THE SUCCESS of Southampton's Millennium Youth Games was tarnished when a judge said the City Council contracted the management of the event to a "worthless" company.

LEA Sports and Leisure Ltd promptly went bust after the August 2000 games, leaving debts, including £22,281.25 owed to Winchester's King Alfred's College for accommodation for 500 competitors.

The council said the college had a contract only with the company, and it was not obliged to pay.

After a complex legal hearing, Judge Anthony Thompson QC, sitting at Winchester County Court, ruled that they should pay.

The council now has to hand over £22,281.25, plus interest of £4,010.62 and costs in the region of £14,000, bringing the bill to around £40,000. The council's costs are thought to be considerably more than £14,000.

The council claimed the judgement was "unfair" and that it was effectively being forced to pay for the accommodation twice, after already handing over the cash to the now liquidated LEA Sports and Leisure.

Judge Thompson described the company as "worthless" because it was a recently formed offshoot of another company and had no trading history.

He said: "I find it extremely strange, bearing in mind the sums of money involved, that Southampton City Council entered into a contract. No explanation was offered as to the circumstances in which that came about."

He said it had not been made clear to the college they were entering into a contract exclusively with LEA Sports and Leisure.

More than 6,800 children took part in the city games after winning through from 250,000 youngsters in heats across the country. The games were universally hailed a success and were the biggest youth sporting event ever held in Europe.

King Alfred's College vice-principal Tommy Geddes said he was "delighted" at the verdict.

He said: "We thought long and hard about whether we would take the risky and costly route of legal action against Southampton City Council. But we weren't prepared to accept them acting with impunity when they take on fly-by-night companies who go bust after acting on their behalf."

Paul Mawson, head of Southampton City Council's head of leisure, said: "It was disappointing and unfair, particularly given that King Alfred's College clearly entered into a contract with another party and we are now being asked to pick up the cost."

"If you add that we have already paid in good faith money for the accommodation to the contracted organiser. So we have to pay twice and that's why it is unfair.

"On the plus side, it was a hugely successful event and the city council got £1.2m investment into sports facilities and it was an event which gave us an international profile."

He added that the council was considering appealing.