YORK City Supporters Trust revealed at their AGM that club owner Jason McGill has rejected a compromise proposal over the club’s share issue.

McGill has asked for the Trust’s 25 per cent shareholding in the Minstermen if he is to continue covering the club’s losses until the proposed move to the new community stadium in the summer of 2019.

But a deal that would see the Trust retain five per cent of its shares and JM Packaging – McGill’s Malton-based business – increase their stake from 75 per cent to 95 per cent has not met with the City chairman’s approval.

As part of the proposal, the Trust would also receive a payment if McGill sold his shares within two years of relocation to Monks Cross, as well as 21.35 per cent of any equity left from the sale of Bootham Crescent once the club’s creditors are met.

It has previously been stated that, with the ground valued at £4.5million by the City of York Council, McGill would be out of pocket to the tune of £3million when the ground is sold in terms of being unable to recoup the money that he has ploughed into the club to cover losses since taking over from the Trust as City’s majority shareholder in 2006.

But the Trust have now resolved to seek an independent valuation of the land, which club auditor Steve Kilmartin, who was representing McGill at the Burton Stone Lane WMC event, claimed would not attract offers in excess of £3million from property developers.

The meeting was attended by 300 people, including City players Jon Parkin and Dan Parslow, as well as sporting director Dave Penney, Foundation manager Paula Stainton and former general manager John McGhee.

Match of the Day commentator Guy Mowbray was also there as a lifelong City fan and Trust member.

Kilmartin, meanwhile, also revealed that McGill had met a £90,000 shortfall in the club’s monthly wage bill last month and added that the City chairman’s previous 2016 estimate of an extra £1million being needed to bankroll the club before the move to a community stadium could now rise to a figure as high as £1.75million.

The intermediary for McGill went on to suggest that he does not anticipate the club breaking even during the first three years at the new stadium, that the current playing budget was probably the highest in National League North and stressed that he did not believe the club would exist if the shares issue was not resolved in McGill’s favour, before moving quickly to stress his comments should not be perceived as a threat.

But James Mathie, speaking on behalf of Supporters Direct, went on to question the club’s big losses when current National League leaders Wrexham are operating on a break-even budget.

Andy Walsh, of the Football Supporters’ Federation, also called on McGill to make public the club’s business plan and management accounts for the last two years and the two years moving forward so Trust members can make a fully-informed decision in any future vote on the shares issue.

The compromise proposal was described by Football Supporters’ Federation chairman Malcolm Clarke as the “right way forward” too and he even suggested that, should McGill agree to the terms and continue to fund the club in ensuing years, then he might be entitled to a stand being named in his honour at the new stadium.

Equally, though, he insisted that if McGill placed the club into administration he would face the consequent ignominy.

It was also highlighted that two previous possible resolutions to the shares issue were never put to Trust members, as the board felt insufficient information was being made available by McGill for an educated vote to take place.

But Trust chairman John Lacy, who revealed that McGill now insisted upon all negotiations taking place through his solicitor, resolved at the end of the evening that a proposal should be put to members and voted upon as soon as “is rapidly possible, regardless of whether it has Jason’s consent.”

Along with Lacey committing to the acquiring of an independent valuation on Bootham Crescent, Kilmartin also agreed to relay, to McGill, Walsh’s request for clarity on and evidence of business plans and management accounts.

Full reports and quotes to follow...