Decision details

The Chief Executive presented a report to inform members of a request from Chesterfield Football Club Community Trust for a loan of £0.5m from Chesterfield Borough Council (CBC) to support the acquisition and operation of CFC 2001 Limited, trading as Chesterfield Football Club.

Derbyshire County Council’s (DCC) Cabinet had met on 16 March, 2020 and approved in principle a loan of £0.5m to the Trust. Both Council’s would complete legal due diligence processes to ensure that their respective interests were properly protected. The two £0.5m loans would be jointly secured by a legal charge on the Club’s stadium.

The report noted that the loan would be repayable over a period of 15 years, on an annuity basis and with a commercial rate of interest. The loan would be repaid in full if the Trust chose to sell the Club at some point in the future.

The Trust had invited both CBC and DCC to appoint trustees to the Trust Board and the report sought approval for delegated authority to the Chief Executive, in consultation with the Leader, to make the appointment.

*RESOLVED –

1.    That Chesterfield Borough Council provides a loan of £0.5m to Chesterfield Football Club Community Trust to support the acquisition and operation of CFC 2001 Limited, trading as Chesterfield Football Club.

2.    That the loan be provided on the terms set out in Sections 4 and 5 of the officer’s report.

3.    That delegated authority be granted to the Chief Executive, in consultation with the Deputy Leader and in conjunction with the interim Head of Finance and the Procurement and Contracts Law Manager, to finalise the terms of the loan arrangement between Chesterfield Borough Council and Chesterfield Football Club Community Trust.

4.    That delegated authority be granted to the Chief Executive, in consultation with the Leader, to respond to Chesterfield Football Club Community Trust’s invitation for Chesterfield Borough Council to appoint a trustee to the Trust’s Board.

REASON FOR DECISIONS

To support Chesterfield Football Club Community Trust to acquire Chesterfield Football Club, ensuring the Club’s survival as a going concern and sustaining the Club’s and Trust’s abilities to promote  the social, economic and environmental wellbeing of Chesterfield borough.