New era beckons at Chesterfield FC as two councils agree to provide loans for takeover deal

The Chesterfield FC Community Trust – the charitable arm of the club - is closing in on becoming the new owner.

Chesterfield Borough Council and Derbyshire County Council have agreed to loan the trust £500,000 each to support its bid to buy and run the club, it was confirmed today.

Councillor Tricia Gilby, leader of Chesterfield Borough Council, said: “Chesterfield Football Club has been an integral part of life here in Chesterfield borough for over 150 years.

“Football has the power to change people’s lives for the better. At such a difficult time for all of us, we believe the club and trust have key roles to play in supporting Chesterfield’s social and economic recovery.

“We’ve been impressed by the trust’s approach in looking at all aspects of the club’s financial and business affairs, and we think it’s the right thing for the council to do to back the trust at this time.

“We are also pleased to be working collaboratively with Derbyshire County Council on this venture and we very much welcome their involvement.”

In a statement, Chesterfield FC Community Trust chairman, Mike Goodwin, said the aim was to be in charge of the club “as soon as possible.”

“The decision announced today means that the community trust’s bid to purchase Chesterfield FC has taken a big step forward,” he said.

“I would like to thank the cabinets, leaders and executive officers of both councils for their valued support.

“The legal process is progressing with the aim of transferring the ownership of the club to the community trust as soon as possible.”

And Spireites company secretary, Ashley Carson, welcomed the news.

"This is a major development and fantastic news for everyone concerned,” he said in a statement. “I am working with the trust's chairman, Mike Goodwin, to conclude the sale of the club as soon as possible.

"Dave Allen and I made it clear that we wanted to hand over the running of the club to the trust ever since they first made their intentions known and I am delighted that we have taken a significant step closer to realising that."

The borough council said it is proposed that the two loans will be jointly secured by a legal charge on the club’s stadium as was the case in 2009, when the council provided a £1m loan to the club, which was subsequently paid off.

The loans will be repayable over a 15-year period and will attract a commercial rate of interest, the borough council added.

Should the trust choose to sell the club at some point in the future, then the councils’ loans would be repaid in full at the point of sale.

The two councils will also be invited to make appointments to the trust.

The borough council’s cabinet held a meeting on Tuesday morning and agreed to provide the loan, while the county council made their decision “in principle” back in March.

Councillor Barry Lewis, leader of Derbyshire County Council, said: “Derbyshire County Council has worked with Chesterfield Football Club Community Trust over many years on a range of education, health and wellbeing and employment support programmes.

“The loans to the trust will mean that these programmes will be critical in supporting the communities of Chesterfield and north eastern Derbyshire to recover from the coronavirus pandemic.

“We therefore believe it makes good sense for our two councils to come together to help fund the trust.

“We’re confident that the trust can breathe new life into the club and bring new visitors from far and wide to enjoy not just the football, but all that the wonderful county of Derbyshire has to offer.”

The borough council’s decision is subject to a five-day call-in procedure which means the cabinet could be asked to reconsider if any members raise any concerns but it would be very rare for this to happen.

If the outcome is not questioned then it appears the trust is closing in on a deal to purchase the club from owner Dave Allen and end his 11-year involvement in the club.

Both councils have legal due diligence processes to complete to ensure that their respective interests are properly protected.

Local councillor, Howard Borrell, is a member of the opposition (Lib Dem) at Chesterfield Borough Council and so played no part in Tuesday's cabinet decision but, as a long-standing Spireites supporter, he told the DT that he supported the outcome.

"It's great news that the council has been supportive of the community trust as they look to take the reins at the football club and put an end to a lengthy period of decline and concern,” he said.

"I believe firmly that the club can make good progress once the changeover is in place but it's going to be a very different world. Finances will be tight, costs will have to be trimmed and we'll need more people to offer their time and skills on a voluntary basis.

"The manager, I'm sure, knows he will need to run a tight ship and hopefully supporters will show the patience required as immediate on-field success can't be guaranteed.

“It's a very similar situation to the CFSS days of 2002 - it's vital that everyone rallies around as they did 18 years ago; the club is now back in the hands of real supporters but that doesn't make the challenges ahead any easier. We must all work together to ensure we overcome them.”

Outlining its vision for the club back in February, the trust said the club “must live within its means” but “must strive to assemble a squad capable of returning to the Football League.”

The trust also said it plans to break even within three years “by maximising income streams and reducing costs.”

New initiatives mentioned included the opening of a supporters’ bar, an increased number of major high level events, an overhaul of the conferencing and banqueting with more emphasis on encouraging families and the wider community, particularly schools, to attend games.

Football finance expert, Dr Dan Plumley, of Sheffield Hallam University, previously said the deal “had the potential to be successful but it will take time and it won’t be easy.”

The trust has been working on the deal since last September but has faced funding setbacks along the way as well as delays caused by Covid-19.

After first investing in the club in 2009, Mr Allen took over as chairman from Barrie Hubbard in 2012 before resigning in November 2016.

He put the club up for sale in February 2017 and this is the closest he has come to selling it.

In the first half of the decade the Spireites moved into their new stadium on Sheffield Road and achieved success, twice winning the League Two title, the Johnstone’s Paint Trophy and reaching the League One play-offs under Paul Cook. But after Cook left to join Portsmouth the Blues suffered two relegations in three years as they tumbled into non-league football for the first time since 1921.

The club has experienced two years of struggle in the National League and posted losses of almost £1.9m for the trading year ending June 30, 2019.

Mr Allen has been putting between £125,000 and £150,000 in each month to cover the shortfall, although that has reduced to around £25,000 during the coronavirus pandemic with club staff, players and caretaker manager John Pemberton all furloughed.

The wage bill has been cut since the end of June following the release of several players, with Town now having just 10 players on the books.

The trust will be keen to find out when the new National League season will start and if fans will be allowed back in stadiums as this will provide an important revenue stream. A start date for the middle of September with reduced crowds of around a third of stadium capacities has been rumoured.