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Scarboro are on the brink of bankruptcy after the local council rejected the latest attempt for the club to sell the existing McCain Stadium site for redevelopment and move to a new ground on the outskirts of the town.
In January, the council voted to remove restrictive covenants on the ground under certain circumstances but the council appear to have decided that the circumstances have not been met.
The club have been advised by the FA to apply to the North East Counties League as a new company, playing initially away from the McCain Stadium until ownership issues over the ground are resolved.
