The Premier League newcomers announced this afternoon the 43-year-old had stood down with immediate effect.
No reasons have been given for Oyston’s decision and the news takes the gloss off the Tangerines’ dramatic season-opening 4-0 win at Wigan on Saturday.
The club, however, have endured a turbulent summer since winning promotion to the top flight after a 39-year absence last May.
There have been numerous stories of unrest within the camp, including reports of players not being paid bonuses and suggestions manager Ian Holloway could quit.
Holloway has refuted all claims he could walk away but he has had a difficult time in the transfer market due to a strict wage ceiling imposed by Oyston. Only in the past week has he finally been able to add to his threadbare squad, bringing in seven players in quick succession.
Craig Cathcart, Marlon Harewood, Elliot Grandin, Malaury Martin, Ludovic Sylvestre and Chris Basham were today joined by Israel defender Dekel Keinan.
The state of Bloomfield Road has been another serious issue due to redevelopment work that is still ongoing. The club are hastily trying to erect a new east stand to take their capacity to 16,900 but had to accept it would not be ready for the start of the season.
Blackpool should have hosted Wigan last weekend but were granted permission to reverse their home and away fixtures against the Latics.
Without the new stand, the ground’s capacity would be a much reduced 12,000 – a figure which barely covers the number of season-ticket applications the club received over the summer. The dramatic elevation of Blackpool – who were tipped for relegation from the Championship 12 months ago – has caught many at the club by surprise.
Oyston also spoke recently of his disillusionment with the business side of top-flight life – such as dealing with agents.
Oyston, however, has pledged to remain at the club as acting chief executive until the end of the season or a new appointment is made.
That means, in the short term, he will continue to work alongside Holloway in identifying new players and to play a role in the stadium redevelopment project.
A statement from the club added: “The club would like to emphasise that there will be no interruption in the recruitment of players or the work required on the stadium.”
Keinan, 25, has signed a one-year contract with an option of an extra 12 months. He arrives on a free transfer and goes straight into the squad for this weekend’s trip to Arsenal.