Bitter £4m legal fight threatens York City’s EFL push
york city faces a High Court lawsuit from former owner Jason McGill over alleged unpaid loans and a disputed compromise tied to the sale of the club’s former ground. The claim, filed on February 18 (ET), centres on loans made by JM Packaging Ltd between 2007 and 2022 and a £650, 000 compromise agreement said to be repayable when specific financial targets were met. With the compromise end date due in April 2026 (ET), JMP warns unpaid sums could trigger interest and charges that push liabilities toward £4. 2 million.
York City: The claims
JM Packaging Ltd (JMP) owned a 75% stake in the club and says it loaned several million pounds to the club between 2007 and 2022. JMP’s legal team says most borrowing was repaid, mostly from the £7 million sale of the former ground Bootham Crescent, but that £1 million remained outstanding and was reduced to £650, 000 when JMP sold its stake for £350, 000. A compromise agreement was established that tied repayment of that £650, 000 to agreed financial targets, including increased ticket sales and transfer fees tied to the club’s move to a new stadium. JMP asserts no repayments have been made and has lodged a High Court claim for breach of contract; the claim says failure to repay could make interest on two older loans legally due and could take total liabilities as high as £4. 2 million.
Immediate reactions
Former owner Jason McGill, speaking for J M Packaging Ltd, said: “J M Packaging Ltd (JMP) confirms that its solicitors, Andrew Jackson of York, have commenced formal legal proceedings in the High Court for a substantial sum against York City Football Club Limited (the Club). The claim arises from JMP’s historical financial support of the Club. ”
Rob Ripley of Andrew Jackson Solicitors — representing JMP — added: “The details of the loans made by JMP to the Club were set out in the Club’s annual accounts filed at Companies House. ”
Current co-chairs Matt and Julie-Anne Uggla responded with a club statement focusing on commitment to the organisation: “We remain fully committed and dedicated to the future success of YCFC. We are committed to YCFC to strengthen its foundations, support its growth, and build lasting success. We will continue to invest in the club with a clear vision of creating a sustainable organisation that can stand independently and thrive for years to come. ”
What’s next
The legal dispute has been transferred into High Court proceedings and will centre on contract enforceability, past payments tied to player sell-on income, and whether earlier agreements were valid when signed. JMP’s case contends payments tied to a notable player transfer were applied to reduce debts, while the club’s representatives say the sums were dealt with and that prior agreements may be unenforceable because of procedural failings when they were signed. With the compromise end date in April 2026 (ET) approaching, both sides are preparing legal arguments that could determine whether york city faces a multi-million-pound liability or whether the claim can be limited to the £650, 000 compromise. The High Court timetable and any hearings will set the next milestones for the dispute and for the club’s campaign on the field and off it.
