A LEGAL challenge to Bootham Crescent Holdings, owners of York City's football ground, has been ruled out by the administrator currently running the club.

In a report sent out to more than 1,500 creditors this week, David Willis of Jacksons, Jolliffe Cork, said the lack of time and the high costs involved would prevent any investigation into the transfer of assets, such as the ground, from City to BCH.

Furthermore, responsibility for any investigation would have to be carried out by a liquidator and if the Supporters' Trust offer to take over the football club is accepted liquidation will be averted.

Willis also advises that the directors of BCH would 'vigorously' defend any action against them.

In his report to creditors, Willis said he had been advised the transfer of Bootham Crescent, the club's training ground, the club house on Grosvenor Terrace and other assets to BCH took place at 'book values'.

That means an asset is valued according to the accounting records of the firm owning it.

He confirms BCH granted a 25-year lease to York City to continue playing at Bootham Crescent from June 2000 at an annual rent of £40,000 and in April 2002 City's share capital was sold to John Batchelor for £1.

He also confirms the 25-year lease was 'surrendered' and replaced with a lease that now expires in June this year which gives the club no protection from eviction after June 30.

Willis states BCH granted City an option to purchase certain assets, thought to include the floodlights at Bootham Crescent, and the training complex back for £1, with the house on Grosvenor Terrace transferred back to the club for £125,000.

Willis maintains the transactions could be investigated by a liquidator but said 'substantial funds' would be required and no such monies were available.

He writes: "The purpose for which the administration was granted was the better realisation of assets than would be achieved in liquidation.

"If the (company voluntary) arrangement is accepted by creditors and the arrangement completes successfully there can be no investigation into these matters as such investigation would fall to a liquidator, and liquidation will be averted by means of the arrangement."

He said if creditors insisted on a probe they would have to vote against the Trust's plans which could ultimately spell the end for the Minstermen.

"It should be borne in mind that it is unclear as to whether any action by a liquidator would be successful or unsuccessful," said Willis.

Significantly, Willis revealed the 'former' shareholders of BCH had given an 'indication' that they may make a 'substantial' payment to the Trust.

"The administrator assumes that such payment would not be guaranteed should the conduct of such shareholders come under investigation and has been further advised that any action against the former directors/shareholders of BCH would be vigorously defended."

The document was posted before John Quickfall's resignation from the board of BCH was announced this week.

As far as the Evening Press is aware, the remaining majority shareholders in BCH still remain on the board of the company.

BCH chairman Douglas Craig today said there would be no statement on the creditors' document.

Updated: 09:34 Saturday, March 08, 2003