HOMELESS York City Knights' uncertain future is back in the spotlight a week before their first home fixture of the League One season after one of their new directors quit saying community stadium terms offered by City of York Council left them "losing money".

York City's owners, JM Packaging, have also announced that talks of a takeover by them have come to nothing.

The stadium saga had already taken a twist after a detailed question-and-answer report on the situation was posted on the Knights' website.

The report says the Knights still want to play this year at City's Bootham Crescent ground - as per the stadium project, which is supposed to see the two clubs share the arena to be built on the site of the Knights' former ground - but, with no agreement reached, next week's game against Coventry will be staged at York RUFC's Clifton Park.

Now, Gary Dickenson, one of four directors brought into the club specifically to help with stadium negotiations, has confirmed he stood down three weeks ago.

He wrote on Facebook: "I worked hard with the council and got on well with them. Unfortunately, the deal we managed to get back on the table was not as good as the previous one. I didn't think we could do any more and I didn't want to be part of objections to planning permission for the new stadium.

"The increased costs incurred at the new stadium and reduced amount of profit available made the club less well off. Don't get me wrong, the council have put a deal together that is generous, the problem is third-tier rugby doesn't make that much money and as it stands in the stadium the club will lose money.

"It will take a good investment and promotions to get a club that can pay its way in a stadium of that size."

A council spokesperson said in response: “The council has received no direct contact from the Knights board on changes to its structure. If and when this is received, we will agree a protocol on which to base discussions.

"The Knights would not lose money and we maintain the terms offer a generous opportunity to the Knights for the club's future success.”

The Knights' website Q&A report contained 33 questions mainly about the stadium saga, plus owner John Guildford's reasons for lodging objections to the stadium plans.

Among the answers, the report says the Knights want to be "part of the project" but it reiterates claims that the stadium deal broke council promises by leaving them worse off.

It claims amendments made by the council to a deal agreed last September meant "average gates would have to increase by at least 100 per cent, in the first season, just to break even".

The council said: "We are disappointed to see the Q&A again holds many inaccuracies. We will not be commenting further."

The local authority in January blamed Guildford for the breakdown in talks, saying they would not work with him again. Since then Guildford has stepped down as chairman, while remaining as owner, with the new board, comprising Dickenson, Dave Baldwin, Stephen Knowles and Neil Jennings, taking on stadium negotiations.

The Q&A claimed the new directors would have signed the final deal that was on the table in October but that offer no longer stood.

It said: "In October the club did not sign the deal as the club would have been making a loss. In February, the (new) board agreed they were prepared to assist to cover this loss, to make sure the project was moving again. However, the offer as of October did not stand in February."

JM Packaging's offer to take over the Knights, meanwhile, was backed by the Knights Independent Supporters Society, but the website Q&A suggested it was "not serious".

It says: "As the club was not for sale, John Guildford asked Jason McGill (JM Packaging managing director and City chairman) to pay all the professional fees. Jason McGill declined this request, therefore they have not gone any further.

"If a buyer was serious about buying a business then they would cover legal/accounting fees, otherwise it would only cause the club expense."

City's owners have now stated: "JM Packaging regret to advise that attempted negotiations with John Guildford to provide a solid foundation and viable future for the rugby club have been unilaterally concluded following confirmation by email indicating he has decided to 'move on'.

"Despite a request received from Mr Guildford for a non-disclosure agreement to be provided to him for signature by the parties thereby facilitating an exchange of financial information he refused to sign the document without payment being made.

"Accordingly the matter is concluded."

Guildford declined to comment further, other than backing the Q&A report.