Nottingham Forest has failed to clear a debt of �4.5m which could force the city council, as guarantors, to step in and repay the money. In 2003 the club failed to meet a �200,000 interest payment and the council became liable.
The payment was met by club chairman Nigel Doughty but talks over the whole loan being paid off by June 2004 have not been successful.
The council said it still could force the club out of the City Ground.
Forest took out the �4.3m loan to help develop a new Trent End stand and turn the City Ground into an all-seater stadium for the Euro 96 finals. The authority is legally liable for the loan but council leader Jon Collins insisted public services will not be affected.
He said: "I can give an absolute assurance there will be no impact on the current year's budget and no impact to services to people in the city.
He added: "The point at which we have to make a payment is the point we go to court to recover the �4.6m from Nottingham Forest and also to recover the lease."
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The point at which we have to make a payment is the point we go to court to recover the �4.6m 
