North Yorkshire Council
Executive
17 February 2026
Loan Facility for Scarborough Athletic Football Club (SAFC)
Report of the Corporate Director Community Development
1.0 PURPOSE OF REPORT
1.1 To set out the background and recommendations to provide a loan facility for SAFC of up to £150k.
2.0 SUMMARY
2.1 This report sets out the background and recommendations to provide a loan facility and accompanying grant to SAFC. This is to provide financial support for SAFC who have incurred a significant loss of income as result of being unable to play of the Scarborough Sports Village (SSV) pitch for the 2025/26 season.
3.0 BACKGROUND
3.1 The SSV pitch is owned by the Council and managed on its behalf. It is the home ground of SAFC who play in the National League North.
3.2 The Council was due to replace the SSV pitch at the end of the last football season (2024/25), however, a series of ground investigations undertaken as part of this project revealed serious structural defects. Work is taking place to remedy these defects, and this work is expected to be completed for the start of the 2026/27 season. However, during this period (2025/26 season) SAFC have been unable to play on the SSV pitch as it does not meet the FIFA standard in its current condition.
4.0 ISSUES AND OPTIONS
4.1 This is an unusual and unique situation arising from the structural defects in the SSV Pitch. Given the unique circumstances of this and the subsequent impact on SAFC, it is proposed to provide short term financial support to SAFC who have experienced a significant drop in income arising from being unable to play on the SSV pitch for the 2025/26 season.
4.2 SAFC are a fan owned club and generate income primarily through match day tickets, hospitality on match days and merchandise. Due to the structural works required to the SSV pitch, they have had to play matches for the 2025/26 season at Bridlington Town. This has reduced attendance and the opportunities for income from hospitality they would normally derive on match days.
4.3 SAFC have put measures in place to mitigate the impact of their loss of income with campaigns and fundraising and have been supported by their sponsors, however, they expect to experience cash flow issues for the next 12-month period. The loan is designed to provide some additional financial security and support the club as they work to reset their financial position during this period. It is expected the position will improve significantly once the pitch repairs are completed and play returns at the SSV for the start of the 2026/27 season.
4.4 The proposal is to provide a loan facility of up to £150k to SAFC. A loan will only be drawn down under the loan facility if required. It will be provided at commercial rates, however, providing repayments are made in line with the loan agreement (both interest payments and the loan principal) a grant will be provided to SAFC as a contribution towards the interest payments.
5.0 CONSULTATION UNDERTAKEN AND RESPONSES
5.1 There has been close liaison with SAFC during this difficult period. SAFC have requested a loan from the Council to support their financial sustainability over the coming 12 months.
5.2 This issue has generated a significant amount of local concern and local members and officers have received a significant amount of correspondence highlighting the negative impact on SAFC and supporting timely action to resolve the issues with the pitch.
6.0 CONTRIBUTION TO COUNCIL PRIORITIES
6.1 The provision of inclusive and accessible sporting facilities contributes to Council ambitions to support thriving places and ensure people are safe, healthy and living well.
7.0 ALTERNATIVE OPTIONS CONSIDERED
7.1 An alternative is not to provide a loan. However, this would put the financial stability of SAFC at risk, a situation which has arisen as a result of circumstances relating to the Council’s asset and which are beyond their control.
8.0 IMPACT ON OTHER SERVICES/ORGANISATIONS
8.1 No significant implications.
9.0 FINANCIAL IMPLICATIONS
9.1 The proposal is to provide a loan facility of up to £150k to SAFC at a commercial interest rate. A loan will only be drawn down if required and for an amount to be agreed. The application of a commercial rate will provide an incentive to minimise the loan drawdown to minimise interest payments. At the end of the loan period, if repayments have been made in line with the loan agreement, a grant will be provided that contributes towards the interest payments incurred. By not covering all the interest incurred this further incentivises the club to minimise the loan drawdown. This reflects the issues faced by SAFC as a consequence of the Council owned pitch being unavailable. The potential provision of a grant will provide an incentive to adhere to the terms of the loan agreement.
9.2 It is proposed that the terms of the loan facility and agreement and potential grant will be delegated to the Corporate Director of Resources, in consultation with the Executive Member for Finance.
9.3 The financial impact on the Council is relatively small and funding is available from existing budget provision identified to resolve the issues with the SSV pitch.
10.0 LEGAL IMPLICATIONS
10.1 The maximum level of grant (being below the equivalent of the commercial interest on the loan) will be below the minimal financial assistance level for the purposes of the Subsidy Control Act 2022. To enter such an arrangement with the Council, SAFC will need to provide a written declaration confirming that the minimal financial assistance threshold, has not been exceeded
10.2 The provision of a loan/grant on these terms is within the Council’s legal powers.
11.0 EQUALITIES IMPLICATIONS
11.1 An EIA screening has been completed. The proposal has no significant equalities impacts and a full assessment is not required.
12.0 CLIMATE CHANGE IMPLICATIONS
12.1 A climate change impact assessment has been completed. The proposal has no climate change implications and a full assessment is not required.
13.0 RISK MANAGEMENT
13.1 The key risk for the Council is that the loan terms are not adhered to and the loan is not repaid by SAFC. This has been mitigated to some extent by incentivising payment in accordance with the terms, through the payment of a grant, if the terms are adhered to.
14.0 CONCLUSIONS
14.1 This is an unusual and unique situation arising from the structural defects in the SSV Pitch, which is owned by the Council and managed on its behalf. Given the unique circumstances of this and the subsequent impact on SAFC who play in the National League North, it is proposed to provide short term financial support to SAFC who have experienced a significant drop in income arising from being unable to play on the SSV pitch for the 2025/26 season.
15.0 REASONS FOR RECOMMENDATIONS
15.1 To support the long-term financial sustainability of SAFC. The loan is designed to provide some additional financial security and support the club as they work to reset their financial position during this period. It is expected the position will improve significantly once the pitch repairs are completed and play returns at the SSV for the start of the 2026/27 season.
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16.0
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RECOMMENDATIONS
It is recommended that Executive approve:
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i) To award SAFC a loan on commercial terms up to a total value of £150k. ii) If the loan repayments are adhered to, to provide SAFC with a grant that contributes towards the value of any interest charged. iii) That the terms of the loan and the accompanying grant be delegated to the Corporate Director of Resources, in consultation with the Executive Member for Finance. |
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APPENDICES:
Appendix A : Equalities Impact assessment Screening
Appendix B : Climate Change Screening
BACKGROUND DOCUMENTS:
Executive Report: Replacement of the Community Football Pitch (Scarborough Sports Village). 17 June 2025.
Nic Harne
Corporate Director – Community Development
County Hall
Northallerton
Report Author – Jo Ireland, Assistant Director (Culture, Leisure, Archives and Libraries)
Note: Members are invited to contact the author in advance of the meeting with any detailed queries or questions.