Kirklees Council writes off £4.3m in loans as part of stadium deal
Kirklees Council has written off £4.3m in loans as part of the recent deal for the Accu Stadium.
A landmark agreement was reached last week between Huddersfield Town, Kirklees Council and the Huddersfield Giants for the future of the stadium.
This saw the football club take full operational control of the venue and surrounding 53-acre site with immediate effect. Huddersfield Town is now the stadium’s sole, 100 per cent shareholder.
Before the deal was done, the stadium – previously known as the John Smith’s – had been owned and managed by Kirklees Stadium Development Limited (KSDL), with shares previously held in the company by Kirklees Council (40 per cent), Huddersfield Town Association Football Club (40 per cent), and Huddersfield Giants Rugby League Football Club (20 per cent).
Kirklees Council has kept the freehold to the site in a 300-year leasehold agreement. This will ultimately protect the future usage of the land.
It was already known that some level of write-off would be required by the council as part of the agreement. Now, it has been revealed that a total of £4.3m in loans to KSDL have been written off by the local authority.
Kirklees Council has also taken ownership of the crucial Gasworks Street site – the Giants’ favoured location for a new stadium – which it says offsets a substantial part of the write-off.
A council spokesperson said: “Over the years, the council provided loans so that the stadium could get the investment and maintenance it needed to be a major community asset for Kirklees.
"The loans, amounting to £4.3m, will be written off as part of last week’s agreement and are offset by the value of the Gasworks Street site which has now been transferred to the council. As such, the write-off is worth around £2m.
“Last week’s deal also avoids future liabilities for local taxpayers and marks a new era for the football club, the stadium and the Huddersfield economy with exciting plans for investment into the stadium and the wider area.
"By acquiring the Gasworks Street site, we can bring jobs, opportunities and further investment into the town alongside the major developments the university are making as part of West Yorkshire’s first Investment Zone.”