Oxford United chairman Firoz Kassam is set to battle on in his bid to complete the club's half-built new stadium at Minchery Farm despite a setback, writes Russell Smith.

United claim that brewers Morrells of Oxford Limited have threatened the cash-strapped Division 2 club with an injunction stopping building work at Minchery Farm unless a substantial amount of money is paid.

A covenant - prohibiting the building of commercial premises for, among other things, the sale or consumption of alcohol within half a mile of the Blackbird pub owned by Morrells - exists which relates to the land at Minchery Farm.

According to United, Morrells' previous board of directors supported Oxford's attempt to move to Minchery Farm - and did not invoke the covenant when work started on the stadium three years ago.

But now United say the new owners of Morrells have taken a different view and have threatened the club with an injunction. United chairman Firoz Kassam said: "When I signed the land deal with Oxford City Council on February 4, I reported in all good faith that I hoped building work on the stadium would re-start by the end of the month.

"I would like our loyal and patient supporters to know that this latest complication is not of my making.

"I hope this dispute can be resolved quickly, but it adds further cost and a possible unnecessary delay."

Morrells of Oxford issued a statement which included: Morrells of Oxford has the benefit of a covenant restricting the sale and consumption of intoxicating liquors on the land on which it is proposed to build Oxford United's new Stadium and related developments.

These rights were granted by Oxford City Council and the existence of The covenant and its value is well-known to both the Council and Oxford United Football Club. The facts are:

Despite suggestions to the contrary, no agreement was made with Morrells Brewery Ltd. Morrells of Oxford acquired the rights to the covenant when they bought the company in October 1998. In January 1999 Morrells of Oxford was approached by the then chief executive of Oxford United FC to discuss the covenant.

Mr Kassam approached Morrells of Oxford in November 1999 and since then there have been a number of meetings to discuss the covenant.

Mr Kassam knew exactly the position of Morrells of Oxford in respect of the covenant when he signed the land deal with Oxford City Council on February 4 2000.

The Morrells covenant is not the major outstanding dispute relating to the stadium and associated developments. Thames Water has a restrictive covenant, also relating to use of the land, and terms for the release of this covenant continue to be unresolved. Peter Large, commercial director of Morrells, said: "We have been prepared to negotiate and have made it clear the we do not wish to stand in the way of development and relocation of the football club. However, Morrells of Oxford has a duty to its shareholders and customers to protect its rights."

Story date: Thursday 17 February

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.