Councils clarify how they will be funding loans for Chesterfield FC takeover
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Both councils will each be providing the Chesterfield FC Community Trust with a loan of £500,000 to help it buy and initially run the club.
It is proposed that the two loans will be jointly secured by a legal charge on the club’s stadium and will be repayable over a 15-year period and will attract a commercial rate of interest.
The Derbyshire Times asked both councils to clarify exactly where the money is coming from.
Derbyshire County Council said their £500,000 is taxpayers money but the terms of the agreement with the trust mean the council will get more money back than what they will lend.
Chesterfield Borough Council has the same agreement in place, but said their £500,000 was coming from “internal borrowing.”
A spokesperson for Derbyshire County Council said: “The loan is from taxpayers money but our agreement with the trust will mean that we will gain a higher return than our usual rate. If the repayments are not made then the council, with Chesterfield Borough Council, will own the club ground
“We are keen to support the trust buy the football club and make a real success of it. The trust run several employment and wellbeing schemes, in partnership with the council, and we want to see these continue as we recover from the coronavirus pandemic, as well as having a successful football club for the area.”
A spokesperson for Chesterfield Borough Council said: “We will be funding the loan through internal borrowing and lending the money to the trust at a higher interest rate than that which we would routinely achieve.
“Whilst we are 100 per cent behind the trust’s plans to acquire Chesterfield Football Club, we must act responsibly, which is why the loan is made at a commercial rate and jointly secured by a legal charge on the club’s stadium.
“We look forward to working with the trust to get Chesterfield Football Club back on its feet and to hopefully bring some joy to people’s lives at what is an incredibly difficult time for the town and borough.”