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United face action over non-payment

From the archive, first published Wednesday 13th Feb 2002.

Legal action is being taken against Oxford United over the non-payment of almost £500,000, owed as part of a deal struck over the Kassam Stadium.

The club was due to pay the city council an instalment of £494,000 on January 4, but the money has not been paid.

Yesterday, the council's executive board agreed to begin start action to recover the debt. It will cost the council £4,000 to issue a writ against Firoka (Oxford United Stadium) Ltd, run by club chairman Firoz Kassam.

The board also agreed to sell Firoka the freehold interest in The Priory, but only after the £494,000 has been paid.

The Priory overlooks the Minchery Farm stadium and is a former nunnery and nightclub. It is run by Mill House Inns.

Council leader Corinna Redman said: "We have been told that following September 11, Mr Kassam has experienced a downturn in the hotel trade, but that is not our problem.

"We are issuing the writ because we need to show him that we are serious about recovering this money."

Property manager Colin Beever told councillors in a report that Mr Kassam had initially suggested through his solicitor that the club was not liable for the payment because certain conditions had not been met by the council in March last year.

Mr Kassam later offered shares to the value of £494,000 instead of payment, due to a cashflow problem, but this offer was rejected.

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