York Wasps could have unwittingly been trading insolvent for a number of years after failing to maintain payments to City of York Council.
The council granted the Wasps a 66-year licence to play rugby league at Huntington Stadium when they moved from their Clarence Street ground in 1989.
It included the condition that the licence would be revoked if the club did not maintain rent repayments.
It has now emerged the club were issued with a writ for £46,000 some years ago, of which the current administration were unaware until last year.
That meant the licence, which had cost hundreds of thousands of pounds, was revoked and, consequently, was no longer an asset.
Although it had already depreciated in value, while it remained on the balance sheet the club were legally solvent.
They have now agreed a new five-year licence with the council.
Ann Garvey said she was completely unaware of the situation when she took on the full-time role of chief executive last year.
However, she insists she is not pinning blame on any individuals and does not know when the problems originated.
Meanwhile, Garvey has responded to issues raised by supporters following the club's proposal to enter into a Company Voluntary Arrangement.
One question related to the money which the club received from their Challenge Cup tie against Super League club Warrington Wolves last season.
Garvey explained the money had been spent on saving the club from the threat of a winding order from Indian restaurant owner Khaliqu Zaman, to whom they owed £15,000.
The remainder was spent on players' wages.
She also explained that the emergence of a further £75,000 debt to the Inland Revenue, shortly after the club had fought off a winding up petition for £70,000, was no surprise.
She said: "The order was for £70,000 which was paid but I'm sure everybody knew there was more outstanding."
It was also pointed out by a supporter that, at a recent shareholders' meeting, they had been told the debts had almost been cleared.
"The old debts have been cleared. Only two debts are hereditary, the others are all current ones which are due for payment," explained the Wasps' chief.
Responding to criticisms from some Supporters' Club committee members, she said members of the committee were welcome to join the board if they were prepared to put money into the club and buy the required number of shares.
Garvey also invited anyone with any queries about her handling of the club to spend a day in the office.
"Gary Hall (commercial manager) said he was one of the biggest knockers of the club until he got involved and realised how difficult a job it was," she said.
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