Mark Hook has admitted Gosport Borough have been left with a £40,000 hole in their budget after sponsor Jim Fallon walked out on the club.
Fallon was looking to return to football after serving a three-year FA ban for transfer irregularities while a director at the Hawks.
He recently told The News he intended to give the Privett Park club financial assistance – without being involved in its day-to-day running.
However, when Hook contacted him for his first payment, Fallon said he was pulling out.
The Borough chairman said: ‘It is very disappointing.
‘We met with him on seven occasions between April and July.
‘He had approached the club because of the financial problems we had last season.
‘At the time we believed the offer was genuine – with £40,000 the figure being bandied about.
‘We budgeted for that and now find ourselves with a £40,000 shortfall we need to make up.
‘On the positive side, the vast majority of the money was due December, January and February – the periods that are most difficult for football clubs.
‘That gives us a chance to go out and raise the funding.
‘We asked Jim Fallon to make a contribution as the players’ first month’s money was due to be paid.
‘He said because of family pressures he could no longer commit to the club.
‘Despite this we were still able to ensure the funds were there – as they will be every month.
‘We are always looking for new directors to come in and help raise the profile of the club and with funding.’