Yeovil Town have responded to national newspaper comment regarding the formation of a holding company at Huish Park.

Two months ago chairman John Fry announced plans to create Yeovil Town Holdings Limited in order to support plans to develop the npower League One club over the coming years.

The move has been under consideration for five years and has secured the backing of more than 96 per cent of the registered shareholders.

Last week, the Guardian printed the second in a series of articles, questioning the need for the proposed structure and the benefits that it would bring to the football club.

The Glovers were contacted by Guardian journalist Matt Scott prior to the publication of the second article last week, but a detailed response from the Huish Park outfit has yet to be acknowledged by the national paper.

Responding to concerns also expressed by a small number of fans, Yeovil chief executive Martyn Starnes said creating a holding company did not mean the club was destined to experience similar financial problems to Crystal Palace and Rotherham.

"As far as we are aware at least 45 clubs out of the current 92 in the top four divisions have established a holding company to manage their property assets in some shape or form," he said. "We are not doing anything unusual or irregular.

"It would be incorrect to suggest there's any correlation between clubs establishing a group structure and those encountering financial difficulties.

"Almost 50 per cent of the clubs in the Football League have been in administration so of course some of those clubs are part of a group. But there are many clubs that have not suffered serious financial setbacks that are also part of a group."

The chief executive added: "The sole purpose for embarking on this strategy is to improve our chances of upgrading our facilities at Huish Park and to create additional income streams to support the football team and enhance our competitiveness in npower League 1.

"Extensive consultation over the last few years has educated us to the fact that the separation of our property assets into a holding company is more likely to attract potential investors who wish to partner or contribute to an appropriate development but have no wish to be tied into the finances or operations of a football club.

"The document which was issued to shareholders outlining their opportunity to exchange their shares in the football club with those in the new holding company made it clear the stadium was staying in the football club.

"The directors of the holding company have no wish to create a rental charge between the two companies."

He added that the shareholders' rights and interests in the football club are maintained in their entirety.