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Bitter £4m legal battle threatens York City's promotion hopes

A bitter legal battle between the former owner of York City Jason McGill and the current owners could threaten the chances of the Minstermen returning to the EFL after a decade's absence.

It is a complex dispute and one that has attracted the attention of the independent football regulator.

McGill was credited with saving the club from oblivion with his loans, but he was a divisive figure and his relationship with the supporters' trust became strained.

Julie-Anne Uggla is a 62-year-old British-Canadian entrepreneur and philanthropist who lives in north London. The purchase of a football club — she also looked at Yeovil Town — was prompted by a passion for the game she shares with her son, the two of them forming 394 Sports Ltd. At York, they have become popular owners, investing more than £6 million in the past two years in pursuit of promotion.

Should the Ugglas be unsuccessful in challenging McGill’s demand, it could be ruinous for the club. As detailed in the High Court claim, York may end up having to pay McGill’s company as much as £4.2 million in interest and dividend charges.

The Ugglas’ view is that McGill received what was owed to him when Bootham Crescent was sold for £7million. Not least because they also believe he received a seven-figure sum from the sell-on fee for the former York defender Ben Godfrey when he moved from Norwich City to Everton in 2020.

A compromise agreement reached in 2022 is complicated and open to alternative interpretations.  However, McGill's lawyers argue that if the compromise agreement is set aside, then McGill would be entitled to years of interest on the loan as well as dividends of £1,1 million.

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