£150k In Stadium Costs

Tonight's Evening Post carried a report on the new company that will be set up to run White Rock Stadium (although obviously the lunatics at the council don't call it that any more). StadCo will be a joint venture between the council, the football club and the rugby club although the council will retain 51% of the voting rights on key issues.

The article reads as follows:

SWANSEA Council is investing £155,000 to set up the company that will run the new sports stadium at Morfa.

Almost two third of that will go on the £70,000 bill for legal fees and £25,000 on management consultants - and the cost could rise even higher.

They will pay £50,000 for a third of the shares in new company StadCo along with the city's football and rugby clubs.

A further £6,000 is being spent on marketing some of the top seats at the stadium with another £4,000 going towards securing the catering franchise (JackArmy.net adds - why £4k on securing a franchise - I would have thought franchises would be queuing up for such a money spinning venture?)

The figures have been revealed in a confidential detailed report given to the Post outlining how the new £27 million stadium in Landore will be run when completed.

Swansea Council, Swansea City FC and Swansea Rugby Football CLub will each have two directors on the board.

Councillors Gerald Clement, the cabinet member for culture and recreation, and Gareth Sullivan, the member for economic and strategic development will represent the authority.

The council will retain 51 per cent of voting rights on key issues such as the removal of a director and anything that would breach the law or risk the financial position of the new company.

The authority will also be able to buy up half the shares should the two clubs merge (how the hell can a FOOTBALL and RUGBY club merge - and is this something we should worry about?)

Profits from the 20,000 all-seater stadium will be split between the three parties after a slice has been put into a fund for repairs and renewals (may we suggest the council's first profit share goes to replacing all the road signs that they wasted so much cash on?)

The report does not detail how the cash will be shared out.

It says "Any dividend would be shared between the parties on an agreed formula which take into account factors including the initial capital input in constructing the stadium by the respective parties and the level of income raised through the attendances by the two clubs (that'll be the rugby club on small shares then!)

Swansea City FC has helped secure £2.5 million in funding through the Football Stadia Improvement Fund. One of the terms of that is that the Swans fixtures will get priority over the Ospreys.

The council will be entitled to put on up to 12 community events a year at the stadium and keep the income from them.

According to the document the stadium could be used for sporting and music events as well as festivals.

The lease allows for a space to be used for a new Activa gym and sporting hall of fame.

Two of the new hospitality boxes will also be for the council.

The report also says Bastion Stadium Solutions will be brought on board to market more than 1,000 of the seats and some of the corporate boxes. It said "The football club originally engages Bastion to market research the possibility of selling premier seats. Bastion has reported favourably but has stressed it would need to start selling those seats by September 1 to maximise the income that could be generated." (is this a case of the 'prawn sandwich' brigade coming before the loyal fan in marketing these seats?)

A new company is expected to be set up by the rugby and football clubs to work with Bastion in selling the seats with StadCo getting a cut of the money raised. How much hasn't been decided.

Ends.

So there you have it - some things that we knew, some things that we didn't but the 'confidential' report tells you more!