John Ryan, the businessman who was set to take over Doncaster Rovers with One Direction singer Louis Tomlinson, has said the deal is off.
A statement released on Thursday, purporting to be sent on behalf of the Tomlinson Ryan Trust, said the deal was "in serious doubt" because of issues with the crowd-funding initiative.
Ryan said the deal had collapsed over a lack of Football League approval.
"The statement is a fabrication," he told BBC Radio Sheffield.
"It is an unauthorised version of the truth.
"The situation is that the crowd-funder didn't succeed and we are very sorry about that but the real problem is with the Football League.
"They have made it so difficult now that unless you have a bag full of cash you are going to get turned down."
The Football League has released a statement to say that they were not presented with a satisfactory business plan to support the takeover.
"In any club takeover it is a requirement for the prospective purchaser to provide a business plan and to demonstrate that the funding is in place to deliver on that plan," they said.
"In this case, this fundamental requirement has not yet been met. We are in close contact with the club and will continue our dialogue."
It had previously been expected that Ryan and Tomlinson would complete their takeover on Friday, having exchanged contracts on the deal last month.
They had hoped to raise additional money to support the team through the crowd-funding initiative.
The 64-year-old, who guided the club from the Conference to the Championship before ending his 15-year involvement with Rovers in November, claims he will now end his association with football.
"As far as I am concerned this is a dark day for football," Ryan added.
"Louis and I were just looking to do the right thing but this is the end of my involvement in football now.
"It has been a long love affair between myself and Doncaster Rovers but it has hit the buffers today.
"The way I feel right now I doubt I will ever go to another football match in my life."
The club's current owners Terry Bramall and Dick Watson have confirmed to BBC Radio Sheffield that they are in a position to continue running the League One club.
Paul Dickov's side, relegated from the Championship in May, have not made a single signing this summer.