Council bosses are set to approve a £150,000 loan to support a North Yorkshire football club’s future.
North Yorkshire Council’s executive committee has been asked to grant a £150,000 loan to Scarborough Athletic FC (SAFC) owing to “an unusual and unique situation arising from the structural defects” at the council-owned pitch.
Ahead of planned resurfacing and remedial works last year, a detailed survey revealed serious and significant structural issues that will take “much longer to address” and could cost around £3 million to repair.
Works are currently taking place to remedy the defects, but Scarborough Athletic has been unable to use the pitch and is playing its home fixtures at Bridlington Town.
The club has experienced a significant drop in income owing to reduced attendance and fewer hospitality opportunities this season, and the club has requested a loan from NYC to support it financially over the next 12 months.
Council bosses are set to make a decision at a meeting in Northallerton on Tuesday (17 February).
A report prepared for the meeting states that although SAFC has put measures in place to mitigate the impact of its loss of income with campaigns and fundraising and has been supported by its sponsors, the club expects to experience cash flow issues for the next 12-months.
Cllr Simon Myers, North Yorkshire Council’s executive member for leisure, said: “The ongoing repairs have had a significant effect on all users of the pitch, but especially on Scarborough Athletic who rely heavily on matchday income and sponsorship.”
He said: “It is an unusual set of circumstances, and we would only consider a loan in the most exceptional of situations.
“But we are the landlord at the sports village, and members of the executive will consider the proposals carefully.
“We know how important the club is to the whole community, and that’s why we are absolutely committed to ensuring that the pitch is repaired to an excellent standard, as swiftly as possible, so it can be enjoyed again by everyone.”
According to the report, the loan will only be drawn down under the loan facility if required.
“It will be provided at commercial rates, however, providing repayments are made in line with the loan agreement (both interest payments and the loan principal), a grant will be provided to SAFC as a contribution towards the interest payments.”
