Cricket club seeks more time to repay loan

The club was loaned the money in 2005 to help purchase the world-famous stadium and preserve Test matches, which are seen as the pinnacle of the sport, for Leeds.

Under the original terms, the money was supposed to be re-paid by April 2020.

However the club now wants to extend the deadline until 2025. The rate of interest payable would remain at 4.5 per cent under the proposed new deal.

Yorkshire CCC’s chairman, Colin Graves, maintained it is vital more time is given to repay the loan as profits are not great enough to meet the current schedule.

He added: “We have had two years of losses and have asked the council to reschedule the loan.

“We had expected to be able to repay the debt by 2019 but it is impossible for us to keep to that schedule.

“We have simply not made enough profit to be able to repay the loan by this date.”

A report to be considered by senior councillors on Leeds Council next week has confirmed the club’s cash forecasts have deteriorated.

The document also reveals that to help with cash flow, Yorkshire CCC has been offered a loan by Mr Graves.

The loan agreement provides the council with various forms of security and the authority’s Executive Board is being recommended to agree the extension.

The report says: “It is clearly a concern that the club’s cashflow forecast does not now appear sufficient to repay the council’s loan, nor for that matter their bank loan, within the agreed terms and that the club have felt it necessary to approach the council and its bank requesting that their loans be rescheduled.

“The council is clearly being put in a difficult position, in that to withdraw support now and to seek to recover the council’s loan by say drawing upon its security would not only threaten the possibility of test match cricket beyond 2019, but would also result in the city losing the test matches which are secured up to 2019.”

It adds the best way of ensuring the council’s loan is repaid is to ensure the club’s long-term finances are sustainable.

Executive member for economy and development, Councillor Richard Lewis, said: “As part of this revised agreement which has extended the loan period, we have also tightened the terms of the loan in order to give greater protection to Leeds council taxpayers’ money.

He added: “The club has maintained a close and positive relationship with the council throughout this process.”