THE plight of York City and other football clubs who have lost ownership of their grounds will be scrutinised by a top level watchdog which could lead to sweeping rule changes.

The ownership of football grounds, and particularly the transfer of ownership to holding companies as happened at City, is expected to be raised in a major report on the game to be published next year.

Watchdog body the Independent Football Commission has confirmed the issue is likely to feature in its first annual public report to be published in January 2003.

The Evening Press understands the York City Supporters' Trust has already contacted the IFC, concerned at the way the club's assets were transferred from the football club to Bootham Crescent Holdings in August 1999.

In doing so, former City and current BCH chairman Douglas Craig, who argued it was done to protect the assets should the club go into liquidation, did nothing illegal and the footballing authorities were powerless to stop it.

However, having transferred the ground to BCH for substantially less than the market value, Bootham Crescent was later put up for sale by the holding company for a fee of around £4.5million.

Writing in a new football report, The State of the Game, published this week, Professor Derek Fraser, chairman of the IFC, states: "There have, of course, been a number of clubs where ownership, possible sale, change of status and financial viability have been much discussed during this last year.

"The events and developments surrounding, for example, Carlisle, York City, Bradford City and Wimbledon have been topics which have been brought before the IFC by supporters and others.

"The question of who owns a club and how it is governed in the interest of all its stakeholders is clearly a matter of central concern."

The IFC is less than a year old and was set up by the Government on the recommendation of the Football Task Force.

It has an independent role in reviewing the rules and regulations of football's governing bodies relating to financial and business matters.

Although it can only make recommendations for change to the FA, the Premier League and the Football League, the IFC carries considerable clout with the Government.

Meanwhile, current City chairman John Batchelor insists his pledge to give two seats in the boardroom to representatives of the Supporters' Trust is moving closer to realisation after renewed calls for him to fulfil his promise.

"As soon as the situation at Bootham Crescent is resolved we will be up and running," Batchelor said.

"Without wishing to breach any confidentiality agreements, it is very difficult to give exact dates.

"But everything is moving in the right direction. It is getting closer."

Batchelor is still locked in negotiations with the City of York Council over a suitable site for a new ground, while builders Persimmon have submitted a planning application to build on Bootham Crescent.

Steve Beck, of the Supporters' Trust, which has also been promised a 25.1 per cent stake in future ownership of the club, said: "Six months after the new chairman was appointed, it is not unreasonable for the supporters to want delivery of share ownership and seats on the board as originally agreed.

"The supporters and the community are the most important stakeholders in the football club and that should be reflected in the ownership and operation of the club."

Updated: 10:47 Saturday, September 14, 2002