COUNCIL chiefs say they have reached an agreement with York City FC, allowing rugby league to continue at Bootham Crescent until a new community stadium opens at Monks Cross.

But City of York Council immediately added a proviso - that the agreement, allowing rugby to continue at York City’s ground for the 2017 and 2018 rugby league seasons, is subject to an ‘adequate resolution of on-going ownership matters.’

It added: “These matters will need to be resolved prior to any implementation of the licence for the 2017/18 seasons.”

As reported previously, York City Knights owner John Guildford has declared he is leaving at the end of this season, arguing groundshare issues at York City’s Bootham Crescent and with the community stadium scheme made the current rugby league club unsustainable.

Unless there is a takeover, it therefore seems probable the club would close down, with one proposed buyout having already come to nothing. Former director Gary Dickenson last week pulled out of talks, saying the only viable way forward would be for York City’s owners to take on a new rugby league set-up.

City supremo Jason McGill has expressed an interest in adding a rugby club to a “Team York” portfolio but The Press understands it is unlikely he and Guildford would have meaningful talks about a takeover, so that route would rather involve a new club starting, should the Rugby Football League grant them membership.

Mr McGill declined to comment today on the council statement, while Mr Guildford said the council had a legal obligation and commitment to the Knights to provide an appropriate ground at which it could play home games until the new stadium was ready, or until October 2020 - which ever was the earlier.

“It’s good to hear the council have now reached an agreement with York City football club to enable them to keep to the commitment in place and clear up any uncertainty for the Knights to play home games, going forward,” he added.

As reported previously, the community stadium scheme is facing further delays after a legal challenge by rival cinema Vue to a council decision to grant planning permission for an extended cinema adjacent to the stadium.

The council said on August 15 that prior to 2015, York City Knights had agreed a financial settlement with the authority, which included license to use Bootham Crescent for its home matches.

It said that on expiration of this agreement and due to uncertainty over the Knights ownership and trading, the council would not continue any further financial relationship with the club in its current operation.