Oxford Utd face legal action

The Kassam Stadium was completed in 1999

Oxford United are facing legal action over £500,000 of unpaid debts.

It is believed club chairman Firoz Kassam owes the money to Oxford City Council as part of an agreement signed in 1999, when permission was granted for the completion of the club's new stadium.

No-one wants to damage the club, but there are important issues here

Councillor Val Smith

As part of the planning permission for the Kassam Stadium at Blackbird Leys, it had been agreed that payments would be made to help improve the surrounding area.

The council says the club owes it £183,333 for the transport infrastructure, £100,000 for improvements, £41,666 for a controlled parking scheme and other payments.

It claims it has only received one payment of £1,000 to improve security measures at a local school.

Blackbird Leys councillor Val Smith said: "No-one wants to damage the club, but there are important issues here.

"We should ask the legal department to take action."

Last August, Oxford City Council received £510,000 from Mr Kassam's company, Firoka (Oxford United Stadium) Ltd.

The money was owed to the council over the Kassam Stadium deal.

Mr Kassam has been unavailable for comment.