CHESTER CITY'S owner Stephen Vaughan has contacted the Football Association to tell them he has signed over his shareholding in Barrow Football Club.
The FA wrote to Mr Vaughan on Monday, asking him to explain his financial interests in both clubs, who are due to meet in the fourth qualifying round of the FA Cup on Saturday.
The Merseyside-based boxing promoter said last night: "My solicitors, Lupton Fawcett, have written to the FA telling them that we have signed our interests in Barrow FC to Mr A Brown."
The FA are concerned that FA Cup Rule 30, which states that one person cannot have interests in two clubs in the competition, could be breached because of Mr Vaughan's involvement with the clubs.
Vaughan owned the Furness-based outfit from 1997 to 1999 and has an outstanding claim against the club for £289,000.
The situation is similar to that experienced by Peter Johnson when he had stakes in Everton and Tranmere Rovers and Robert Maxwell, who was rumoured to have involvement with both Reading and Oxford United.
Mr Vaughan is hopeful the situation with the FA will be resolved amicably later today and that the preparations for the Cup tie can proceed.
Vaughan also revealed last night that he had reached a unique agreement with the City players. He explained: "I've offered the players 10 per cent of all the money we accrue from our FA Cup run.
"If they win on Saturday, for example, they could earn around £3,000 as their share of gate receipts and prize money.
"The further they progress in the competition the more money they can earn." City were informed yesterday that Liverpool Football Club won't allow young central defender Chris O'Brien to play at Holker Street.
The 19-year-old player joined City on a three-month loan deal two weeks ago but, despite the fact he's never figured in the Reds' first-team squad, they don't wish him to be cup-tied.
Brett Baxter and Michael O'Brien will also miss the game because they have appeared in the competition for other clubs earlier this season.
However, there was good news for City fans regarding the fitness of leading scorer Mark Beesley, who trained yesterday and has a 50-50 chance of playing in the cup tie.