A struggling football club is to get a loan in the region of £180,000 from a cash-strapped council.
Stockport County is to be offered the town hall cash to help it through a financial crisis.
The loan will be secured against money due from another club later this year following the transfer of winger Anthony Pilkington in 2009.
County bosses have been locked in negotiations with leaders at Stockport council since last year in a desperate bid to secure its future.
Now the council’s Lib Dem executive has agreed to the loan, which is not interest-free. The council itself needs to save £12m next year after having their government funding cut.
The loan will be provided as a rolling overdraft facility and is expected to be repaid in the summer.
County have battled cash-flow problems since going into administration in 2009.
A club insider told us there was ‘no risk’ attached to the loan, adding: “It’s going to help Stockport County out of a massive hole and help them strive and thrive until the autumn. Next season they start a big fightback. It sends a message to the town that the council and community are supporting them and are proud and will help their survival. This club has been here over 100 years and is still there and the council supports it.”
The move is the latest in a long line of attempts to prop up the club.
Since going into administration three years ago after defaulting on a £300,000 bill, it has suffered a string of relegations and failed takeovers.
In 2010, the council paid £80,000 to have its logo branded on shirts, matchday advertising and programmes in a bid to keep the club going. Last summer, a political row scuppered another similar deal, worth £40,000, when opposition groups refused to support it.
Shareholders were due to be formally told of the deal today. One of them, Mary Gibbons, said: “I’m annoyed that the club has been allowed to get into this state. But it’s very good that the council is helping it out.”
The loan is expected to be repaid when a sell-on clause over the transfer of Pilkington owed by Huddersfield Town is repaid in August. Pilkington left County in 2009 for Huddersfield and has since moved to Premier League side Norwich City for a deal worth about £2m.
Finance councillor and deputy leader, Coun Sue Derbyshire said the council was working with the club's chairman Chris Bramall and the club's community foundation to bring County on to a 'viable financial footing'
She said: "The presence of a professional football club within the borough is of significant importance to the Liberal Democrat Group.
"There are great benefits to the town. Apart from the significant local pride it fosters, the business it generates, particularly on match days, helps Stockport businesses to thrive, bucking the national trend.
"We are committed to doing all that we can to ensure that Stockport County has a long future.
"This loan brings the Council a commercial return for its money and is fully secured against a transfer payment due from another football club later in the year and is guaranteed by the Football League. This will be at no cost to the Stockport Council tax payer."
County declined to comment.
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See what else the money is spent on http://datagm.org.uk/package/stcokport-supplier-spend-january-2011
A loan - not a gift.
Get it?
Pilkington has played for Norwich for most of this season.Why didn't Huddersfield pay the money when he moved.
I had not thought that SMBC was the banker of last resort.
Stockport County have gone bust, at least once already, just let them die.
Well done to the council, and before any ratepayers start complaining, it's a loan. Let's hope this will help get County get back into the League next year and with Jim Gannon at the helm, it's quite possible
It is a loan, with interest payments. I dont see the problem. County is important to this town, so well done smbc.
I've no problem with the council giving the club a loan - a council is supposed to serve it's local community, many of whom support the club.
The problem I have is this:
'Next season they start a big fightback'
If you look at their league position right now, it's likely that they're going to be playing in the Conference North next season meaning their financial situation will be only the more desperate. Regardless of this loan, if they get relegated again it's going to be game over pretty much.
Hope they can pay this loan back. Otherwise its money down the drain.
Do people not.get that its a investment? The council will get the money back and more! Sound buissnes to me!
County will survive in this league this season and kick on next, we maybe someway of league status and take a while to get back . The club has a good fan base and a good manager which are the best ingredients to make the club proud once more. The Council is assured of its money back and is lending a helping hand, thats putting something back into the community on a stronger footing. Soon one of the big premier clubs will go bang ( watch this space) and that will be a finisher, we have a chance on a much smaller budget to stay in business and progress not die. What a silly banker to think any differently. Optimists welcome. One last thought who got players such as Pilks to the club? I rest my case.
As a Stockport Council Tax Payer I am VERY HAPPY that my council is supporting its local Football Team. It’s just a shame that the majority of Stockport Residents are glory hunting Bitters! Jim Gannon will save our TOWNS club and take us back to where we belong in the Football League. YOUR TOWN YOUR TEAM!
About time too!
Maybe this also has something to do with our council wanting to achieve "city" status this year, I mean how many cities don't have a football team?
It seem this story has angered the chairman Lord Snape today, looking at his comments on the official club website. Whilst I would like to share the optimism that the club can survive in the Conference Premier this season, I think there is a little too much complencency around. Before we play another game we could be in the bottom two, and yes results have improved along with performance, but we are by no means out of the mire at the bottom. We could well face another last day nerve shredder. Another thing to remember is the future of EP. Looks like Sale are leaving to Salford, which many County fans will celebrate, but we can NOT afford to buy back EP from mr Kennedy, Then what folks? We have a VERY VERY long way to go before we are anywhere near a sustainable football club.
Stop putting my council tax at risk. If County are not financially viable, then they shold cease operating.
This article sought to stir up animosity towards County and was written in a very irresponsible way. The money is a loan that will be paid back with interest. Instead of trying to ridicule and bring about the club's demise, maybe this journalist might take a look at what Jim Gannon is hoping to achieve both on and off the pitch and the progress that has been made so far to stabilise the club financially. Also, might I add that some of us in Stockport actually BUY this paper and don't get it given away like people in Manchester. Maybe a bit of support for the club might not come amiss.
Awful , cheap reporting! This is a local club that deserves your sensitivity MEN!
Shoddy journalism -
I never cease to be amazed how many people post without a) reading and digesting what they comment on, and b) in this case, how many people have no clue how secured loans, finance in general or football clubs and/or businesses operate. Everybody has their opinion though!
This makes me feel sick to the pit of my stomach when people are losing and have lost their jobs, within the council services. It is so wrong and an insult to all including the communities that suffer because of the cuts.
I dont know our lovely generous council throwing money about at Grand Central, County what next oh yes more redundancies