YORK City chairman Jason McGill does not expect to recoup all of the money he has invested into the club following the sale of Bootham Crescent.

The JM Packaging chief also revealed at last night's packed Open Fans' Forum, hosted at York Sports Club on Clifton Road, that he had rebuffed an approach from Tadcaster Albion's owners i2i Sports to discuss the possibility of outside investment.

Having been the club's majority shareholder for more than a decade, McGill's Malton-based business has now ploughed £3million into the Minstermen to cover operating losses on an interest-free loan basis.

He has also signalled his intention to meet the £500,000 annual costs he feels are needed to fund a professional team capable of regaining the club's Football League status until the move to a new community stadium is completed.

But McGill now recognises he might need to forfeit the whole, or part, of that sum of money and addressing the meeting, which was attended by around 300 people, said: "Gate receipts at the club cover 30 per cent of our expenditure and sponsorship money probably another 20 per cent, with the balance left over being put in by myself and the company. I don't really want to have to do that, but somebody has to make it up.

"I am filling the hole and an annual figure of £500,000 will be needed from JM Packaging until we move to a new stadium. That is beyond the original commitment that was made until 2011 and the second one that expired last summer.

"I will reiterate that I won't claim any interest accrued for the money that I've put in, which I am legally entitled to under the takeover agreement with the Supporters Trust in 2006. The value of Bootham Crescent will also not now cover the amount put in by JM Packaging when its sold before the move to the new stadium, because the company is at the bottom of the list of creditors when that happens."

On the possibility of attracting additional financial help to the club and his reasons for deciding against a possible partnership with i2i, McGill added: "It would be nice to think I don't have to continue funding the club by myself, but you have to be extremely careful who comes into your football club.

"I've put my heart and soul into York City since 2003 and, if somebody else came in, they would have to firstly pass a fit-and-proper test, but also meet certain financial criteria, as well as offering a commitment towards longevity and taking the club forward. It can't just be an egotistical thing, as you see at many clubs.

"There was interest from i2i, but I felt it was more of a fishing exercise and, having looked at their Companies House records, I decided against it. I didn't think they would be appropriate in terms of taking the club forward and would have added nothing to York City Football Club."

McGill, meanwhile, cited the example of former Conference and Football League foes Burton Albion, who are now plying their trade in the Championship, of what can be achieved when clubs of similar or lesser means than City move to more modern facilities

He reasoned: "I think Burton Albion's new stadium has taken them to heights that they would have never expected and the new facilities do encourage players to come to clubs. Research also suggests the minimum uplift in crowds following relocation is 30 per cent and I think we have to be a Football League club leading into the new stadium."