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York City face a cash crisis after defaulting on the first installment of a £2million Football Foundation loan.
The initial £100,000 repayment has not appeared, and Football Foundation chiefs have already called a meeting with club officials to explain the problem. The loan, granted in 2003 to help the Supporters Trust buy the stadium, contains a clause requiring the club to move to a new stadium within 10 years. Should the move be made, the loan would become a grant on the new stadium.
At the Supporters Trust AGM in December Jason McGill, York's Managing Director and only major shareholder apart from the Trust, assured reporters that plans were in place to pay the first installment in time.
Now McGill and his family, whose company JM Packaging has already loaned the club £300,000 which is to be repaid in less than a year, have made an offer to cover this seasons debts for a chunk of the 85% shareholding the Supporters Trust have.
City director Jason McGill said: "There are three considerations for the club to move forward which is sorting out the £300,000 loan, finding funding until the end of the season and considering how we go forward in the future. The fundamental issue is that York City Football Club is at present under-funded."
The Supporters Trust, who include Jason's sister Sophie on their board, are due to meet to discuss the offer soon.
