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Relocation of Sports Club
Hugh Ellins - Partner
Hugh Ellins
A sports club's most valuable permanent asset is the ground it owns. Developers are looking at sports grounds as places on which to develop houses. A sale of the ground will bring huge amounts of capital into the club.
This can be used to help secure the financial future and to provide new facilities and players. As with all opportunities, there are potential pitfalls and problems which can reduce or potentially obliterate the advantage.
Drawn from our experience in acting for Forest Green Rovers Football Club in its ground move, we set out some of the pitfalls and problems. Some may appear obvious, others less so.
  1. Where will you play in the future? Will this be from a ground you own, or on Lease?
  2. Will you need temporary accommodation and if so, does your controlling body or League, such as the FA or RFC or Nationwide Conference allow you to enter into the needed Ground Sharing Agreement?
  3. How important is your new location?
  4. What is the cost of the move? Will it be covered by the money received for the sale, or will you need to borrow to finance the move?
  5. If you do need to borrow, will you be able to do this without Directors guarantees?
  6. Are the terms that you are obtaining from the Developer the best that can be achieved and do they provide you with a share of future development value?
  7. Are you sure that you know the construction costs, including what may be required as planning contribution and highway cost?
  8. Are you able to obtain grants to assist in the move and if so, on what terms?
  9. How can you afford the professional fees of those advising if the move is not successful?
Even if you do not own your own ground but only have a lease of it you can still share in the development value and many of the above issues will apply.
If you are thinking about a move of ground, we will be delighted to discuss these issues with you. We may, possibly, be able to introduce you to appropriate Developers who are sympathetic to the problems of sports clubs.
For further information please contact Hugh Ellins on 01793 511055 or hugh.ellins@clmlaw.co.uk
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