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 were angry that he sold the Durham team to Sir John Hall and link his return to the sport with a downturn in the team's fortunes.

However, 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: "Several months ago, I said that I would eventually resign from my position as chairman of the Jesters. This was due to work commitments elsewhere.

"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.

"Consequently, I have now made the decision to leave."

He added: "I feel I've done as much as I can to secure the club's long-term future. The last 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: "Anyone who knows Paul will appreciate the amount of time and effort he has put into the Newcastle Jesters. He has been in charge of the club through a very difficult transitional period, and I feel that he hasn't had the credit that he deserves.

"However, I understand his reasons for wanting to move on and perhaps it is appropriate at a time when the Jesters club is entering a new era. Everyone at Fablon is fully behind the Jesters and all we ask is that the fans show similar commitment.

"We have pumped hundreds of thousands of pounds into this club in order to keep it afloat, and we are happy for that to continue as long as we can see that the region is keen to maintain and ice hockey club at the highest level."

Jo Collins, executive director of the IHPA, described the move as "an interesting development", but "nothing unexpected". "All the pressure he's been under, he's probably had enough," she said.

Read more about the Jesters here.