Agenda item

The Committee considered details of a Member Call In that had been received following a Cabinet decision on 16^th October regarding the terms of the agreement between Slough Town Football Club (STFC) and Slough Borough Council.

Councillor Smith, a signatory to the Call In, addressed the Committee and summarised details of the Call In. It was submitted that the proposed agreement meant that SBC would be subsidising STFC with no attempt to recover the capital costs of building the stadium to STFC’s specifications and only a nominal rent and profit share with STFC on other income to partly cover operating costs falling to the Council. Councillor Smith stated that this conflicted with an undertaking made by the then Leader of the Council, Councillor Anderson, in July 2015 at full Council meeting, that no commitment was being made to subsidise STFC.  It was requested that the Council explore putting in place a more realistic business plan which meant that it would receive the market rate for rental of the stadium.

The Director of Finance and Resources informed the meeting that it was proposed that the Council enter an 18 month agreement with STFC, with a break clause enabling either party to terminate the agreement with a minimum three months notice. The contract would be subject to an annual review. Members were reminded that since 2009, STFC had promoted a proposal submitted to the Council for permission to build a new stadium within the Borough. In July 2014, Cabinet had approved that a new Community Sports Facility be developed on the Arbour Park site. The site was now fully operational and being managed by the Council’s Facilities Management Team and was STFC ground since the beginning of the 2016/17 football season.

Referring to specific points raised in the Call In, the Director explained that STFC were a hirer of the stadium and had no ownership in the land or asset.  The social return on investment sufficiently covered rental costs in a non-monetary value. It was confirmed that there was no record of a Council or Cabinet decision stating that a commitment had been given, by the then Leader of the Council, Councillor Anderson that no subsidies would be made to STFC.

It was explained that multiple users were making use of the community stadium which represented value for money. In response to who kept the proceeds from gate receipts, Members were informed that although all proceeds from gate receipts would go to STFC, SBC would receive 50% of income received from the bar. The Director of Finance and Resources assured the Committee that the income generated from gate receipts would be subject to review should STFC get promoted. It was noted that users of other venues were not expected to contribute towards capital costs and reference was made specifically to Slough Jets and the current refurbishment of the Ice Rink.

A number of issues were raised in the ensuing discussion, including what arrangements had been put in place to monitor the terms of the agreement. It was outlined that the contract would be reviewed on an annual basis and a  number of Key Performance Indicators would measure the effectiveness of the agreement. It was agreed that a report would be considered by the Committee in twelve months time. 

Resolved –  

(a)  That no further action be taken in respect of the Call In request of the Cabinet Decision of 16^th October 2017 on the Arbour Park Community Stadium Slough Town Football Club Agreement with Slough Borough Council.

(b)  That a progress report, monitoring the Key Performance Indicators within the agreement, be considered by the Committee in twelve months time.