Carlisle United have suffered a major setback after a potential major investor's involvement in the club fell through.

Scottish businessman Stephen Brown appeared at a news conference at Brunton Park last week saying he had more than �6m to invest following the sale of a Spanish hotel.

But former chairman Michael Knighton has now revealed that the deal is dead.

A statement issued by Knighton's lawyers said Brown had refused to confirm that he has the appropriate funds to buy a 25% stake in Carlisle.

Horrendous embarrassment

BBC Radio Cumbria report that Knighton's lawyers have insisted that the situation is "unacceptable."

Knighton said: "This man has caused horrendous embarrassment to me and the club."

Brown had originally been given until the end of February to come up with the money to buy a stake in the Third Division strugglers.

Brown previously had attempts to buy into two Scottish rugby union clubs dismissed.

He also tried to buy a controlling stake in Scottish Second Division club Partick Thistle three years ago.

The Scotsman newspaper has also revealed that 47-year-old was appointed commercial manager of Gala Fairydean but last just three months as the East of Scotland football club was disatisfied with his performance.

Knighton's lawyers have also stressed that Brown has no connection with Mamcarr Investments, the Gibraltar based consortium which have bought a controlling stake in Carlisle.