Nottingham City Council has been forced to pay off a �4.5m loan on Nottingham Forest's Trent End Stand. The Council has paid the outstanding amount on the 10-year loan because the football club was unable to do so by the June deadline.
It had been acting as guarantor if the club could not keep up its payments.
The move could lead to the council repossessing the City Ground in order to recover the costs. The club has refused to comment on the matter.
Earlier this year the council had to pay off �200,000 of interest owed by the club.
The original amount was borrowed from the Prudential in order to finance the construction of the Trent End Stand and ensuring the ground met the latest safety requirements by becoming all-seater.
Nottingham Forest have since repaid that sum.
It is unclear when the authority will receive payment from the struggling club.