ASSEMBLY bosses last night revealed they are probing the transfer of Wrexham FC's ground to Alex Hamilton's company.
Following talks over the future of the crisis-hit League One club in Cardiff, sports minister Alun Pugh said the inquiry will focus on a key 2002 deal.
Wrexham politicians pressed the minister over funding to support a purchase of the ground and club.
The Sports Council for Wales is also examining the transfer of the Race-course's ownership to a company owned by Mr Hamilton, the club's major shareholder.
It sanctioned a £1m lottery grant in 1998 to help to build the stadium's Pryce Griffiths stand, but could claw it back if the ground is sold for redevelopment.
The club is desperately searching for a buyer after it petitioned the High Court for voluntary administration to stave off the threat of a looming winding up order over unpaid tax.
Wrexham MP Ian Lucas said after yesterday's meeting: "I highlighted the dealings relating to the Racecourse ground some time ago and I believe the future of the club is intrinsically linked to these transactions.
"One of the major concerns is that the assembly government and other public bodies have invested a lot of money in the Racecourse ground.
"There is an increasing realisation that if the club goes out of existence or is sold off, millions of pounds of public money could be lost."
It is unlikely the Assembly would want to get involved in the ownership of a football club. But local authorities across Europe often run municipal stadiums, used by sports clubs.
The Racecourse ground is the main sports venue in North Wales for football, rugby union and rugby league international fixtures.
Mr Pugh, AM for Clwyd West, said: "The assembly government clearly wants the Racecourse to continue as a venue for international sport, and, as sports minister, I also have a responsibility to protect the extensive existing public investment in the ground.
"It appears in 2002, a land transfer took place without the consent of the sports council, and we are now closely examining our legal position on this. The Sports Council has written to Mr Hamilton informing him of this."
Mr Hamilton says the transactions concerning the ground were proper.
He said: "The club entered into a trust deed and monies paid by me into a solicitor's account were paid directly to the brewery. Wrexham Football Club paid nothing."