City owe £1.85m

The club, which is fighting a battle against extinction, is shown to have an estimated deficit of more than £1,850,000.

That comprises more than £180,000 of 'preferential credit' owed in tax bills to the Inland Revenue, Customs and Excise, plus estimated employee claims by the club's staff.

Then there is a further £1,572,000 figure for 'unsecured creditors'. Of that amount, the cash needed to pay up the contracts solely of the Minstermen's professional players, plus those on youth terms, totals more than £890,000.

But to ensure the club survives the York City Supporters' Trust, who have lodged the only official bid to buy the crisis club with the administrator Jacksons Jolliffe Cork, are proposing that wages due to the players 'be deferred to assist with repayment'.

The Trust's proposal, along with all the figures, are contained in documents currently sent out by the administrator to City's staff and creditors ahead of a crunch meeting at the club's spiritual Bootham Crescent home in 12 days' time.

The administrator also disclosed that a separate deal to sell Bootham Crescent, which is owned by Bootham Crescent Holdings, could be agreed before the historic creditors' meeting on Monday, March 17.

That's when the next step in saving the club from potential oblivion is to agree a Company Voluntary Arrangement, whereby creditors would end up with a proportion of what they are owed.

For any such deal to be agreed, however, there has to be a majority above 75 per cent of the value of the creditors either attending the meeting or voting by proxy.

The administrator stressed his conviction that the CVA offered the best 'commercial outcome' for creditors. But if it was not accepted then he warned that York City Football Club would fold.

"The Company (YCFC) will be forced into liquidation and the club will cease to exist as a Football League entity," declared the statement.

"To permit the club to continue trading through a new company will also enable its current suppliers to maintain a relationship with the football club, albeit through a new corporate entity."

That's where the Supporters' Trust come in. As revealed last month in the Evening Press the Trust, if successful in their bid, would form a new business called Newco.

The Trust say they would pay up to £440,000 for the business and existing club assets, including a property on Grovesnor Terrace, valued by the administrator at £250,000 of which £220,000 is due to the Royal Bank of Scotland.

Added the statement: "The prospective purchasers (The Trust) are working towards securing more time for the club at its current stadium...until such time that an alternative stadium is in place."

Explaining that talks were ongoing on the sale of the ground, the administrator's statement added: "The administrator has not yet had the opportunity of finalising the proposed sale, but he is hopeful of such sale being agreed before the creditors' meeting."

The key to the continued existence of the club lies with the CVA, the figures for which reveal an illuminating account of what City owe.

The major 'preferential creditor' is the tax-man, the Inland Revenue being owed £98,124. Season-ticket holders, including those who took up the heavily-discounted offer made by football club chairman John Batchelor for next season, are listed among the unsecured creditors to the tune of £94,298.

Other creditors include £28,172 to Northcross, who were responsible for Batchelor's 're-branding' of the club; £9,844 to J Dodsworth (Coaches), who provide the coaches the City teams and fans; £7,200 to Watford for the loan of Lee Cook; £6,853 to Showsec International, who do City's match-day security; £5,507 to Coors Brewers; £4,917 to British Gas; £3,058 to Inside Outside catering; £2,625 to Craven Gilpin & Sons at York Racecourse; £2,191 to British Telecom; £2,143 to North Yorkshire police; £2,250 to York City Supporters' Trust; and £2,112 to City of York Council.

Updated: 11:38 Wednesday, March 05, 2003