York City's financial difficulties cannot be blamed on Bootham Crescent Holdings, Douglas Craig claimed today.

The BCH chairman, who is also a former chairman of the football club, made a robust defence of BCH's record at today's annual meeting which saw the football club take control of the ground.

He said that John Batchelor was the only serious contender to buy the club when it was sold for £1 in 2002 and the club was in good shape at that stage.

Craig said the proposals from the Supporters' Trust at that time were "completely unrealistic and unworkable."

As part of the Batchelor deal Persimmon Homes Ltd obtained an option of the future purchase of Bootham Crescent from BCH and purchased immediately a ten per cent share in BCH assuming a valuation of £3.5million.

Persimmon gave Batchelor a separate sponsorship agreement for £400,000 and BCH transferred to the football club the trainees' hostel at Grosvenor Terrace for £125,00 when it was valued at £300,000.

Craig said: "It was estimated that the football club would on June 30, 2002 be in a position whereby the assets more or less equalled the liabilities, not including any possible cash flow benefits from the £400,000 in the Persimmon sponsorship deal.

"The point hardly needs making that the football club was therefore then in an excellent situation - a stable financial condition, good staff and a comfortable position in Division Three of the Football League."

He added: "Since the acquisition of the football club by John Batchelor and subsequently the Supporters' Trust, the football club has been charged no rental for occupying Bootham Crescent and the main training ground for three years.

"It follows therefore that any financial difficulties the football club may be under cannot be laid at the door of Bootham Crescent Holdings.

"The proposed deal by which Bootham Crescent and the training ground is now to be acquired by the Supporters' Trust is only possible because Bootham Crescent Holdings have, in effect, bent over backwards to accommodate the needs of the Supporters' Trust by offering to sell Bootham Crescent and the training ground on very beneficial terms.

"It also has to be borne in mind that Bootham Crescent and the training ground were owned by shareholders of York City Football and Athletic Club plc which then became a subsidiary of Bootham Crescent Holdings plc with the same shareholders.

"The popular misconception that it was, in fact, owned by the supporters is wrong.

"I have been a supporter for over 30 years and I am looking forward to following the fortunes of the club under the stewardship of Jason McGill (YCFC's managing director) whom I hope will make a great success of York City."

Updated: 10:27 Tuesday, January 11, 2005