Cash-strapped Manchester council has agreed to lend FC United up to £500,000 to build their controversial new ground.
Town hall chiefs stepped in after it emerged the club had failed to raise enough money to pay for the £4.5m stadium in Moston.
FC United planned to have generated £1.6m through a community share scheme towards the cost. But so far only £1.4m has been pledged by fans.
Now the council has stepped in with a promise to bridge the funding gap if the extra money is not raised.
The town hall will also cover any overspend, up to a limit of £500,000 – provided the club comes up with a ‘robust’ plan to pay the money back, with interest.
The promise comes on top of a £750,000 grant the council is already making towards the stadium. Council bosses stressed the money would be a loan, to be repaid in full, that would guarantee an ‘important’ development could go ahead.
Mike Patillo, who campaigned against the stadium, said: "I think it’s amazing that they can find half a million pounds when they’ve cut Sure Start budgets and they are closing down libraries."
The loan was agreed at a meeting of the town hall’s exectuve committee this week. Councillors also agreed to lease the club the land, on Ronald Johnson Playing Fields, for rent of £1 per year. FC United have made it clear they still want to raise the extra £200,000 themselves.
They have relaunched the community share scheme, which gives local people the chance to invest in the club. The stadium, which has proved highly divisive, was granted planning permission in October.
Mike Amesbury, the council’s executive member for culture and leisure, said: "Any loan to FC United would be at commercial rates, with interest, and not cost the council or council taxpayers a penny.
"What it would do is enable this important development to go ahead. The partnership between FC United and Moston Juniors, one of the largest junior football clubs in Manchester will create the basis for an excellent sporting hub in North Manchester. "
Andy Walsh, general manager of FC United, said: "The club welcomes the decision of the executive committee. There is still an outstanding grant from the Football Foundation to be processed.
"There is still a way to go but we are confident that we can raise the money needed to provide much-needed investment in Moston."
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Well done Manchester City Council, the community needs something like this, good on you for investing in the future.
So lets see - the Council withdraw funding for this stadium to be built at 10 Acres Lane due to budget cuts; this was a scheme that had planning consent and few objections. They then shove FC United into a scheme where there are numerous legitimate objections from local residents (all of which are brushed aside by the planning department) and offer to give them a loan to make up any shortfall in funding.
Why could they not just offer them a loan in the first place, let them carry on with their plans for 10 Acres Lane and save everybody a lot of time, hassle and heartache?
Moston Juniors FC are currently paying £1,000 per year rent for the fields.
FC United are to take over the lease and pay ONE POUND PER YEAR??????????????
How was that sum worked out and by whom? Does anyone know if this is legal? There is a lot of underhand dealings going on over this unwanted stadium.
''Punk Football''? yeah right......
We hate Sky, The Premier League, wont have a sponsor on our shirt, hate the Glazer's for putting United in debt. We are different and principled.....
Manchester city council - ''fancy half a million loan??''
FCUM - ''that'll do nicely.''
I note this story hasn't made it onto the MEN's website yet...... as many as Manchester's council tax payers as possible needs to be aware of this scandalous decision (one of many surrounding this stadium)
I see in the article FC have raised £1.4 million in pledges. I wonder how many of these pledges will turn into hard cash.
Dubious Moston
Shame the City of manchester stadium was'nt funded by tax payers
The SportCity location but with a larger stadium, was proposed for the main athletics arena in Manchester's failed bid for the 2000 Summer Olympics.[11] In the successful bid for the 2002 Commonwealth Games the capacity of the post-games converted stadium was reduced from 80,000 to about 50,000. This stadium was built by Laing Construction at a cost of £112 million[4][12] from a design by architectural consultants Arup Associates.[13]
To ensure the long-term financial viability of the project after the Commonwealth Games, Manchester City F.C. leased the stadium from Manchester City Council as a replacement for Maine Road, but only after the northern segment of the stadium bowl was completed and the athletics track excavated to make way for an additional lower circumferential tier of seats.[14] The conversion from a field and track arena to a football stadium cost the city council £22 million.[4][12] Manchester City F.C. spent an additional £20 million[4][12] installing bars, restaurants and corporate entertainment areas. The club moved into its new home during the summer of 2003.
So fans raise 1.4 million 200k short of target not bad really a great effort in this econonmic climate. One weeks wages for Tevex short overall!
Didn't know the council did loans, can anyone apply? Only this week the fire service have had money cut on top of the sure starts & libraries closing because MCC don't have the money to fund them, is it just me or does all this stink!!
Manchester City Council twinned with Cloud Cuckoo Land!
Here we have a football club with decreasing support, can someone please explain where they are to get the finance to repay this loan? It mentions £500,000 but in fact the true figure is £1.25M - Looks like they'll have to get a real job - ooops, there aren't any - better raid the Council Tax piggybank! Perhaps the Council has accrued all this money from the now fortnightly bin collections, the lack of road repairs, etc. Perhaps that's why the lease is for 125 years.
Rose Coloured-Spectacles, Moston
Manchester City are sat in a fabulous stadium because the council used tax payers money to build it. Do they rent it still ? Building for the future is always a good idea, when the rent to bury is not being paid anymore, this loan will get paid off.
I congratulate the council for having the foresite and balls to offer this to FCUM.
Drop the bitter blind and see it for what it is.
Re Andy Walsh's comment about providing much-needed investment in Moston, does this mean he will bring back weekly bin collections, repairs to potholes in roads, street cleaning, etc, and much needed employment?
Tony Watts, Moston
Don't worry Mabel, you had 4 care visits a day but we have had to cut them down to 2 visits a day so we can help build the ground! You will just have to manage!
Dear Councillors,
I've just read in the Advertiser about 12.5 acres being leased for the sum of £1:00 a year to FC United. I will gladly pay you £1,000 a year for the big field on the other side of Lightbowne Road as I've recently bought some sheep (no relation I trust!) and I've nowhere to put them. You will then be able to offset this against the net loss of the Moston Juniors FC Lease, and in these times of cut backs it will provide the Council with much needed funds. Not only that you won't have to cut the grass and it will also be fertilized free. This is a very good offer and I look forward to hearing from you.
Farmer Giles, Moston
What football club makes a profit these days? Especially a non league football club? This week alone both Northwich Vics and Darlington are going to the wall.
Why are Manchester City Council even thinking of giving FC United a penny?
FC United will have no assets to secure the loan on..... has anyone got a brain at the council?
Hang on. What sort of negative headlines are these? The Community Share scheme is still open and FC United have raised just over 1.4m of the 1.6m needed. If necassary, the council will bridge the gap to get things moving on time for the benefit of the Moston (not Boston) community.
Yes, there were a small number of people against the plans (15) but that is another issue. Nothing to do with finance.
I see we have the usual Bertie's posting again.
For a more positive article try this :-
http://www.fc-utd.co.uk/story.php?story_id=3983
The community share scheme is open until the ides of March. Anyone who wants to invest in the fantastic future of Moston and in Greater Manchester as a whole please consider joining this fabulous scheme..., we are nearly there.., make it so!