Administrators are looking to sell the 130-year-old club

A High Court judge decided last week that the freehold should be returned to the club's administrators.

The judge ruled that club owner Alex Hamilton should not have transferred the freehold to one of his companies.

On Wednesday his legal team told lawyers acting for the administrators that he will seek leave to appeal.

The ruling last Thursday at Birmingham High Court found that the freehold of the club should be held in trust for the administrators.

Sale proceeds

Administrators Begbies Traynor said last week that Mr Hamilton could petition the Court of Appeal against the ruling.

Administrators will have to pay Mr Hamilton �300,000 from the proceeds when the club is eventually sold.

The administrators announced details of the judgement last week

Property developer Mr Hamilton took over from his former business associate Mark Guterman as chairman of the then League One club in 2004.

By the end of the year, the club had gone into administration with debts of more than �4m and in May 2005 was relegated to League Two following a 10 point penalty imposed by the Football League.

Delay

Administrators began a High Court case to seize the Racecourse from Mr Hamilton.

The court hearing in Birmingham was told that his company, CrucialMove, had negotiated to buy the Racecourse with plans to develop the site for housing or commercial use.

But last Thursday, a judge decided that CrucialMove should not have bought the freehold of the stadium in June 2002.

David Acland, of the administrators, said last week there were still "fairly huge obstacles to overcome" as they looked to complete a sale, with talks being held with two interested parties.

They include local businessman Neville Dickens, a former club director.

It is thought an appeal might delay these plans.

The club needs to be out of administration by the end of this season, or under regulations it could face being thrown out of the Football League.