Oxford United chairman Firoz Kassam has sold the Manor Ground for £12m -- twice the amount paid for it last year.

Meanwhile, Oxford City Council is suing Mr Kassam for £494,000 which, it claims, it is owed as part of a deal struck over the club's new home, the Kassam Stadium, in Minchery Farm.

The football club sold its old ground, in London Road, Headington, in May last year to Mr Kassam's company Firoka for £6m, with support from United shareholders.

The land then had no planning permission for further development and Mr Kassam said no other company was prepared to risk buying it. Since the first sale, planning permission has been given for a new private hospital and 87 flats on the land, increasing its value.

Firoka sold the Manor Ground in January to Nuffield Nursing Homes, owners of Oxford's Acland Hospital. According to the Land Registry, the price paid was £12m.

The site is now being developed by the Acland and building firm Bellway Homes.

Although Firoka is directly involved in running United at the Kassam Stadium, it is not yet clear how the latest deal might benefit the football club.

Oxford United made no profit on the first sale, because all the money went to creditors with money secured on the site. Martin Brodetsky, co-editor of Oxford United fanzine Rage On, said: "I should think there will be a lot of disgruntled fans when this news breaks."

He added: "I think it's a bit disappointing, to be honest, especially as the club sold the Manor to Firoka for no profit."

Oxford City Council leader Cllr Corinna Redman said: "Mr Kassam owes city taxpayers nearly half-a-million pounds. I can't believe he doesn't have the resources to pay this outstanding money to the council."

Oxford United Football Club made a loss of more than £1m last year. The trading results for the year ending June 30, 2001, announced last month, revealed an operating loss of £467,898, compared with £764,859 for the year to the end of June 2000.

After taking into account player dealings and losses on surrender of lease and interest costs, the total loss for the year to June 30, 2001, was £1,067,900, compared with £907,356 for the previous 12 months.

Mr Kassam, who has been listed as the 11th wealthiest Asian in Britain, has not yet commented on £12m sale figure.

After repeated attempts to contact him, he told the Oxford Mail yesterday afternoon that he would call back, but no call had been received at the time of going to press.