The County Ground purchase- your questions answered

TrustSTFC members are voting on the plan to purchase the County Ground along with Swindon Town. Alex Pollock, vice-chair of TrustSTFC, has answered your questions around the purchase.

Since March 2015, TrustSTFC have been pursuing the purchase of the County Ground and finally in March 2022 Swindon Borough Council agreed the sale to The County Ground Stadium Custodians Limited.

This is a company owned 50% by the football club and 50% by the trust, and now the members are being asked to approve proceeding with the joint venture agreement, with a 75% majority required and a minimum turnout of 50% to make it binding.

Total Sport Swindon asked for your questions surrounding the purchase and put them to Pollock to clear up parts of the deal.

Q: Is the ground purchase on a ‘leasehold’ basis or is it owned outright ‘freehold’ by the supporters?

A: The joint venture (The County Ground Stadium Custodians Ltd.) is 50% owned by Swindon Town Football Club and 50% owned by TrustSTFC, which is the vehicle purchasing the stadium freehold from Swindon Borough Council.

The joint venture then leases it back directly to the club for the next 250 years.

Q: Is the stated £2.3m cost to be fully covered by the Nigel Eady Trust or will there be an outstanding amount covered by the joint venture? If so, is it split 50% STFC and 50% TrustSTFC?

A: The full purchase amount of The County Ground is being funded by the Nigel Eady Trust, and we’ll be forever grateful for that. The stamp duty will also be covered by them. 

Q: Have the legal costs incurred to date been split on the same 50/50 basis?

A: TrustSTFC has been working on this project to acquire The County Ground from Swindon Borough Council since 2015, and over that time, there have been legal costs incurred for a variety of requirements. To date, we have spent nearly £100k in those 8 years to get to the stage that we’re at, as well as a significant amount of pro-bono legal support courtesy of James Maton (Cooleys LLP) and Greg Callard (Royds Withy King).

Whether Swindon Town Football Club incurred any legal costs under previous ownership, we’re not sure. But in the last 18 months, there have been a variety of additional legal costs that have been split 50/50 between the Trust and the current ownership at STFC.

Q: Can we have a statue of Matt Hewlett outside?

A: No. But we do have a statue of Don Rogers currently being produced. 

Q: Can STFC use their 50% share as a guarantee against a loan? Ie if STFC wants to raise funds, for say ground development (or any other reason), can they secure those funds against their 50% ownership of the County Ground?

A: There are a variety of avenues the joint venture could look to source additional funding for redevelopment work, and a commercial loan is one of those. As the stadium will be under a 250-year lease, it is more likely that any lending would be secured at the Club level rather than the JV level (although the shareholders (supporters) would have to approve this).

Q: Is there any guarantee that the club and owner will redevelop the CG or can the owner just sell the club within the next 3 years and risk the council buying the ground back.

A: The joint venture is committed to starting work, and a redevelopment project of more than £1 million in costs has to be commenced within the first 3 years. The joint venture is committed to this, and it's a vital part of the agreement and the long-term sustainability of the club. 

Q: Clem and the club are not paying anything for a 50% share so if he decided to sell the club the day after the purchase haven’t we just made him an extra million in the selling price.

A: And the supporters are not having to pay anything for the ground, thanks to the generosity and support of the Nigel Eady Trust. But the real value comes from a developed stadium with regular revenue streams, not just on a Saturday afternoon so it's pretty unlikely that Clem would walk away now.

Q: When it gets bought can the council refuse planning permission?

A: All plans for future redevelopment work on The County Ground will need to follow the standard planning application processes and regulations. The unique part of the joint venture is that TrustSTFC engages members, giving them the opportunity to review and engage in plans before the joint venture proceeds with them.

Q: The plans for Stratton Bank appear to be a quick fix to stick a roof on it. Whereas the Townend plans are very ambitious for £20M. Why are we looking to build a modern new Stratton Bank like the original 1994 plans when the DRS was built

A: The current development proposals that are in the public domain are there as a guide to what the future potential could be. The priority at present is seeking approval from TrustSTFC members to proceed with the joint venture to acquire The County Ground, before progressing with discussions around redevelopment. Once we own the stadium, the hard work begins in developing projects, producing architectural plans and securing the funding, in which we hope the supporters will play a key part.

Q: The deal has a provision that Swindon Borough Council has a buy-back option under certain circumstances. What are these and is it a likely scenario?
A: Swindon Borough Council has stipulated two buy-back provisions. One is that lease between the joint venture and STFC needs to be signed within 4 months of purchase completion. And the second is that a redevelopment project of more than £1m in costs needs to have been started within 3 years of the deal being completed. We’re confident the lease will be signed within time, and we’re working towards looking at what the first stage of redevelopment could be. Its a very realistic timeframe for all involved parties.

Q: What are your plans for the stadium beyond just the footballing use?
A: It’s important the club look to diversify ways in which they can generate additional revenue, and I feel a multi-purpose stadium is absolutely the route to go down. There is a range of ideas and artists' impressions out in the public domain from years gone by, but these are discussions that need to be revisited. It's all still to be confirmed but then there needs to be a marked improvement of the facilities that are down there for a non-match day. Because any extra revenue that the club generates, as we know with Clem Morfuni so far, it's being ploughed back into the club.

Q: The County Ground Stadium Custodians Limited are leasing the stadium back to the club, what will this rent be used for?

A: The joint venture will be leasing the ground back to the club over a period of 250 years, safeguarding the situation for generations to come. As part of the agreement, the club will be charged a rental figure that is 50% of the market rate, saving the club expenditure and providing additional funds that can be reinvested into the playing and operational side of things. The rent that is paid to the joint venture will be utilised to improve some of the dilapidations fans presently see at the ground, and ongoing maintenance can be covered from those funds generated.