NEWLY-APPOINTED Supporters' Trust board member Malcolm Slinger has assured fans that JM Packaging cannot make any profit from the sale of KitKat Crescent if a motion is passed to make the Malton-based company majority shareholders of the club.

Slinger has indicated that a list of Trust stipulations, agreed with JM Packaging as part of the proposal that Trust members will vote on at a June 6 meeting, protect the club from any other party profiting from the sale of the football ground.

JM Packaging would, under the proposal, receive 11 per cent interest repayments on a £650,000 loan on the assumed sale of the ground when the club are in a position to move to a new stadium.

But the loan itself would then be waived.

The club's ground is believed to be worth between £4million and £5million with planning permission and Slinger said: "This value would be used to build a new 10,000-seater stadium jointly with York City Council and other stakeholders.

"I think it is important to stress that the funding package prohibits Jason McGill or his company, or anyone else, benefiting from the value of the club's ground. All profits from the sale of the club's ground will go into the new stadium."

Trust chairman and club director Steve Beck added that he believes there can be no financial incentive for wanting to become the club's owners.

The Football Foundation, who have loaned City £2million, currently have first charge on KitKat Crescent and Beck said: "If there was any money to be made out of this club then there would be a queue outside the front door of people willing to invest money but that has never been the case."

Should JM Packaging become the club's new 75 per cent (plus one share) owners the Trust would be given first option to buy some or all of their shares at a par price if they decide to sell.

Under the proposal, JM Packaging would also need Trust authority to issue any new shares in their company or sell any substantial part of their businesses.

Other conditions include the Trust being required to give authority for any additional borrowings exceeding £100,000, except in the case of replacing existing facilities, and having the right to restrict the transfer of club shares to Douglas Craig, John Batchelor, Colin Webb and Barry Swallow or anybody connected with the former City chairmen and directors.

Likewise, the sale or lease of Bootham Crescent and the club's training facilities for any change of use and the submission of any planning application would need Trust permission, as would any agreement to use or develop another site to play the club's home matches.

Subject to approval from football's authorities, the Trust would also be the named recipient of any funds arising from surplus assets in the event of the club being wound up after settlement of creditors and shareholders.

If that approval is not received, then the surplus would be given to the FA Benevolent Fund or a local football or charitable organisation.

The Trust would also have the right to appoint up to two people on a six-strong board and, should the number of club directors increase, the Trust's presence would do as well on a pro-rata basis.

Updated: 09:30 Tuesday, May 23, 2006