Legal warning to Wrexham's owner

Mr Hamilton has held talks with would-be buyer Neville Dickens

Administrators running Wrexham FC say they will take legal action to stop the club being evicted from the Racecourse stadium in July by owner Alex Hamilton.

Hamilton has also been warned his ownership of the ground could face a legal challenge unless he reaches a deal to sell the club soon.

It follows the administrators' investigation into transactions involving its freehold and leasehold.

The club went into administration last December with debts of £4m.

One of Mr Hamilton's other companies bought the stadium freehold from Wrexham FC last year and then served notice to quit by 21 July.

The administrators, Begbies Traynor, issued a statement saying that following their "in-depth investigation into various transactions" their solicitors had served notice on Crucialmove Limited (formerly Damens Limited).

The statement said that "we do not accept the validity of the break clause in the current lease and will not be vacating the ground in July 2005.

Fans march to keep club alive

"Furthermore, notice has been provided that in the absence of an amicable resolution/consensual sale in the imminent future, proceedings will be issued seeking to set aside the current lease and seeking to have the legal interest in the freehold transferred back to the club."

The statement added: "We remain hopeful that a consensual sale can still be achieved and that litigation can be avoided."

Local car dealer Neville Dickens, a former Wrexham director, is hoping to save the club by buying the ground and has appealed for more investors.

But he said he feared Mr Hamilton would sell to a higher bidder who, he believes, wants to bulldoze the stadium for redevelopment.