Gloucestershire County Cricket Club's £10 million expansion plans have been refused.
Members of Bristol City Council's planning committee turned down the application to expand the Bristol ground at a meeting tonight.
The club wanted permission to build a seven-storey block of flats to help fund a makeover of the County Ground, which it says is a crucial plank in its plans to host matches during the 2019 Cricket World Cup.
But those plans are now under threat after councillors went against their planning officers' recommendation to approve.
Alex Gidman, Gloucestershire's captain, said this week that planning permission was vital to the County's ambitions for the future.
He warned that refusal could consign the club to the second tier of county cricket,
Speaking earlier this week, Gidman said: "Should planning permission for our ground development not be given, this will have a major effect on our ability to develop successful Gloucestershire teams.
"Firstly, it will seriously harm our ability to identify and recruit the better young cricketers in the region. Secondly, it would be bound to harm our ability to retain those players who have already developed.
"All of this is clearly finance-dependent and no development will significantly restrict the budget."