NEWCASTLE Jesters Ice Hockey Club chairman Paul Smith has resigned from the post seven months into a pay dispute which has threatened the club's future.

The former Durham Wasps owner's decision will bring mixed reactions from fans already concerned over the team's participation in this season's Ice Hockey Superleague.

Many will fear the move will add further delays to the already postponed player payment which has delayed the team's season.

Director of hockey Glenn Mulvenna will continue the day-to-day running of the side, which has already had to postpone its first four games because of the £150,000 dispute, until a "new management framework" is in place.

Lawyers for the Ice Hockey Players' Association, which is acting on their behalf, are working towards an employment tribunal unless the money is paid.

The Northern Echo revealed earlier in the summer how Smith was considering relinquishing the role.

It is understood Smith will continue as managing director of the Eye Group, the media arm of Fablon Investments, which owns the club.

The firm became shareholders in the club at the start of last season and bought out the majority stakeholders, Scandinavian sports firm Jokerit, in November.

Smith said: "As well as my role with the Jesters, I am also managing director of an international sports company that is expanding rapidly. It has now reached the stage where I cannot devote as much time as I would wish to club matters."

He added: "I feel I've done as much as I can to secure the club's long-term future. The past few months have been extremely difficult for everyone involved with the Jesters, but there is now light at the end of the tunnel, so I feel that the time is right for me to go."

Fablon chairman Graham Gutteridge said: "Everyone at Fablon is fully behind the Jesters and all we ask is that the fans show similar commitment."