Members have been advised to give their lease back to Calderdale Council which will manage the premises and cover the running costs – expected to run into tens of thousands of pounds.

"The loss of rent from Halifax Town, the loss of grant from the council and other future finance means it would be irresponsible for us to carry on," said trust chairman Roger Simpson.

The council is still pressing ahead with its £2.7 million project to complete the East Stand and has promised to announce full details and a start date before the end of July.

Mr Simpson, who has chaired the trust since its inception, said it was solvent for now but income projections to the end of the year showed it was not viable.

An extraordinary members meeting will be held this month to vote on the winding up plan.

"If they don't agree to surrender the lease, the independent members including myself will resign. We are not prepared to see the trust go bankrupt," said Mr Simpson.

He said the trust had achieved a great deal and it was disappointing they had not been able to raise the finance to fit it out. "I am sure that in the longer term the stadium will be viable but the trust can't wait that long."

The council has been giving the trust £35,000 to boost community use of the ground.

The trust has also relied on rent from the football and rugby league clubs, the Weavers bar and car parking charges to cover other costs, for example salaries, including those of chief executive Geoff Butler.

But Halifax Town has negotiated a rent reduction from £48,000 to about £30,000 for its first season in Unibond Division One North and the income from the Weavers will disappear in the East Stand improvements.
Calderdale Council's deputy Conservative leader Stephen Baines has told the trust that because this makes it unviable, he is withdrawing the grant.
"We are committed to maintaining the Shay as a venue for professional sport and in the short term the council will take on all duties previously carried out by the stadium trust.
"Work is still due to start on the minimum scheme for the East Stand by the end of the summer and we are confident that by December we will have a scheme in place to make the stadium economically viable.
"We will then be able to look at a number of longer term options for its management," said Coun Baines (North-owram and Shelf).