Council taxpayers in Oxford face a huge bill as soon as a ball is kicked in a professional match at Oxford United's new stadium.

Thames Water won a High Court case which could land Oxford City Council with a bill running into hundreds of thousands of pounds.

And if the sum demanded by Thames Water is above an undisclosed figure, Oxford United will have to pay the balance.

Judge Michael Rich, sitting in the Chancery Division of London's High Court, decided yesterday that the half-built stadium at Minchery Farm broke a covenant placed on the land by Thames Water, the former landowner.

The covenant prevents the land being used for anything other than recreation and similar purposes.

Thames Water had argued it could have charged a higher price had it known the land was to be used for a football stadium.

Oxford City Council, as first defendant, and United, as second defendant, had argued that the covenant did not prevent them using the land for leisure.

They maintained that the stadium fell into the leisure category. The judge disagreed,

John Arnold, the city council's director of property and leisure, said that the council was considering an appeal.

He refused to say how much the judgement might cost council taxpayers but stressed that the council's financial liability was limited to a "small number of hundreds of thousands of pounds" under its agreement with the club.

United would have to pay any money over and above that sum. A spokesman for Thames Water said: "Obviously we want to see football played at the stadium but we obtained a price for the land that reflected leisure use.

"If it is to be used for commercial purposes, we are owed more and of course we have to protect the interests of our shareholders."

Work at the new stadium came to a halt 18 months ago when contractors Taylor Woodrow walked off site over a "payment issue".

The city council owns the land on which the concrete piles of the unfinished stadium now stand, but is selling a 125-year lease to United.

The club is nine months overdue in paying an instalment of £900,000 on the £2m price tag.

Oxford city councillor Tony Stockford, who represents the Blackbird Leys ward next to the stadium, said: "I am seeking a special meeting of the strategy and resources committee to discuss the consequences of this dec- ision."

Oxford United managing director Keith Cox said: "As you know, Thames Water no longer seeks an injunction, so that building work can continue once the programme is agreed with the contractor and the council. "We will sit down with Thames some time next week to discuss the issues. Now we have a court ruling on a very complicated legal issue, it is easier to calculate the matter of compensation and our arrangements with the council already contemplate this.

"Thames have said in court that they wish to see football played at the new stadium which is very positive."

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