Acting Coventry chairman Geoffrey Robinson has resigned to return to his role as an MP after the collapse of a takeover by an American consortium.
Coventry City have estimated debts of £28m
The club announced that Manhattan Sports Capital Partners Limited withdrew their investment interest on Monday after months of negotiations.
Robinson said he did not have enough time to resurrect another deal and that director Joe Elliot would be chairman.
Paul Fletcher resigned as managing director last week.
Robinson said: "Other intensive negotiations are under way and they need full-time attention."
Manhattan Sports Capital Partners Limited had agreed a deal in principle to buy the Championship side and take on estimated debts of £28m back in February.
But Robinson, who is Labour MP for Coventry North West, feels he does not have the required time to help secure more funding.
"On the resumption of Parliament on Monday 8 October it was quite clear to me that I could no longer continue as acting chairman of Coventry City Football Club for there are simply not enough hours in the day," he said.
"It had been my aim by the end of the (parliamentary) recess to have achieved the Manhattan takeover and to return full-time to Westminster.
"Sadly, Manhattan and other negotiations did not come off so I must stand down now so that I can properly conduct my Westminster and constituency duties."