Council chiefs want to see "money on the table" before they give their backing to Firoz Kassam's planned takeover of Oxford United.

London-based hotelier Mr Kassam has had a private meeting with council officials to outline his proposals for saving the club and completing the half-built stadium at Minchery Farm.

His package is believed to involve building a hotel and leisure complex, including a multiplex cinema, on land next to the new stadium.

John Tanner, leader of Oxford City Council, said he was hopeful that an agreement could be reached between the council and Mr Kassam.

But he added: "I am sure Mr Kassam has some money he wants to put in, but we are talking about debts of more than £10m.

"In any package that will enable Mr Kassam and others to bring in money, we want a cast iron guarantee that we get a club that is stable and a stadium that is built. "I am sure Mr Kassam's intentions are honourable, but we could get someone saying they will develop the ground but end up developing the commercial side and leaving the club in a mess.

"We want them to put money on the table."

Oxford United, which is about £13.5m in debt, still owes the city council £900,000 from the sale of the Minchery Farm site.

The council has planning permission in principle for a hotel on two-acres of council-owned land to the east of the half-built stadium, which it is hoping to lease to a private developer.

A separate private developer also has planning permission for a 60-room hotel on land to the west of the stadium.

A four-acre, L-shaped piece of council-owned land, also to the west of the stadium, is set aside for "commercial leisure use" in the local plan.

Mike Ford, head of planning policy at the council, has been looking at schemes in Coventry and Swansea, where planners have looked favourably on leisure complexes built beside football grounds.

He said: "We are supposed to be generating city centre leisure but there is also an argument that leisure facilities should go hand in hand with football grounds." Mr Tanner added: "I think we can get round the planning difficulties, but we need to make sure the money is in place. The aim is to put the club on a secure financial footing."

Mr Kassam told supporters at a public meeting on Tuesday: "I give you my word, if we all work together, my commitment is there - and I'll do it."

He has paid £500,000 for an option to buy the club before March 31 - but it is unknown how much money he is prepared to plough into the club.

Meanwhile, Oxford United must give assurances to the FA by the end of this month about its ability to build a new stadium, if it is to be allowed to continue allowing fans to stand at the Manor Ground.

Fans have said they plan to set up a political party to put extra pressure on councillors to support developments at Minchery Farm.

Story date: Friday 12 February

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