THE financiers whose millions helped build the Reynolds Arena last night agreed a deal to buy the Darlington FC stadium.

The Northern Echo understands that the Sterling Consortium is the new owner of the Neasham Road ground.

Administrators have sold the 25,000-seater stadium, named after former chairman George Reynolds, as they fight to keep the Quakers afloat.

The deal is unlikely to swell the Quakers' coffers, however, as Sterling is owed more than £4m by the club. The transfer will simply serve to reduce the size of the club's debt.

Having bought the largest asset, the deal could make things easier for Sterling to takeover the club - provided it can reach agreement with other creditors.

Alternatively, a third party could buy the club and rent the Reynolds Arena.

Under FA rules, a lease would have to be for a minimum of ten years.

Sterling is still thought to be keen on buying the playing side of the Quakers' business.

But that depends on the group coming up with a financial package that satisfies creditors, particularly Mr Reynolds.

Mr Reynolds is insisting that he will block any deal unless Sterling ceases bankruptcy proceedings against him.

Should the club be liquidated, Sterling will be left with a stadium of minimal value with no team to play in it.

Joint administrator David Field would only say last night: "We have reached an agreement that will enable us to continue to the end of the season."

The Sterling loan was secured on the stadium and supported by a personal guarantee from Mr Reynolds.

The group recently called in that guarantee and, when it was not paid, issued a bankruptcy petition against the ex-chairman. The hearing takes place at Durham County Court on April 14.