THE future of Oxford United looks more assured after new buyers were revealed last night.

London-based financial advisers Grenoble Investment Ltd want to develop neighbouring land to get the stadium at Minchery Farm up and running again.

Grenoble have signed a conditional contract to buy former chairman Robin Herd's 89.2 per cent holding, shareholders were told by directors at the football club's AGM.

The consortium is headed by John Gunn of John Duncan & Co Ltd, corporate financial advisers with offices in Cheapside, London. They operate from the same building as Grenoble Investment Ltd.

The consortium is at least three-strong, but it is not known whether the money men have evenly-split stakes or 60-20-20 shares in the project.

The sale's contract conditions should be completed within a month, United hope, and by around November 30, Grenoble will pump £1m into the club to be used as working capital.

That money will not go to manager Malcolm Shotton to spend on new players, but in essential running costs for a club that currently has crippling interest charges of £425,000 a year - some 14 per cent of its turnover. After being presented with evidence from Grenoble that they can finance the construction of the new stadium, United will sell the Manor Ground to them.

And revenue from this sale will be used to "control and resolve" the creditors of Oxford United secured on the Manor Ground - principally Lloyds Bank, Energy Holdings and Herd.

Managing director Keith Cox assured the shareholders that the Manor would only be sold "upon definitive evidence of stadium financing being in place" and he guaranteed that the sale would take place at a market price.

Shareholders were told that Grenoble "have the ambition to create a successful football club at the heart of a thriving commercial and leisure development at Minchery Farm".

Land adjoining the stadium site, which is still owned by Oxford City Council, has already been earmarked for hotel and leisure development.

Earlier in the day, the council's Strategy and Resources Committee agreed in principle to settlement of the Thames Water High Court action. United are due to pay £300,000 upon sale of the club, £100,000 on the new stadium opening and £35,000 in legal costs. But under an agreement with the council, £200,000 will be knocked off their rent at Minchery Farm.

Cox said the new owners were backing the exisiting management team and are not seeking high personal profiles. They will go more public when the deal with Herd is completed.

"They are not shouting their mouths off when they have not got the deal in the bag," commented United's Nick Wright.

The financial advisers are understood to have been involved in some of the non-football property developments with Chelsea Village. Cox said the consortium had reached agreement with stadium constructors Taylor Woodrow on the method of payment and the amount, and Taylor Woodrow were convinced that "these people have the money to do what they are saying they will do".

He added that, following negotiations, the City Council will be paid amounts owed to them "on or before" the stadium opening.

Herd has agreed that repayment of interest he is owed can be delayed until income is being generated from the new stadium.

The takeover is conditional on Grenoble exchanging contracts to buy the Manor. TIMETABLE

Mobilisation of construction workers in November

Fully operational construction in January

Three sides of the ground up and ready in time for the 1999-2000 season

Fourth side will now be built, more than likely to be ready for autumn 1999

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