York City have pledged their commitment to youth after revealing they expect their next balance sheet to show record-equalling losses.

And in another financial blow the Minstermen are to lose Portakabin as their main sponsors, it was revealed at the fans' forum at Joseph Rowntree School last night.

In December last year, the club revealed a record deficit of more than £700,000 for the year ending June 2000.

At the time, chairman Douglas Craig warned threatened changes to the transfer system could spark a "radical review" of the club's highly cherished youth system.

However, speaking at last night's forum director John Quickfall underlined City's commitment to its much vaunted youth programme.

But with a similar deficit expected for the year ending June 2001, he also announced the club would be tightening its belt in terms of players' wages and the number of players contracted to the club.

"It is a fact that transfer fee income has financed the trading losses over the years," said Quickfall.

"For the current year to June 2001 we are looking at a figure of loss certainly no less than the previous year which was £726,000.

"The losses for the year June 2000 to June 2001 have obviously eliminated a surplus on transfers that took place in the previous two years.

"The board will be taking steps with the manager to drastically reduce the annual expenditure on players wages and that will include a reduction in the number of players under contract to the club.

"We will however be maintaining our commitment to our Centres of Excellence and our youth scholarship programme in order to further develop younger players into the reserve team and hopefully on into the first team.

"We see these younger players as the lifeblood for the continued existence of York City Football Club."

With around 150 supporters at the forum, it was revealed Portakabin will not be renewing their sponsorship when its current deal runs out at the end of the season.

It will bring to an end a ten-year association between club and company.

"We are negotiating at the present time with regards to sponsorship for next season," said Quickfall.

"They (Portakabin) have been doing it for ten years and they feel it is time for a change."

Quickfall defended the club's decision to put in a bid for purchase of the Lumley Barracks site next to Bootham Crescent.

However, he scotched suggestions that the club had offered £1million for the site, which has since been sold to developers Crosby Homes.

"I am not going to tell you what was offered but suffice to say it was not the figure that was quoted in the paper," he said.

"There were good facilities available on that plot of land which would have been of benefit to the club.

"There was room for hospitality usage, bars, a gymnasium and car-parking space.

"We felt at a price it would have been a beneficial asset to the club and it was appropriate to make a bid."

Chairman Craig admitted the club is also monitoring closely the future of Shipton Street Infant School, behind Bootham Crescent, which is set to close next year.

The school building is expected to be maintained for educational purposes but it was suggested part of the site could become available.

"We don't know but we are keeping our eyes on the situation," he said.

It was also revealed last night the board plan to install gym equipment in the City social club.

"We are looking at the possibility of taking out the stage area in the social club and getting a fitness centre located in there for the players," revealed Quickfall.

"We will not be reducing the open area of the social club but purely in the back section."

Updated: 11:25 Friday, April 06, 2001