JASON McGill has returned to York City as chairman and will continue to cover operating losses at Bootham Crescent.

The 75 per cent majority shareholder is back after City's board requested his financial support, having decided that it would be unworkable to expect the club to run on a break-even basis next season.

McGill had previously stood down from his position in the boardroom after the Golden Share proposal, which would have seen him acquire the Supporters' Trust's 25 per cent stake in the club, was rejected following a vote by the fans' body's members in March.

He subsequently put his shares in the club up for sale and added that he was unwilling to foot the bill for any losses beyond the end of last season, adding that the club would need to be run on a break-even basis, subject to the wishes of any potential new owner that declared an interest in acquiring his stake before an April 30 deadline.

The Trust stated that they felt the club should endeavour to break even, regardless of the ownership structure, but it is believed the financial pressures arising from the complete withdrawal of centralised parachute payments for the club's third season outside of the Football League and the honouring, or possible termination, of the second year of 11 existing playing contracts, made such a budget switch unrealistic to implement from one campaign to the next.

Other costs, such as maintenance expenditure on Bootham Crescent and the ongoing legal costs incurred prior to relocation to Monks Cross, continue to drain the club's coffers, although the Minstermen are planning a number of ventures to maximise the income-generating opportunities of the last season at their 86-year-old home, which should serve as an offsetting measure.

It is intended then that the community stadium will help the club reach a sustainable level, with its greater income-generating opportunities and more modern facilities.

McGill has also confirmed his commitment to the continuation of the club's academy, following the loss of central funding, but The Press understands that parents of scholars will be asked to raise £600 in sponsorship during the year to help contribute to the running costs.

The Malton-based businessman added that he appreciates any further money he contributes to cover the club's losses will be done at his own risk, should the equity left in the sale of Bootham Crescent after other creditors' claims are met not be sufficient to cover the loans his company have made to the club on an interest-free basis.

In an exclusive statement to The Press, outlining the reasons for his return, McGill said: "York City's board approached me after the April 30 deadline had lapsed, following the lack of any suitable proposals to acquire JM Packaging interest's in the club and asked for help. The board, working in conjunction with Peter Rookes (York City financial consultant), had been attempting to formulate a break-even budget for season 2018-19, but made it clear to me that this was unachievable if the club was to remain competitive, aspirational and ambitious.

"I was asked if JM Packaging would fund the club until, at least, the expected June 2019 move to the new Community Stadium and if I would become chairman once more. I had put my interest in York City for sale following the successful vote against handing over the Trust’s 25 per cent shareholding in York City to JM Packaging, in return for the company’s continued financial support until occupation of the new stadium.

"I had thought this only fair and equitable, however some believed there to be some ulterior motive to the offer. There was none and there continues to be none, as perhaps demonstrated by one party, who expressed an interest, indicating that the shares were worthless.

"Since there has been no sale of the JMP interest and, in my desire to give the club the best chance of success, I have decided to further fund the football club. This will enable York City to maintain full-time status, help keep the academy and continue the meaningful community work of the Foundation.

"The monies contributed by JM Packaging to the football club from July 2016, when the new stadium was to have been completed, will hopefully be repaid, depending on the negotiated value at the time, from the sale of Bootham Crescent, but if there is insufficient equity then any monies outstanding will have been used to fund York City at my risk and, if lost, then it was my decision to do so. I will, however, ensure that the football club is protected for future generations and will make every means available to prevent any action from any individual or individuals from undoing or taking credit from all the hard work that has been undertaken over the last 12 years to give York City a fresh start in the new Community Stadium.

"I am looking forward, together with the rest of the board, to enjoying everything the new stadium will bring to the football club for many seasons to come. Now that the immediate off-pitch financial uncertainty has been resolved, the board must now focus on helping provide the manager with the necessary support to produce entertaining inspiring performances and successful results that ultimately lead to an upcoming promotion season.”

In a further statement, also issued exclusively to The Press, the board outlined their reasons for requesting McGill's return to the fold.

It read: "The board of directors carefully examined a number of possible scenarios in respect of operational financial requirements for the 2018-19 season and sought advice from each of the shareholders as to any assistance that would be provided. Consideration was given to the possibility of constructing a break-even budget although, even after adopting a less than prudent approach to anticipated income, it was demonstrably clear the net funding then available for playing costs would have necessitated adopting a part-time structure.

"The board therefore had to consider the existing commitments to contracted players, which are in excess of this reduced budget availability, together with the challenges of numerous practical aspects as to how a transition could be managed including provision of suitable training facilities. Ultimately, it was determined this possibility was not practical as it also included the significantly higher risk of spiralling down the league which resulted in further discussions with the majority shareholder.

"Whilst the financial loss is anticipated to be greater than in previous seasons following the withdrawal of various funding streams and one-off sources of income, Jason McGill indicated a willingness for his company to finance the club during 2018-19. The directors are extremely grateful to Jason for his unswerving loyalty and absolute commitment to the club in providing the manager with an ability to prepare for the new season and look forward to welcoming him back as chairman."