COUNCIL officials have severed financial ties with York City Knights amid renewed doubts over the club's ability to play at Bootham Crescent next season.

City of York Council said this afternoon it would "not be continuing any further financial relationship with the rugby league club in its current operation".

The council said in response to a Freedom of Information request in April that it had committed to offer the rugby club up to £100,000 in each of 2015 and 2016.

The council said on Monday that it had paid £56,000 this year.

York City FC chairman Jason McGill said on Monday, in a private email leaked to The Press, that "until there is clarity and understanding with the delivery of the new community stadium, York City Football Club is not in a position to discuss any possible extension for York City Knights to play at Bootham Crescent".

York Press:

He continued to say in the email to Knights owner John Guildford: "Any subsequent discussions will be held directly between York City Football Club and City of York Council.”

He told The Press he didn't wish to make further comment other than to refer to the recent judicial review application by lawyers for Vue over the planning permission granted for an expanded cinema next to York's proposed stadium at Monks Cross.

He added: "I believe the council has a duty to find the Knights an alternative venue if Bootham Crescent is unavailable."

The council said in June that agreements had been reached to allow the rugby league club to continue at Bootham Crescent as part of its stadium scheme before both clubs move into the planned new arena on the site of the old rugby ground - with just the legal paperwork needing to be finalised.

A spokeswoman said today that, prior to 2015, the authority had agreed a financial settlement with the Knights which included licence to use Bootham Crescent, and, following last year's elections, the council agreed to uphold this previous arrangement. The settlement covered certain revenue streams forfeited by the Knights between losing their old Huntington Stadium ground and the new stadium being ready. Those contracts run out at the end of the current season.

"On expiration of this agreement and due to the uncertainty of the Knights’ current ownership and ongoing trading, the council will not be continuing any further financial relationship with the club in its current operation,” she said.

“Should the ownership and ongoing operational matters regarding the club be resolved to the council’s satisfaction then it will review its position.

“City of York Council and York City have an agreement (in principle) for York City Knights to continue to use Bootham Crescent for the 2017 and 2018 season until the opening of the new community stadium.  This requires adequate resolution of ongoing ownership matters.

“The authority firmly believes there is a future for professional rugby league in York and remains fully committed to supporting any new potential buyers and entities for the Knights."

Takeover talks for the rugby league club have begun, with Mr McGill also showing an interest in taking it on, after Mr Guildford said he would have to close it down claiming the ground issues made it unviable.

The council spokesman added that the authority wished James Ford and his players the very best for the remainder of the season as they chase promotion from League One, and it remained fully committed to delivering the community stadium and leisure facilities project.