BC Deal finally revealed!

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BC Deal finally revealed!



On Wednesday 4 February 2004 it was sensationally announced that an agreement has been reached that allows the club to play at Bootham Crescent for the foreseeable future. However the details were not given due to legal reasons.
 
In the last 4 months there has been much speculation however the details were finally revealed to shareholders of Bootham Crescent Holdings (BCH) in a letter sent out on Thursday 10 June.
 
The deal is not yet done, according to BCH, the letter states "no legal or binding agreement has yet been signed between any of Directors or shareholders in BCH and York City and negotiations are still underway", but it has been agreed.

A summary of details are as follows:
 
* York City FC have successfully finalised negotiations for the purchase of a 75.89% majority shareholding in BCH, who own Bootham Crescent and the training ground. 
 
* The amount to be paid is £2.1 million. This will be funded by a loan (subject to many clauses) of £2 million from the Football Stadia Improvement Fund (FSIF) and £100,000 from the Club/Trust.
 
* Persimmon's deal to build 92 houses on the Bootham Crescent site has been cancelled.
 
* The 3 BCH directors will remain as shareholders, as there is not enough money at the Club's disposal to completely buy them out, however it is the Club's aim to do so in future.
 
* There are various milestones that the club must achieve. If it does not do so then financial penalties will be imposed. City must be at a new stadium by 2014/2015, so the Club has a maximum of 10 seasons remaining at Bootham Crescent.
 
* Persimmon have received compensation for the cancelling of the deal.
 
* Douglas Craig will receive £1.2 million, with Colin Webb and Barry Swallow each receiving £200k.
 
* A BCH EGM will take place on Thursday 6 July at 09:30 for shareholders to approve that BCH be re-registered as a private company and also to approve the relevant clauses in its Memorandum of Association. This is necessary to ensure that BCH cannot charge the Club any fees to stay at Bootham Crescent. Also, without this, the FSIF would not be prepared to grant their loan to the Club on an unsecured basis.


Discuss the deal on the forum

[Friends of BC]

The Friends of Bootham Crescent (FoBC) today welcomed the deal which secures the rightful home of York City FC for the coming ten years. The group also congratulated the York City FC board and everyone else who has helped to broker this very complicated deal which helps to safeguard the future of YCFC

Spokesman Ian Savage said “Throughout last season York City faced the threat of eviction from Bootham Crescent. A very complicated series of agreements with a number of parties appear to have been made which will secure the long term future of York City and where they will play.

“We are pleased that the City of York Council has agreed to work with the football club by helping them to find a suitable location to build a new ground.

“Although FoBC is disappointed that York City will be vacating Bootham Crescent in ten years, the group has always stated we would accept a move away only to a new home superior to Bootham Crescent. We fully expect a new ground would fulfil this wish. We also hope this new stadium will have easy access and excellent transport links and urge the Council to ensure these issues are addressed when working with the club to find a suitable location”.

FoBC urge the major shareholders in Bootham Crescent Holdings (BCH) - Messrs, Craig, Webb and Swallow, and local house builders Persimmon Homes - to plough some of the massive profits they are making from this deal back into the football club. This would help to defray the costs of the interest payment on the loan; a payment that amounts to rent to stay at a ground that the Club once owned and for which the club received a token payment well below its market value

FoBC are disappointed with the “compensation” which Persimmon is to be paid for a cancelled deal which is not cancelled, but postponed for 10 years. However, if this payment is recompense for the £400,000 "sponsorship" which Persimmon paid to John Batchelor, we would urge Persimmon to reconsider, and seek to recover its money from Mr Batchelor, who did not pass the full amount to York City as Persimmon seem to have expected.

The Friends of Bootham Crescent would like to put on record their congratulations to the whole of the current York City FC board for their tireless efforts to secure this deal which a few months ago seemed impossible.

[The Post Master General]

Further news about the annoucement today:

Jason McGill has revealed that the club will submit a new planning application for the redevelopment of Bootham Crescent alonsgide Persimmon Homes. According to McGill the planning application would provide surety for the Football Stadia Investment Fund.

It also provides proven equity for a "crisis fund", which McGill says would allow the club to bring in a few extra players in a time of crisis, such as the end of last season. The club was unable to do this at the end of last season, and didn't have the money because of Batchelor's non - payment of the money he agreed to pay the club. Some City fans believe that was a big factor that led to City's relegation.

It was also revealed today that City will be asking all shareholders in Bootham Crescent Holdings to hand back their shares for £1 each at a meeting on July 6th.

McGill also explained that the reason for a 10,000 all seater stadium was being looked into because the club want to get to the First Division (now known as "The Championship") in the long term, and that is the requirement for First Division stadia.