PHIL Gartside told a court that he lied on live radio about duping Manchester City over a transfer to make a "light-hearted" show "more interesting".
The Wanderers chairman was giving evidence in a civil case against a football agent who feels he as cut out of a separate transfer.
When interviewed by Colin Murray on Talksport last August, Mr Gartside said Wanderers had received £400,000 from selling Dietmar Hamaan in 2006, despite claiming to have never countersigned transfer papers.
He denied this in court, arguing that he "embellished" the story to make it more entertaining for the radio.
He went on to say that all papers were signed for the sale, which Mr Gartside said came about after Manchester City had been guilty of "tapping up" the midfielder.
Martin Budworth, representing claimant Tony McGill at the High Court, referenced the interview and quoted what Mr Gartside said in the interview.
"You said, 'we got £400,000 from Manchester City for a player we never actually signed and that is the truth'," said Mr Budworth.
"The paperwork was never completed was it, just left in a drawer?"
Mr Gartside said: "It was."
He further explained: "Colin Murray, who I have known for some time, was starting a new programme that was meant to be light-hearted.
"I admit I embellished the story to make it more interesting for radio."
"What happened was that Didi Hamaan had been 'tapped up' by Man City and we took the opportunity to make £400,000 by transferring him."
Wanderers, Mr Gartside, Sammy Lee, Frank McParland, Simon Marland and sports agency SEM are being pursued for damages of £390,000 over allegations that they colluded together to cut Mr McGill out of the 2007 transfer of Gavin McCann from Aston Villa to Wanderers.
- Greater Manchester Police fails to record more than 38,000 crimes each year — including violent and sexual offences
- LIVE: Bolton full council meeting
- How did Bolton church pastor fare on tonight's Great British Bake Off?
- Water company accused of putting public health at risk in damning report
- Unauthorised work carried out on listed building
The case continues.
- Read our live coverage of the day's hearing here.