NEWLY-promoted Doncaster Rovers have agreed a deal to nearly quadruple rental payments on their publicly-funded £32m stadium in the wake of criticism that the football club was effectively being subsidised by the public purse.
Just over two months after the Yorkshire Post revealed the club was paying rent of only £250,000 a year on the Keepmoat Stadium – despite the facility making significant losses – a deal has been struck upping payments to just over £900,000.
The st
rictly rental element is now understood to be between £600,000 and £700,000 but Rovers have also taken over advertising rights and sales of match-day car parking worth around another £250,000 a year.
Losses on the flagship community stadium, opened only 18 months ago, already amount to nearly £2.5m. Bungled business planning by Doncaster Council meant the costs of hosting Rovers as the key tenant exceeded the revenue originally agreed under a 25-year lease.
The dire financial situation prompted the council, through the Stadium Management Company (SMC) it set up to run the Keepmoat, to warn the club the stadium's future viability was in doubt unless it increased rental payments.
Opposition councillors had described the financial situation as a "shambles" and that they had been "hoodwinked" into voting for a stadium when its finances did not add up.
But Mayor Martin Winter, still in the Labour Party at the time, responded by insisting the outlook was positive and ordering an investigation into who leaked information to the Yorkshire Post.
Rovers, fresh from securing promotion to the Championship after beating Leeds in the play-off final, believe the new deal allows them greater influence over the Keepmoat's management and branding, particularly through the advertising rights.
Anticipated average crowds of about 13,000 next season – 5,000 up on last year – and significant increases in commercial income will substantially ease the increased rental burden.
The agreement is for a flat-rate annual payment of just over £900,000 and although it includes some provision for increases in line with inflation it will not alter depending Rovers' league position or average crowds. It will run until the end of the existing 25-year lease.
Club chief executive David Morris said: "We're happy with the deal. It secures the future of the stadium and we see it as a win-win for both the stadium and the club.
"We are all still on cloud nine after this weekend's performance, this is our home and we are pleased to have come to an agreement with the SMC on a way forward that works for both organisations.
"We want to see this stadium become a real success and are happy to have found ways to further develop our relationship which sees the stadium benefit financially and the club have a greater involvement with issues such as advertising and car parking."
SMC chief executive Gavin Baldwin said: "We are delighted that we have been able to work with the Doncaster Rovers to agree amendments to their contract at the stadium.
"The new contract marks the dawning of a new era at the stadium. Our thanks go to the board who have been working hard behind the scenes to look improve contracts and business practices to enable us to run the venue more efficiently."
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