A writ has been served on Oxford United over the non-payment of almost £500,000.

The football club was due to pay the city council an instalment of £494,000 on January 4, as part of the deal struck over the Kassam Stadium, but the money has not been paid.

In February, the council's executive board agreed to begin legal action and on Tuesday (May 21) council leader Alex Hollingsworth said a writ had been served to recover the debt.

It will cost the council £4,000 to issue the writ against Firoka (Oxford United Stadium) Ltd, run by club chairman Firoz Kassam.

Mr Hollingsworth said: "It's unfortunate that Mr Kassam has resisted paying the money but the council would be doing the taxpayers of Oxford a major disservice if we failed to pursue this.

"We're quite prepared to continue discussions with Mr Kassam if he wants to talk to us."

Mr Hollingsworth revealed that legal action was moving forward after Mr Kassam attended the Iffley Leys area committee meeting last night and indicated that the council might face a two-year court battle to get the money.

Mr Kassam went to the meeting to hear residents' concerns about parking around the Minchery Farm stadium.

Former Labour city councillor Tony Stockford, and former council leader John Tanner, who was re-elected as a councillor on May 2 in the Littlemore ward, then questioned the United chairman about the unpaid £494,000.

Mr Kassam dismissed their complaints, telling them: "I didn't come to this meeting to waste my time."

He claimed that his agreement with the council allowed him to pay the amount in shares, instead of cash.

Mr Kassam added: "It will take the city council two years, and cost half a million pounds, if this goes to court and it will not make any difference."

Mr Kassam left shortly after discussions on the stadium were concluded.

Mr Stockford, a former Blackbird Leys councillor, said afterwards: "Mr Kassam does not seem to be treating local residents with the respect they deserve."

Earlier this year, the council agreed to sell Firoka the freehold of The Priory, a pub which overlooks the Kassam Stadium, but only after the £494,000 had been paid.

David Taylor, the city council's legal officer, said: "A writ has now been served in the High Court. No date has been set for a hearing."