The man hailed as Bradford City's "saviour" has walked away from the club after failing to plough in cash to become its joint owner.

Peter Etherington left yesterday after he missed a deadline set by club owner and chairman Julian Rhodes to produce the first instalment.

But today Mr Rhodes reassured fans the club is safe in his hands despite the collapse of the power-sharing deal.

Mr Etherington had been due to pump £2.5m into the Bantams over the next three years.

However Mr Rhodes told the Telegraph & Argus he had cancelled the deal after Mr Etherington had asked for a delay to allow him to "address a personal issue."

The chairman is now in talks with a third party about a deal to share ownership of the club but he said it would not be a "50-50 split".

He would not reveal the identity of the potential investor but said it was a Bradford City fan.

However Mr Rhodes has reassured fans that he is committed to Bradford City even if a new deal cannot be agreed.

He said: "My message for fans is don't panic about anything. If push comes to shove I can continue especially with the deal we have done with EMC."

EMC (Event Management Catering) has struck an agreement with the club to run banqueting and conference facilities in a deal which will earn Bradford City £2 million over the next five years.

Mr Rhodes said: "I have the capability and the resources to continue but I am talking to other people about bringing in investment."

Mr Rhodes said the club had been holding back from signing players until the deal with Mr Etherington had been concluded.

But he insisted manager Colin Todd would still be able to bring in at least four new players before the start of the season.

And he told the T&A he was confident the club would be close to breaking even at the end of the new season.

A statement issued on the club's website said: "The proposed deal between Julian Rhodes and Peter Etherington, which was to see Peter acquire a 50 per cent stake in Bradford City football club will not now proceed.

"Earlier in July, Peter requested a delay before the deal was concluded in order to allow him time to address a personal issue which was preventing him from making the investment.

"Unfortunately due to a number of large payments that the club had to make over the next few weeks, Peter's request for a delay was unacceptable and alternative arrangements were sought immediately.

"A number of options have arisen. Details of the chosen option will be revealed as and when the deal is completed.

"In the meantime Peter has left the club. His company still has an involvement with the Bantams Business Centre and Peter is working on a proposal to help the club maximise revenues from this venture."

The news of Mr Etherington's departure has been welcomed by David Ward, who had been seconded to work with Bradford City from Leeds Metropolitan University to help boost the club's community involvement.

The project was due to come to an end this summer.

But Mr Ward said he was delighted at the news of Mr Etherington's departure which opened up the possibility of the university's role continuing.

Collapse of deal ends hectic year

The collapse of a deal to take on a 50 per cent share of Bradford City marks the end of a whirlwind year at the club for Peter Etherington.

The businessman joined the club at the start of last season as its commercial manager and rose to the post of chief executive.

This summer he was expected to conclude a deal to become co-owner of the club with chairman Julian Rhodes.

Instead it was announced yesterday that the deal had collapsed and Mr Etherington was to leave after less than 12 months at Valley Parade.

Mr Etherington's first links with City date back to 2001 when his son Matt spent a loan spell at the Bantams.

Matt Etherington is now a star player for Premiership club West Ham United and his father believed his time at Bradford City helped to mould him into a top-flight footballer.

When he arrived last year Mr Etherington told the Telegraph & Argus he intended to transform City into a profitable operation.

He started the Bantams Business Centre last year to bring in up to £750,000 of revenue from firms who would want to base themselves at the football club.

There are now about half a dozen companies based in offices above the club shop with plans for the centre to expand to an upper floor.

Mr Etherington originally hails from Cornwall but his family moved around the country as his son's football career took him to Peterborough United and then Tottenham Hotspur.

His first involvement in football came from a meeting with the then Spurs hierarchy of George Graham and David Pleat who were looking for ways of promoting the club's academy.

Mr Etherington set up his own firm, Oxygen8, to do this, and the company now works with 60 clubs around the country on a variety of income generating schemes such as lotteries and discount cards.

He described Bradford City "as a sleeping giant" when he arrived and said he believed the club's banqueting facilities were being used to 15 per cent of their potential.

He also wanted the club to create its own lottery scheme as a means of making cash.

Other changes during Mr Etherington's spell at the club include the shirt sponsors, with the latest offer from JCT 600 being ousted in favour of a deal with banking group Bradford & Bingley.

The club has also secured a deal with Event Management Catering (EMC) which will take charge of the banqueting and conference facilities at Valley Parade, bringing in £2 million to the club over the next five years.

EMC already runs successful operations at Hull's KC Stadium and at the Galpharm Stadium in Huddersfield.

Mr Etherington will continue to be involved with Bradford City as managing director of Oxygen8, which will run the business centre.

However yesterday's ann-ouncement means his day-to-day involvement with the club is over and fans will be left to wonder if his vision of Bradford City as a commercial giant will ever be realised.

e-mail: john.roberts @bradford.newsquest.co.uk