Official statement from the Football Club

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OFFICIAL STATEMENT
From the Club's Board of Directors.

The Board of York City Football Club has completed negotiations for the purchase of the majority shareholding in Bootham Crescent Holdings whose assets include; Bootham Crescent football ground, the Wiggington Road training ground and the ground at Bumper Castle.

This will be achieved by the acquisition of the majority share holding of Bootham Crescent Holdings and the shares in BCH held by Persimmon Homes plc. The Club will own 75.89% of BCH shares. To enable the deal to succeed, with the funds available, the three former Directors of BCH will retain a total 8.5% minority share holding in BCH, but it is the intention of the Football Club to acquire the remaining residual shares held by the former Directors over a 10 year period when funds become available to the Football Club.

The current directors of Bootham Crescent Holdings will have no involvement in York City Football Club and will have limited rights due to their minority shareholding.

The deal has been brokered by the Board of Directors of the Football Club and involved 5 key parties:-

* The Board of York City Football Club
* The Football Stadia Improvement Fund
* Bootham Crescent Holdings
* Persimmon Homes
* The City of York Council

All negotiations have been conducted in a highly professional and detailed manner and all parties expressed their desire to see the continuation of York City Football Club at Bootham Crescent.

Details of the Deal

Since early summer 2003, the Board of York City Football Club has been negotiating and arguing the case for provision of funding from the Football Stadia Improvement Fund, a company within the Football Foundation, to secure Bootham Crescent as the home of York City Football Club. The FSIF have now provided a variable interest bearing loan to YCFC of £2 million at 0.5% above the base rate over 10 years with specific terms stated below.

After specially convened meetings in London, Bournemouth and York with senior executives and Trustees of the Football Foundation, an agreement was reached, to provide a loan from the Football Stadia Improvement Fund to acquire the majority share-holding in BCH. The loan provision is subject to the following terms and reaching of key milestones.

* York City Football Club will sell Bootham Crescent by 2014 and for the start of season 2014 – 2015 the Football Club will move to a new 10,000, 4 sided all seater stadium or a superior Football League compliant stadium, at a location within the City of York boundary. York City Football Club will then be eligible to apply for a £2.5 million grant from the Football Stadia Improvement Fund to assist relocation and the development of a new stadium. Any residual equity released from the sale of Bootham Crescent, together with the grant, will be used to assist the funding of the new stadium.

* Due to the sums involved in the construction of a new stadium we will need a partner in the future development. The Board of the Football Club will be reviewing all options and will, in time, nominate our preferred partner and the most suitable way forward, but the Football Club will be the dominant shareholder in the new stadium.

* The Football Stadia Improvement Fund will have first charge over Bootham Crescent.
A financial penalty will be imposed on the Club if we do not:
(i) Identify the new stadium site through the local plan process by the end of 2007.
(ii) Have detailed planning permission for the new stadium by the end of 2009.

* The Football Club intends to submit a joint planning application with Persimmon Homes for development at Bootham Crescent. The obtaining of Planning Permission satisfies the SFIS and is a condition of their loan provision. The Football Club is currently in detailed discussions with The City of York Council, at senior level, to identify the most suitable way forward to achieve the aims and ambitions of York City Football Club, with regards to the future of Bootham Crescent and any future stadium possibilities. In any event Bootham Crescent will be the home of York City Football Club until there is a superior newly constructed Football League compliant stadium within the boundary of the City of York.

These key milestones will be achieved with the collaboration of the City of York Council who has been 100% supportive of our cause. The leader, Councillor Steve Galloway and Chief Executive, David Atkinson have been involved at crucial stages, have given firm commitments and have prioritised the plight of York City Football Club by attending meetings with representatives of the York City Football Club Board at very short notice. We will be working closely with the City of York Council during the period of development to identify various sites for the construction of the new stadium within the boundaries of the City. We will also be developing our community vision with the Council to determine mutual goals and objectives.

This solution not only provides short term survival, but provides the basis for long term security and future prosperity for York City Football Club.

All negotiations for the purchase of Bootham Crescent have been fully supported by the Board of the Supporters Trust, and have been conducted within the code of conduct between the Board of the Football Club and the Board of the Supporters Trust.

The Trust will shortly begin significant fundraising activities to help to fund the purchase of the remaining shares in Bootham Crescent Holdings so the Club can achieve its aim of acquiring 100% share-holding.

To conclude, following many months of lengthy, demanding and complicated negotiations the Board of York City Football Club believes that this is a successful and highly beneficial conclusion to the events surrounding the Football Club over the past 2 years.

The Board of York City Football Club would like to thank the Football Stadia Improvement Fund for their financial support and assistance. The Football Foundation executives have worked very hard to ensure York City has a suitable home now and in the future and we are grateful for their significant contribution.

The Board of York City Football Club would also like to give a special thanks to the directors of Bootham Crescent Holdings for agreeing to sell their shares at a heavily discounted price, thus enabling the continuation of York City Football Club at Bootham Crescent.

This is a momentous day in the history of our great Football Club and once again, we, the supporters have achieved the incredible.

The Board of the Football Club has worked tirelessly since March 2003 to turn around the financial position of the Club and we are now succeeding to place York City F.C. on a sound financial footing. Our relegation to the Conference League has been disappointing for us all, but with Bootham Crescent in the hands of the Supporters and back under the ownership of the Football Club, we can now plan for future on pitch success.

Thank you for your continued support. Keep the faith.

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TRUST REACTION TO THE CLUB'S ANNOUNCEMENT

The Trust has produced a separate Newsletter about the ground solution to supplement the information provided by the Club to help provide a better understanding of the issues involved. It is necessarily lengthy, but hopefully of interest and use to those who read it.

The Newsletter is available by CLICKING HERE

The headlines:

* Just over a year ago, whilst many people considered that the York City business was beyond salvation, and with the threat of being ousted from Bootham Crescent casting a dark shadow, the Trust rescued York City from the brink of extinction. This provided the opportunity to fight for the Club’s home. Through the efforts of true City supporters, the negotiated ground solution provides the basis for long term security and a better future for York City at the heart of the community.

* The legal and business aspects of the deal are far from straightforward and there are a number of complexities involved, which is the main reason why it has taken since summer 2003 to reach this stage.
The Club will be paying £2.1 million to obtain a controlling interest in BCH, which currently owns Bootham Crescent.

* Upon completion of the arrangements – which it is hoped will be concluded before the commencement of the 2004/05 season - ownership of Bootham Crescent will be under the control of the Trust and the Football Club. The ownership of Bootham Crescent is being reunited with the Football Club.

* York City will receive a £2 million loan from the FSIF (a partner company of the Football Foundation), on which the Club must pay interest and adhere to certain conditions;

* Persimmon’s agreement with BCH to acquire Bootham Crescent will be cancelled;

* Details of the arrangements are set out in the legal document to BCH shareholders. The shareholders include around 150 City supporters who between own about 6% of BCH.

* The Club will work towards moving to new 10,000 all-seater stadium in York in ten years time. In due course, the Club will sell Bootham Crescent and will reinvest the proceeds in the proposed new stadium.

* The Trust continues to hold the fundamental principle that York City should not be ousted from its Bootham Crescent home unless and until a better facility is put in place for the Club to play its home games.

Thank you for supporting York City FC. Keep the faith.