Financial losses outlined - but chairman Jason McGill won't sell York City shares in "foreseeable future"

With City’s financial auditor Steve Kilmartin acting as a spokesman for McGill, a statement given to The Press went on to suggest the Malton-based JM Packaging businessman might have to reconsider covering the club’s operating losses if York City Supporters Trust do not relinquish their 25 per cent shareholding in the Minstermen.

McGill also revealed in a statement of his own that the club suffered £630,000 in operating losses during the 2016/17 season when former manager Jackie McNamara was given a top-three budget to deliver a swift return to the Football League and successor Gary Mills’ recruitment efforts were bankrolled in an unsuccessful attempt to stave off relegation to regionalised football.

The figures mean the club’s 75 per cent majority shareholder has, up to June 30, 2017, pumped £4million into the club to cover the losses since he took over ownership from the Trust in 2006.

City’s share issue is to be debated at the Trust’s annual general meeting on Monday, February 5 at Burton Stone Lane Working Men’s Club (7.30pm).

Kilmartin said: "The chairman indicated, almost two years ago, that the club would need funding of £1million to enable football to be played at the new Community Stadium which, therefore, requires the issue of £1 million ordinary shares of £1.

“In this respect, it was the Trust who referred to 'giving up their 25 per cent stake' in the club to enable the chairman to fund the whole of the amount required as they had no financial resource to provide their obligation. The debt owing to the chairman's company was £1.856m at July 1, 2011 and £5.809m at June 30, 2017 (including interest McGill has agreed to waive).

“The chairman has already provided unequivocal confirmation to the Trust that he is willing to provide the necessary finance that should enable football to be played at the new Community Stadium. He has also advised he has no intention of selling his shareholding in the foreseeable future.

“The club requires funds to ensure it is able to settle its liabilities on a monthly basis - which the chairman has provided - although if the Trust refuses to support the share issue this is a question that would have to be addressed to their chairman."

Equity in Bootham Crescent is not now at a sufficient level to guarantee McGill will receive all the money he has put into the club following the sale of the ground ahead of the move to the Community Stadium.

But Kilmartin could not confirm either whether McGill would look to sell his shares at some point in the future for an amount in excess of the money he has put into the Minstermen.

As part of JM Packaging’s takeover of City 11 and a half years ago, the Trust, who had been 100 per cent owners, agreed “it will circulate a statement to the public stating their intention to help supporters raise £50,000 per year for York City”.

But the supporters’ body’s financial contributions have been negligible in the intervening period, with McGill adding: "During the last two years, numerous meetings have been held with the Trust and it was abundantly clear they did not have, nor could they possibly raise, the necessary finance despite pledging in 2006 to ensure the club received at least £50,000 each year in sponsorship from their various initiatives. This commitment should have provided £600,000 to the club.

"Inevitably, this has necessitated substantial additional funding having to be provided by my company including £630,000 during the 12 months to June 30, 2017. In May 2016, I confirmed that, if the Trust could not deliver the necessary finance required for the share issue, my company would do so to ensure football could be played at the new stadium.

"I also provided numerous other confirmations demanded by the Trust such as the club not changing its traditional colours or playing outside the city boundaries which, as a lifelong supporter, were readily endorsed. I also offered to return the Trust's 25 per cent shareholding if the club did not play a game at the new stadium - yet the Trust's board failed to even consult their members for a mandate to approve these proposals.

"It is vitally important for supporters to understand the Trust stated in October 2017 that their board was unable to give consent to the request for its authority to increase the club's share capital despite there having been more than ample time to determine their members’ views.

"The survival of our club is, therefore, in the hands of the Supporters Trust members and I would urge that, after vigorous debate, at least a show of hands for those 'in favour' and those 'against' is held at the AGM to demonstrate to the Trust chairman the strength of feeling that, I believe, is behind the club being able to continue with the necessary financial support from my company."

In response to McGill’s statement, Trust chairman John Lacy said: “We would point out there are a number of inaccuracies and misunderstandings and these will be addressed at the meeting so members have as much information as possible.”