STUDLEY Castle has been sold for £4.5 million to a football tycoon.

The Warwickshire-based conference centre owned by MG Rover's parent company Phoenix Venture Holdings (PVH) has been bought by the Firoka Group, which also owns Oxford United Football Club.

The firm intends to continue running Studley Castle as a wedding and conference venue and all existing bookings will be honoured.

PVH has owned Studley Castle since buying Longbridge-based Rover from BMW for £10 five years ago but it was put up for sale when the company went into administration.

PVH director Peter Beale said: "We are pleased to have completed the successful sale of Studley Castle. This sale is part of our process of disposing of all PVH assets to allow us to create value for this Longbridge Employee Trust.

"We are currently acting under legal advice not to transfer our shareholdings into the trust, but that advice is under constant review as the terms of reference and the DTI inquiry become clearer."

He added: "In the light of recent press speculation to the contrary, we would like to take this opportunity to reassure everyone that we remain completely committed to maximising the value of PVH assets and making this gift."

The castle's catering firm OCS, which has been also considering its future at the site, was also pleased with the outcome of the sale.

The terms of employment for all of the OCS Catering staff will be transferred to the new owner when their current contracts come to an end on August 26.

Spokeswoman Kat Ager said: "OCS is delighted at the outcome, which sees all staff remain in continuous employment and all events at the castle going ahead as planned, two areas which have been the main priorities throughout the negotiations."