Initial meeting of the new Fan Advisory Group

Totally different. They are a not-for-profit charitable company.

 

Yh I read that previously, no explanation as to how it's cost neutral though, seems like it's just being used a term to say the council aren't putting in any more funds, other than the rent they receive of course.

 

They do indeed, and are making no realisation on that asset (no return on their recent purchase of the Cryne's half either, I wonder how much of the public purse was spent on that) for at least the next 30yrs.

Cost neutral indeed.

 

Isn't that the very definition of cost neutral? Your argument is that it should be cost negative to the council which is a separate argument

 

The council are receiving a rental income from BFC, and then giving it back essentially. I can't see how investing in a football stadium benefits anybody but the tenant. If at the end of the 30yrs BFC decide to move to a new stadium, the improvements made with council funds (the rent received) is wasted, it's not like they can rent it out to another football club.

All the benefit seems to be to BFC.

 

Well it benefits about 20,000 Barnsley fans and benefits local businesses throughout the town centre too.

 

Did the council spend any money to purchase the Cryne's half of the stadium, or has it been effectively gifted, on the provision that the council reinvest the rental income in maintenance?

If that is the case then the council have gained full contol of an asset for nothing. While there is effectively an opportunity cost of half the rent (as the Crynes would be due 50% of the rent if they hadn't sold). This is further offset by the significant economic benefit the club brings to the town.

 

I assume BFC will also pay business rates on top of rent

 

Well it was the Initial meeting, so I'm hoping the Initials were the #1 topic!

 

That may well be the type of detail involved.

 

If the club moves out in 30 years the council has a prime piece of real estate worth goodness knows what.

 

Indeed, they own the land, worth a fair few bob. But the stadium on it, that they have invested in, will be worthless, will need flattening.