DANNY DONEGAN has conceded defeat in the battle for Swindon Town but warned that Willie Carson's consortium will need to find serious cash to treat a 'bleeding' football club.

Before walking out of the County Ground for the last time, Donegan said the way his exit had come about really 'stank' and that he felt the club would suffer.

He felt his departure had crushed a golden opportunity for Town to follow in the footsteps of their re-vitalised rivals Reading.

The former chairman said carrying on the fight was pointless as the rival consortium would win the day at next month's EGM.

Speaking at a meeting of the Swindon Town Supporters' Trust, Donegan said the consortium would need to find more than £1 million to sustain a club that was losing £120,000 a month.

Although clearly angry at his unceremonious removal from the boardroom, Donegan promised supporters that he would not make the club and its supporters pay a high price.

He said: "I've got no intentions of being spiteful towards the club."

He also reiterated his desire for Roy Evans and Neil Ruddock to remain at the club and finish what they started.

He said: "I think you can see the difference they have made."

Donegan said his dream of taking Town into the First Division and ultimately the Premiership had been dashed and he questioned the ambition of both the consortium and the council.

He said: "If you aim for the Second Division, you end up in the Conference."

Donegan said: "The new consortium have to take this club forward.

"I just hope they know what they're taking on and I hope they have the finances to take the club forward.

"But I know that a million pounds is not enough. I don't think this consortium will see the job through."

The meeting was also addressed by consortium member Cliff Puffett who said the consortium was well aware of the need to make swift progress on generating revenue.

He said: "This club cannot survive just relying on the income from football alone.

"It needs a redevelopment of some description, whether that is the County Ground, the Front Garden or somewhere else.

"Let's get back to meaningful discussions with the council.

"This football club needs to be part of other income streams, whether that be hotels, casinos or health clubs, for example.

"We have to work with the council to see how that is achievable.

"And I think that has to be in place in blueprint within a period of two years. Because any longer than that and I don't think we will survive."

Chief executive Pete Rowe said he would give total suppport to the board elected on December 7 at the EGM but he too expressed doubts about the level of investment needed.

He said: "I am now looking at my fourth chairman in 18 months and that for any football club is not right.

"This club is crying out for stability. If we can get that stability and some proper investment then I have great faith that we can take the thing forward.

"But nobody should be under any illusions. It's going to be one hell of a job. Let's try and learn something from this last few months and pray we don't come down this road again.

"But there is no doubt that £1 million won't go very far. I am just desperate to avoid a future begging bowl scenario."

A full council meeting last night revealed Town will not be able to honour its promise to pay back its rent and rates arrears on time to Swindon Borough Council.

The club has sent the council a letter saying that due to the current board turmoil, it will be unable to pay up the remainder of the £101,000 rent it owed at the start of September, or the £92,000 business rates it was found to owe last month.

The news was met with groans last night as Council Leader Mike Bawden (Con, Old Town and Lawn) announced to the chamber: "There's been a letter received which does indicate that due to the High Court case and the club's upcoming extraordinary general meeting, the uncertain situation at the County Ground is such that the club is not in a position to honour the outstanding arrears to the council."