£35m funding plans for Headingley go under microscope
Plans for a major £35m funding deal to support the development of the Headingley Carnegie Stadium are to go under the microscope later this month.
Leeds City Council’s executive board will come to an agreement on the proposals on 19 April.
An as-yet unnamed third party investor, described only as a private financial services organisation, has committed to the redevelopment.
Leeds Rhinos has also pledged £5m towards the cause. £2m costs have already been incurred by the club and the Yorkshire County Cricket Club in relation to the project,
The total £40m development will see improvements to the North-South stand.
Work needs to start in June 2017 to ensure completion of the site in time for the 2019 Cricket World Cup.
As part of the proposal, the council would enter into agreement with the third party investor to lease the new facilities from them.
Yorkshire CCC and Leeds Rhinos would then individually or through a new joint company owned by both the clubs, take subleases from the council to cover the cost of the development in full.
Both clubs will have to provide “adequate security” on both assets and income should there be any default in their rent repayments or further obligations.
The council estimated that once the new stands are finished, a predicted £107.3m will be made in revenues between 2017 and 2023.
Councillor Judith Blake, leader of Leeds City Council, said: “Working with partners we have been determined to find the best and most viable solution to ensure Headingley can continue to host high-class international and domestic sport.
“I’m delighted we’ve managed to broker a deal with a private investor that, subject to executive board approval, will fund the redevelopment of the stadium. Crucially the cost of financing the completed development will be met by the rugby and cricket clubs themselves at no cost to the council taxpayer.
“Headingley is a historic venue which is celebrated and recognised throughout the world. When you take into account the significant economic benefits top-class rugby and cricket matches bring to the city and region, we could not stand by and do nothing to protect its international sporting status.
“While there are still some hurdles to conclude the proposal this summer, we believe the deal we have put in place, subject to executive board approval, is the best possible option moving forward for Headingley, the rugby and cricket clubs and the taxpayer.”
