Dick Knight tonight stepped down as Brighton and Hove Albion chairman to make way for multi-millionaire property developer Tony Bloom.

The move ends Mr Knight's 12-year reign at the helm of the Seagulls and sees him become instead the club's life president.

It has also been revealed that Mr Bloom is to fund the vast majority of the Falmer Stadium development - the cost of which has now spiralled to £93 million - through interest-free loans.

Businessman Mr Bloom takes over as chairman while becoming the Albion's biggest shareholder by converting into shares £18 million of loans he had made to the club. He now owns 75.61% of Albion.

He will fund the Falmer development by lending the club tens of millions of pounds more in unsecured loans, although the Albion will not reveal exactly how much he will hand over.

Those loans are due to be repaid in 2023 but Mr Bloom could convert them into shares of the club which would see him control more than 90% of the club.

Mr Knight, who still owns 6.42% of the club, said: “This is the natural progression for the football club. Tony's investment will mean no need for external funding, which is absolutely superb news for the club and its fans.

"Being chairman of the Albion has been the most rewarding period of my life. To be able to give something back to the club I've supported since I was a boy has been a privilege and I've enjoyed it immensely, all of this while we fought the long and relentless battle to secure our new home against all the odds.

“The club is now financially secure, the stadium is on its way and the club now has the opportunity to reach its true potential.

“We have come a long way from what Bob Pinnock, Martin Perry and I inherited twelve years ago and I am proud of what we, the directors, staff, players and fans, have all achieved together.”

Mr Bloom paid tribute to the outgoing chairman.

He said: "Nobody should be in any doubt that he saved the club from almost certain extinction at a time when no-one else was willing to come forward.

“Under his leadership we have had some very memorable times including our successful nine-year battle to secure the go-ahead for Falmer.”

The arrival of Tony Bloom’s millions has saved the club's Falmer Stadium dream, Albion chief executive Martin Perry said.

Without the entrepreneur's interest-free long-term loans, the new stadium could not have been built.

Mr Perry, speaking on the phone from his holiday in Egypt, said: “It has taken all the uncertainty out of the development.

“It is fantastic because the funding is secured, it's there and it's available to pay for the building of the stadium and to cover all the costs now.

“It gives us our stadium. We would not have the stadium without him. In the current financial climate with banks not being prepared to lend, there was no other way of funding the stadium.

“We suffer losses while we are at Withdean and those are being covered as well, so we are in a fantastic position.

“It's massive news for the club.”

Leave your messages of thanks below to Dick Knight for his efforts for Albion over the years.