The future of Brighton and Hove Albion will be put in jeopardy if it is forced to stay at the tiny Withdean Stadium, whatever its league position.

Chief executive Martin Perry said the club could not cover its losses unless it moved to its new purpose-built ground.

He told the public inquiry examining the controversial plan, which began yesterday, there was no alternative to building at Falmer and there was no stand-by site.

Mr Perry said the club expected to have spent £2 million pursuing the planning application by the time the hearing ends.

"Quite simply, the football club cannot continue to finance the loss at Withdean while it looks around and tries to find another site and fund another application.

"I believe if the application fails, the future of the club is in jeopardy.

"We do not have a contingency plan. There is no other site. This is it. We are seeking a planning application for Falmer because that is the only option open to us."

Mr Perry, the first witness to give evidence at the Hove Town Hall hearing, said he was confident the club could fund the scheme.

He would not reveal detailed costings because contractors could use the information when tendering to build the planned 22,000-seat stadium.

Mr Perry said the business case had been tested and there would be significant savings by building the stadium in one go, rather than a number of phases as first proposed.

"It is not possible to demonstrate we have sufficient funds until we have a planning permission. It is a chicken and egg situation."

Mr Perry said the club had agreed it would not take possession of the land at Village Way North or start building until it could show the money was in place.

The hearing heard the club is not relying on extra development to cover the costs of building the stadium and that the £48 million "landmark" project would boost the economy of depressed East Brighton, creating 600 jobs during and after construction.

Another 200 jobs would be created indirectly.

Mr Perry said other sports, schools and the club's award winning community programme would benefit from the stadium.

The Village Way North site is inside the Sussex Downs area of outstanding natural beauty (AONB) but outside the boundary of the proposed South Downs national park.

A coach park, on adjacent land owned by Lewes District Council, also being examined at the hearing, is inside the park's boundaries.

Robert White, representing the council, the only objecting organisation to speak on the opening day, said the project represented a major extension of Brighton and Hove into the South Downs.

He said planning decisions in AONBs should favour conservation and said the stadium would cause "very great visual harm."

He added: "Any site chosen for a football stadium of this scale is likely to give rise to some planning objections. That is not the point. The critical question is whether the alternative sites would give rise to the same planning objections or similar level of harm.

"The evidence suggests there are sites located within and without the urban area which can better meet the need and give rise to less harm. These include the current ground at Withdean."

Supporters and objectors will speak during the inquiry, scheduled to run until April 8.

The inspector's report and recommendations will be sent to the Government in the summer. A final decision is not expected until September or October.