Boxing's governing body in Britain was facing bankruptcy yesterday after a ruling that it was liable to pay £1 million sterling damages to the former boxer Michael Watson.

The Court of Appeal in London said that the British Boxing Board of Control had to pay the compensation to Watson after he suffered serious brain damage during a World Boxing Organisation title bout against Chris Eubank in September 1991.

The super-middleweight was left paralysed and is confined to a wheelchair.

The board of control was appealing against an earlier decision that it was liable for Watson's injuries because adequate resuscitation facilities were not available at ringside, a measure that might have reduced the extent of Watson's injuries.

Watson is unlikely to receive the money, however, as the board is a non-profit making organisation and does not have insurance against expensive liability claims. The board went into administration last year following the initial high court case which Watson won.

The decision was announced on the day that surgeons in Sheffield performed a windpipe tracheotomy on Paul Ingle, to assist the breathing of the stricken featherweight who is still in a drug-induced coma in Sheffield after Saturday's tragic bout,

The board could go into liquidation or become totally bankrupt following the hefty compensation claim made against it.

A statement from the board said: "We have listened to the verdict of the Master of the Rolls with regret. Our administrators, Hacker, Young and Partners, will now seek as to what further options may be available on behalf of the board.

"In the meantime, the board, which has already been in administration for a year, will continue to function and carry on with its responsibilities as the regulatory body of professional boxing in Great Britain and Northern Ireland."

Colin Mackay QC argued in court yesterday that the court should not accept that the board has no money even though it is in administration.

Mackay added that it was only in administration because of the Watson case. The appeal judges heard that

the board-approved doctor did not enter the ring until seven minutes after the fight had been stopped.

No emergency ventilation equipment was available and the doctor who attended to Watson was not experienced in resuscitation procedures.

By the time Watson arrived at hospital and doctors attempted to remove a blood clot from his head he had already suffered serious brain damage.

The BBBC argued yesterday that it was merely boxing's regulatory body and was not responsible for providing medical treatment.

Lord Phillips, Master of the Rolls, sitting with Lord Justices May and Laws rejected this argument.

Watson attended yesterday's high court hearing in a wheelchair and refused to comment on the ruling.

Watson's solicitor Michael Toohig said: "Michael is delighted that the Court of Appeal have unanimously found in his favour.

"Over the last nine years, rather than face up to their responsibility, the British Boxing Board of Control have chosen to fight Michael Watson in the courts.

"At the same time as expressing concern for the safety of boxers, the board argued it owed no duty of care to Michael Watson.

"It is unfortunate that the board has chosen to spend several hundred thousand pounds on legal fees fighting this case.

"The Board now claims a lack of funds, and yet there always appears to be plenty of money around in boxing.

"British boxing must now ensure that Michael receives the compensation he both needs and deserves without further delay.

"At this time Michael's thoughts are with Paul Ingle and his family."