A telecommunications deal has fallen through that would have netted Hereford United around £100,000.

The news is a major set-back for United's fans, who have been raising money to keep afloat the cash-stapped club.

Hereford United must appear at the Royal Courts of Justice in London on January 27 to defend a winding-up order.

The club are understood to have failed to meet a payment of around £36,000 to HMRC.

A club statement said: "Following lengthy discussions with the telecom operator, the council solicitors, the club, and club solicitors, the board are extremely disappointed to confirm that the telecom deal is no longer going ahead due to the difficult measures required by all sides to agree lift and shift provisions that would be acceptable."

According to the statement, the problems included:

• Failure to agree controls over where the equipment would be situated when the ground is redeveloped.

• Failure to agree who would carry the cost of removing and relocating the telecoms equipment once development of the ground is undertaken.

• Failure to agree controls over adding future operators without approval of both the landlord (council) and the club.

"Clearly this was an untenable situation leaving the club and council with future problems, putting the football club in breach of the newly agreed head lease," the club statement added.