licensing Department and we remain in constant contact with the FAI with regards our the status of our application.
We may seek to negotiate reduced rates with the MFA for Turner’s Cross in line with our budget, which if unsuccessful will result in us exploring alternative venues for playing behind-closed-doors for next season.
The Board will not be making further comment at this time but will send a full update to our members on our plans, for Tuesday, December 22nd.