Farsley Celtic have been disbanded after the club's administrators rejected numerous improved offers from the Palmer-Farrell consortium.
Their expulsion from the Football Conference was expected to occur later this week after they failed to fulfil their last three fixtures.
The Blue Square North side entered administration at the start of the season with reported debts of £750,000.
The club are expected to reform next season in the Unibond First Division.
A statement from administrator Robert Adamson said: "The consortium has known for three months the required level of funding to enable to the club to exit the administration via a CVA [Company Voluntary Arrangement], as required by League rules, and they simply haven't been able to raise sufficient funds.
"As an officer of the court, one of my statutory obligations is that I must be satisfied, in my professional capacity as an insolvency practitioner, that a CVA is viable.
That opportunity has been taken away by people who sit in offices, with flash cars, big fat salaries and posh ties on and they don't know the emotions that are involved in it
Farsley manager Neil Parsley
"I cannot move forward this offer and meet that statutory obligation. The deal was based on creditors' accepting a reduced return but not all creditors were agreeable to this.
"We are as disappointed as everybody with today's events and we reject Councillor Andrew Carter's comments regarding our understanding of the importance of the club to the community.
"We have worked extremely hard and continue to do so to ensure that the remaining teams are able to fulfil their fixtures with the continued use of the site's facilities, and indeed we met with the Junior's chairman last week to confirm our commitment."
Farsley started the Blue Square North season with a 10-point deduction, but had moved to a safe position in mid-table.
The perceived lack of assistance from the administrator to allow the Palmer-Farrell consortium's bid to be accepted has been meet by a furious reaction from many people, including now outgoing manager Neil Parsley.
The Palmer-Farrell consortium remain fully committed to continuing the tradition of the club and will fight all obstacles to try and save the club in whatever form that might be
Solicitor James Moore
James Moore, solicitor for the Palmer-Farrell consortium, said: "It is disappointing to note recent comments from the administrators of the club regarding why a sale was not agreed. The Football Conference rules require a specific exit from administration for any member club.
"The consortium have worked very hard over recent months to ensure that the club could exit administration and retain its membership of the Football Conference and as such were ready to submit a company voluntary arrangement to creditors that would have complied with the rules of the Football Conference.
"In recent weeks, deadlines had to be set in order to ensure that the club had a chance to exit administration before the end of the season as is required by the Football Conference.
"However, despite being the only party willing and able to save the club, the figures required by the administrators were constantly moving and therefore this made it impossible to finalise a sale.
"The consortium were the only party sat at the table ready to order but were not getting served.
"In the seven days between the meeting with the administrators to discuss the consortium's first offer and our final discussion to try and save the club, the amount required by the administrators had increased by £100,000 for which no explanation has been given.
"I am aware that both the supporters, the players and creditors are unhappy about the current position. However, the Palmer-Farrell consortium remain fully committed to continuing the tradition of the club and will fight all obstacles to try and save the club in whatever form that might be."
"I remained optimistic this could all go through because deals were trying to be done and people trying to be appeased and people were trying to work with us," Parsley told BBC Radio Leeds.
"But as it's turned out I don't think certain people were working with us at all. I think people were actually working against us.
"I'm very angry, upset and disappointed about it all. I just couldn't tell the players face-to-face what has happened. I didn't have the bottle because we'd been through so much but I will speak to them all very soon when my emotions have calmed down.
"All the players have now been released by the club and are free to join other clubs. I'm sure they'll all get snapped up soon because they are very good players.
"The players have been great this season for us. They'd got themselves in a position where they'd moved from a 10-point deduction to a position where we were mid-table and could have secured our survival in Blue Square North within the next 10 days.
"That opportunity has been taken away from them by people who don't understand what Farsley Celtic are all about and what football are all about.
"That opportunity has been taken away by people who sit in offices, with flash cars, big fat salaries and posh ties on and they don't know the emotions that are involved in it."
The Palmer-Farrell consortium are now trying to save Farsley's Throstle Nest ground, which has been a constant target for property developers through the club's administration.
Farsley's junior section, women's team and Leeds Carnegie Ladies all still use the facilities and the consortium are determined to win the ground back.
This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.