SHAREHOLDERS in Bootham Crescent Holdings, the former owner of York City Football Club, have been informed not to expect a pay-out until Bootham Crescent has been sold, it was revealed today.

A letter from BCH chairman Douglas Craig sent out to shareholders and leaked to the Evening Press confirms the ground is still owned by the company despite John Batchelor's takeover of the football club.

It states a "conditional contract" has been entered into to sell Bootham Crescent, but it will be "several months" before any deal is ratified.

Mr Batchelor's deal to take control at City has been bound by confidentiality clauses.

However, the Evening Press indicated last month the ground is still owned by BCH, whose majority shareholders are Mr Craig, Barry Swallow, Colin Webb and former club director John Quickfall.

When it was announced last month Mr Batchelor's takeover of the club had been given a legal seal of approval, a statement from commercial law firm Denison and Till, who completed the deal, said the agreement enabled the club to use Bootham Crescent rent-free.

The ownership of the ground is confirmed in Mr Craig's letter to BCH shareholders.

It states: "The board have entered into a conditional contract to sell the freehold at Bootham Crescent, the location at which York City FC play their home games.

"The conditional contract is dependent on receipt of a satisfactory planning consent, the outcome of which will not be known for several months at the earliest.

"The board intends to keep shareholders informed of developments and further information will be contained in the company's accounts which will be sent to shareholders prior to the annual general meeting in December 2002.

"The board does not consider it appropriate to make any distribution to shareholders unless and until Bootham Crescent is sold and should such event occur your board will be writing to you to advise of its intentions."

Mr Batchelor has previously stated Mr Craig, Mr Swallow and Mr Webb, together with fellow football club board member Josh Easby, who is not a director in BCH, will remain in the boardroom during a "transitional period".

Phase one of that period saw Mr Batchelor's takeover of the football club confirmed legally, with phase two, centring on planning issues.

Mr Batchelor has stated a twin application for Bootham Crescent and for the new stadium will be submitted to planning chiefs so that both applications run alongside each other.

Mr Craig's letter also confirms BCH no longer owns the football club.

It states: "The board have succeeded in negotiating a disposal of the company's operating subsidiary, the York City Association Football & Athletic Club PLC, on a basis that leaves the company free from any of its liabilities, past, current or future. The board are hopeful that the deal which they have structured will ensure the continued existence of a professional football club in the city of York."

Updated: 11:12 Thursday, May 09, 2002