Issue - meetings

B  Copy herewith

1.    Cabinet considered the request for a loan facility from Northampton Rugby Football Club Ltd and how the funds will assist with capital investment improvements to the ground facilities.

2.    Cabinet approved the request for a £1.500M loan to the Northampton Rugby Football Club Ltd, in doing so also delegated to the Chief Executive, in conjunction with the Chief Finance Officer authority and powers to recover assets and funds to the appropriate value, should the Northampton Rugby Football Club Ltd default by more than two payments on either the existing loan or this new loan.     

3.    Cabinet delegated to the Chief Executive, Borough Secretary and Chief Finance Officer in consultation with the Cabinet member for Finance to agree terms and enter into a facility agreement and appropriate security with Northampton Rugby Football Club Ltd (the Club) subject to

§  them being satisfied that full due diligence has been conducted and the risk issues identified in the Link Report have been adequately addressed and mitigated

§  sufficient security has been provided to protect the loan of public funds.

4.    Cabinet approved the appointment of external legal advisors to assist as necessary.

Councillor Eldred as the relevant Cabinet Member submitted a report and stated that discussions had been ongoing with Northampton Rugby Football Club for a number of months to ensure the resulting deal was good for both the Council and the Club.  The Club have been doing excellent work with the community, benefitting and enhancing the town as a whole – for example, by increased use of shops, restaurants and accommodation.  Due diligence has been done by officers and lessons learned from previous experience.  Assets owned by the Club would provide security for the loan.

Councillor Stone addressed Cabinet.  As a member of the Audit Committee she was aware of the Council’s new governance arrangements and the question of whether lessons had been learned in relation to loans. She considered that the Council was in danger of becoming too risk averse, and therefore welcomed this opportunity and its discussion in public.  She considered that the work of Northampton Saints was excellent and generated income.

Councillor Eldred pointed out that the extra revenue generated for the Council would benefit both Northampton Saints and the town generally. 

The Leader re-iterated the importance of discussing this item publicly.

RESOLVED:

1.    Cabinet considered the request for a loan facility from Northampton Rugby Football Club Ltd and how the funds will assist with capital investment improvements to the ground facilities.

2.    Cabinet approved the request for a £1.500M loan to the Northampton Rugby Football Club Ltd, in doing so also delegated to the Chief Executive, in conjunction with the Chief Finance Officer authority and powers to recover assets and funds to the appropriate value, should the Northampton Rugby Football Club Ltd default by more than two payments on either the existing loan or this new loan.     

3.    Cabinet delegated to the Chief Executive, Borough Secretary and Chief Finance Officer in consultation with the Cabinet member for Finance to agree terms and enter into a facility agreement and appropriate security with Northampton Rugby Football Club Ltd (the Club) subject to

§  them being satisfied that full due diligence has been conducted and the risk issues identified in the Link Report have been adequately addressed and mitigated

§  sufficient security has been provided to protect the loan of public funds.

4.    Cabinet approved the appointment of external legal advisors to assist as necessary.

Councillor Eldred left the meeting.