Thursday, August 30, 2012

News: Barclays support Rotherham United with finance deal


Rotherham United has secured support and working capital facilities from Barclays to fund the construction of their New York Stadium.

The League Two club returned home to the £20m, 12,000-seater stadium for the start of the season, opening with a win in the league against Burton Albion.

In February, Rotherham United, their holding company Asd Lighting Holdings Limited, and RU Estates Ltd secured a mortgage with Barclays Bank.

Tony Stewart, Chairman of Rotherham United, said: "Barclays has been a traditional banking partner for me for over ten years and the South Yorkshire team has provided the football club with a modern and innovative approach enabling us to build this fantastic new stadium.

"This has allowed us to move the business forward, grow with confidence and plan with certainty for the future of the club.

"We're really looking forward to the football season in the new stadium and I'm sure all the fans will be thrilled with the new facilities."

Matthew Chenery, relationship director at Barclays added: "The New York Stadium is a truly impressive venue and achieving completion on time reflects the energy and tireless work which Tony and his team have put into this project.

"The stadium is a massive boost for the town of Rotherham and our facilities will not only help with the completion of the stadium but also provide the facilities for fans to pay for season tickets in a flexible and convenient way."

Finances for the stadium have also come in the form of a £3m loan from Tony Stewart's successful Rotherham business, ASD Lighting and a £5m loan from Rotherham Council.

At a council meeting in July, members confirmed that they had advanced £4.1m by way of secured loans to the club.

The funding is provided on a commercial basis and appropriate financial security has been put in place to ensure that there was is financial cost to the borough's council taxpayers.

In 2010, Rotherham Council bought 10.85 acres on the site close to Rotherham town centre from property developer, Evans for £2.6m. The council then agreed to lease their land at the site of the former Guest & Chrimes Foundry to the club for a term of 250 years. Other terms of the lease have not been disclosed.

The club themselves secured 4.5 acres of adjacent land where the former Gloystarne distribution warehouse was situated.

Cllr Roger Stone, leader of Rotherham Council, said: "A thriving and successful team based on their own home "turf" can be a great barometer of - and contributor to - how well an area is performing on an economic front and how well the town is perceived outside the area."

Rotherham United website

Images: Tom Austen


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