Former trustees of the charity that owns Bodicote Park -- the home of Banbury Rugby Club -- could be ordered to pay financial losses of up to £1m out of their own pockets.

A statement from the Charity Commission blames the trustees of Charity for a Recreation Ground Banbury for the demise of Bodicote Park.

And for the first time, the rugby club itself is cited as a contributor to the problems.

The commission, which regulates UK charities, was called in earlier this year to investigate the running of the sports ground.

In its statement, the commission said Bodicote Park's trustees inappropriately used charity funds to subsidise two loss-making businesses -- Banbury Recreational Facilities Ltd and the Banbury Recreation Company. They were set up to run the clubhouse and bar when the club moved to the site after the Oxford Road ground it used to play at was sold to supermarket chain Sainsbury's for £3.2m. Both Banbury companies went into liquidation at the start of this year.

The statement blames the rugby club for adopting a 'sole use' attitude to what should have been a public playing field. Until now, the club has claimed to be a tenant of the charity and an innocent party in the problems.

The crisis has seen the rugby club locked out of the pavilion except for match days and practice nights. The bar and conference centre have been shut while receiver John Ariel, of Baker Tilly, investigated.

He has said Bodicote Park cannot be run as a viable concern and has recommended the sale of the whole site. The commission said it would decide whether or not to demand restitution from former trustees.

The charity was set up when it was found that the rugby club did not own the former ground in Oxford Road and that its committee had acted as trustees for the land since the 1950s when it was left to the people of Banbury.

The commission approved the sale to Sainsbury's in 1991 on condition that another, larger recreation ground would be bought and that a significant amount of funds would be left over for charitable purposes.

The majority of trustees were not to be rugby club members but the commission's statement said many of the nominally independent representatives did have ties to the club "and the club effectively controlled the new ground as it had the old one".

The statement said £500,000 of the £3.2m from Sainsbury's was used to buy the new ground and around £1.7m was spent on the clubhouse. Much of the remaining £1m was used to support what quickly became loss-making trading operations and on improving rugby facilities.

In February this year, the then trustees -- most of whom had no connection with past decisions -- alerted the commission to the businesses' financial problems.

John Colegrave, one of the current trustees, said: "I dispute that £1m was spent propping up the companies. It was a lot less than that."

He said he feared for the future of the site if it was sold. He said: "There is no guarantee that a private company will keep the field for public or sports use. I'm worried the land will end up in the hands of a property developer."