CHAIRMAN Steve Beck today welcomed the Football League's rubber stamping of the fan take-over of York City but warned the fight to stabilise the club's finances was far from over.

Beck described securing League approval of the Trust's rescue package, finally received after a tense, 24-hour wait, as the 'jewel in the club's crown'.

The much sought-after green-light ensures the club's membership of the Football League - all clubs have a single share - will now be transferred from the old York City, still in administration, to the new company set up to replace it.

Without that treasured share transfer the club would have lost its Football League status. With it, substantial funds due to the club but held back by the League will now be released.

Those monies could prove particularly useful should the Minstermen go on to achieve promotion via the play-offs.

It emerged today a bonus scheme devised by former chairman John Batchelor which the new board must adhere to could cost the club as much as £100,000 should City win the play-offs.

Commenting on securing League approval, Beck said: "Since we acquired the club this is something we have been working towards and it means we are now officially members, subject to some final documentation, of the Football League.

"Without the transfer there would have been no Football League matches, while financially it will also help the situation and we can start to move forward.

"It is one of the final pieces in the jigsaw, the jewel in the crown, and it is obviously a big relief because it was one of those things we didn't have a great deal of control over."

The share transfer means the new City can expect to bank at least a six-figure sum once the monies retained by the League are released.

However, Beck was anxious to make clear those funds had already been earmarked to help cover costs as part of the Trust's rescue package for the club.

"People may think that since taking control the £20,000 per week the club was losing has disappeared. It hasn't," he explained.

"We have obviously taken steps to cut costs but it is still an extremely difficult situation and that means everything we receive from any source, be it the Football League, new sponsors or bigger gates, is going to be greatly needed and gratefully received."

Despite the projected cost of promotion, director Sophie McGill insisted the club was desperate to help manager Terry Dolan's team achieve their goal.

"Everyone at the club is pushing for promotion," she said.

"It would a be tremendous achievement given what has happened, a fairytale ending, and a reward for the fans who have endured so much."

The need to meet the bonus demands would be tempered by the fact play-off success could realise significant gate and television revenue, while promotion would also see Football League payments increase by £80,000.

Beck was today set to attend a meeting of all 72 League chairmen in Leicester when moves to punish clubs who go into administration with a deduction of points, or even relegation, were due to be unveiled.

The proposals follow concern that some clubs have used administration as a way of escaping debts and thereby have secured an unfair advantage over their more cash-conscious rivals.

Today's meeting was presented with three options for sanctions for clubs entering administration:

an immediate deduction of six points;

an immediate deduction of 12 points;

relegation at the end of the season.

Other effects of the League's proposed new insolvency policy would see any club that spends an entire season in administration relegated, and if a club goes into administration twice in three years they would have their League membership withdrawn.

As well as City, Leicester, Notts County, Port Vale, Ipswich, Barnsley, and Huddersfield have all been in administration this season - almost a tenth of the League's total membership of clubs.

Although the Trust inherited City's financial problems and administration was instigated by Batchelor, Beck conceded there was a need for a deterrent.

However, he said he would reserve judgement on the proposed penalties until the issue was discussed at today's meeting. The proposals will not be voted on until the organisation's annual general meeting on June 5.

Updated: 11:04 Thursday, April 24, 2003