Questions have been asked about whether the £100,000 set to be given to Penrith Football Club by Eden Council smacks of “preferential treatment”.
Penrith Football Club moved from their previous location in the centre of Penrith to Eden Council-owned land at Frenchfield to facilitate the development of the town’s New Squares development after the the council developed a new stadium which it leases to the club at £4,000 a year.
However, the club struggles to generate enough revenue to operate and maintain the stadium and run teams that operate from it — something which has been exacerbated by the COVID pandemic, a meeting of Eden Council’s executive heard on Tuesday.
It was agreed that the lease of Penrith Football club be modified to a peppercorn sum and reset to 30 years and that the executive recommend that full council approves the £100,000 grant from reserves to Penrith Football Club.
Debra Wicks (Con, Greystoke) asked for the background about “this preferential treatment” for Penrith Football Club to be explained and how Eden Council plans to finance the £100,000.
Lissie Sharpe (Lab, Alston Moor), the council’s communities portfolio holder, said: “It is planned that the grant funding is made from reserves through a supplementary estimate and that will be subject to council approval.
“It should be recognised that as the council own the stadium and lease it to the club that any improvements made to the stadium through the proposed grant represent investment in our own asset and is not preferential.”
Ms Wicks, who was a previous commercial director for Brooks Mileson at Gretna Football Club, which at one time reached the Scottish Premiership, said: “I do know a bit about financing of football clubs and I believe Penrith Football Club are semi-professional and do pay the players.
“With the council tax rise this year, increasing income into the council of £104,000, do we honestly think this is a good investment of the council tax rise – because they are virtually equivalent?”
She added: “Less than five years ago, there was an assignment of their rent which was written off for the football club so it’s an ongoing scenario financing Penrith Football Club, and is the portfolio holder aware of the marketing and income generation that’s being made at the club and can they assure us that this supplementary estimate will be used on improvements to the stadium and not in funding the actual club?”
Ms Sharpe said she could confirm it is to be used for the stadium itself and not for the club, but said she was not going to comment on things which had happened in the past because she was not a councillor then.
She said Penrith Football Club was an important part of the social and economic fabric of the town and the wider district.
The club also played a vital role in supporting and improving the health and wellbeing of local people through its activities.
