Issue - meetings

Recommendations

It is recommended that Executive approve:

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.

Considered – A report of the Corporate Director of Community Development proposing the provision of a loan facility of up to £150,000 on commercial terms to Scarborough Athletic Football Club (SAFC), together with a linked grant to offset interest charges where repayments were maintained. The report explained that the club was experiencing a short‑term cash flow challenge arising from the refurbishment of its pitch, which had required the team to play away from Scarborough during the season.

The Executive Member for Culture, Arts and Housing, Councillor Simon Myers, introduced the report. He highlighted that the pitch works were progressing well and that the club, which was owned by its members, played an important role in the community, particularly in providing opportunities for young people. The temporary relocation had reduced revenue, and the loan would help the club manage cash flow until the works were completed.

Members recognised the significant community value of the club and welcomed the proposal. Concerns were raised about ensuring that the loan did not create a precedent for ongoing financial support and it was confirmed that the loan was intended solely to address a short‑term need.  It was noted that a similar loan to Selby Town FC had previously been repaid in full, demonstrating the viability of the approach. The Director confirmed that delegated authority was necessary to finalise terms following detailed financial assessment by officers.

(Councillor Malcolm Taylor declared an interest in the matter and left the meeting room during the debate and vote on the item.)

Resolved (unanimously)

That Executive approve

1)             To award SAFC a loan on commercial terms up to a total value of £150k.

2)             If the loan repayments are adhered to, to provide SAFC with a grant that contributes towards the value of any interest charged.

3)             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.

Reasons for recommendations

To support the long-term financial sustainability of SAFC. The loan was designed to provide some additional financial security and support the club as they worked to reset their financial position during this period. It was expected the position would improve significantly once the pitch repairs were completed and play returned at the SSV for the start of the 2026/27 season.