Council Could Loan £150k to Scarborough Athletic

Steps to help support the financial sustainability of Scarborough's community football club are set to be considered as crucial pitch repairs continue at its home ground.

The 3G pitch at Scarborough Sports Village – the home ground of Scarborough Athletic Football Club - is unavailable for competitive fixtures this season after a site survey last year highlighted serious and unexpected structural issues.

The issues date back to when the facility was first constructed in 2017 for the former Scarborough Borough Council. North Yorkshire Council has since committed to ensuring repairs are undertaken to secure the long-term future of the pitch.

While the works are being carried out to the pitch, the National League North side has secured a ground share agreement to play this season’s home fixtures at Bridlington Town.

But the unfortunate situation has led to the club to experience a significant drop in income through reduced attendance and fewer hospitality opportunities this season.

The council says it is continuing to work closely with Scarborough Athletic during this period, and the club has requested a loan from the authority to support them financially over the next 12 months.

Members of the council’s executive are set to consider proposals to introduce a loan facility of up to £150,000 to help support the club when they meet on Tuesday next week (February 17).

North Yorkshire Council’s executive member for leisure, Cllr Simon Myers, 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.

“The club have put measures in place to mitigate the impact of their loss of income while the pitch is repaired, with campaigns and fundraising as well as support from their sponsors.

“It is expected their financial position will improve significantly once the pitch repairs are completed. However, the club expects to experience cash flow issues in the short term due to not being able to play home fixtures at Scarborough Sports Village.

“The proposed loan facility is designed to provide the club some much-needed security and support as they work to reset their financial position.

“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.”

The loan would only be accessed if required by the club and would be provided at the usual commercial rates, if it is approved by members of the council’s executive next week.

The authority is also set to consider a small grant to contribute towards the cost of servicing any loan while incentivising the club to keep levels of debt to an absolute minimum. 

The first phase of the project to carry out urgent repairs to the pitch was completed last month (January) with the playing surface successfully removed by contractors.

This will allow stabilisation works and drainage repairs to commence in the coming weeks, before a new pitch surface is laid.

The council has committed to ensuring the repairs are completed in time for competitive matches to resume in August this year for the start of next season. 

In an update to fans the football club's board said:

"Since Scarborough Athletic Football Club (SAFC) received the news that we would be unable to play at the Scarborough Sports Village this season everyone has been working hard on both the practical and financial challenges associated with our circumstances.

We are constantly assessing not only our current financial situation but prudently forecasting for the future and assessing potential issues and contingencies and we very quickly identified that should the club encounter cash flow problems as a result of our temporary displacement that there may not be immediate access to borrowing facilities should the need arise.

SAFC have continued to work closely with North Yorkshire Council (NYC) in a number of areas and are pleased to confirm that senior councillors will be considering a club request for a loan facility of up to £150,000 at a meeting on the 17th February. While it remains subject to approval this commitment represents another positive statement of intent from NYC in seeking to help safeguard the club's future and is a measure that we believe will help mitigate against the potential impact of any financial uncertainty during the next twelve months.

As a Board we are clear that we will only consider drawing upon this loan facility in the event that it is deemed essential and it is not a move away from our sustainable values or model of operating without unnecessary debt under normal circumstances. Supporters should be reassured that this is just one of a number of measures that we have been progressing for some months and the timing of the announcement is not an indication of a sudden downturn in our current financial position or forecasts.  

The main focus of the Board throughout our exile has been to ensure a sustainable future for the club and with the support and generosity of our members, sponsors, fans and key stakeholders we believe we are collectively achieving that goal without the need for borrowing but that the above loan facility, if approved, is a prudent safeguard for our fan owned club."