Proposal on funds for the Old Spotted Dog Ground
Posted: 04 Feb 2020, 15:39
This is a proposal that will go to the forthcoming members' meeting taking place on Thursday 20th February and is proposed by the CCFC Finance Committee. If you have any questions, please post them in comments below by 19 February at the latest.
Since the club held a public meeting on 15 October to discuss the offer by Star Pubs and Bars, the property arm of Heineken, to take over the Old Spotted Dog Ground, ongoing negotiations with them have focused, inevitably, on the poor state of the ground.
At issue has been our obligations to maintain the ground “in good order” when the Old Spotted Dog Ground is quite obviously in a poor state of repair and does not currently meet the ground gradings for Step 6: a level we will require if we are promoted at the end of this season.
Essentially, we have argued that Star Pubs and Bars is not offering a functioning sports facility but a pitch and building that will require significant repairs before it becomes one.
Heineken appears reluctant to commit significant or indeed any spending to improve the state of the ground. Our negotiations with them have, nevertheless, requested a capital contribution to ground improvement and we are also discussing how long they offer us a “holiday” from paying rent to we can make further improvements ourselves. We do not yet know, however, whether they will agree to either of these requests.
A recent site visit has indicated the need for work on the leaking clubhouse roof and we will need to build new changing facilities – the existing ones are part of the warehouse next to the Old Spotted Dog Ground that are not part of the lease and that we have no control over. A new pitch fence is an urgent requirement for Step 6 too.
We can reduce other costs with offers of support from members and volunteers (for example, for redecorating the clubhouse and clearing debris). We know we can also make a strong case for grant funding for restoring what is the oldest senior football ground in London – but we cannot start submitting funding applications until we have agreed to the lease and have a guarantee of long-term tenure.
We will, therefore, need to allocate a budget from our existing funds to ensure the Old Spotted Dog is ready for our return.
Taking back Clapton’s spiritual home, after a season of boycotts when it was placed in liquidation by the previous tenant, was absolutely central to the motivation for setting up Clapton CFC in the first place. Finally having a ground of our own, owned by members, can offer long term stability for the club and also the chance to build lasting links with the local community.
What are we proposing?
The Finance Committee is, therefore, proposing we make available £35,000 from our funds for work on improving the Old Spotted Dog Ground, which is available for use by the club’s new subsidiary company, the Old Spotted Dog Ground Trust. Initially, we would make £15,000 available, with the remaining £20,000 held until such time as it is needed.
This commitment is on top of up to £5,000 to cover legal costs for securing the lease that was agreed by a huge majority of members in October 2019. To date, legal costs have been £1305.
Can we afford this?
As a result of the sales of our shirts. the club currently has £34,407 in our operating reserve account and £50,000 in an ethical fixed interest account, both with the Charity Bank.
In addition, our main current account will have around £22,000 by the time of the members’ meeting on 20 February, after imminent payments in the next few weeks that include a sizeable corporation tax bill of £18,965.61.
We agreed at the AGM in June last year that we would not use the operating reserve unless there was a financial crisis in the club. This means available cash assets are approximately £72,000.
What are the risks of making this decision?
There is an argument that by publicly committing to allocate significant funds to the Old Spotted Dog Ground, Star Pubs and Bars has less incentive to make its own capital contribution to ground improvement.
However, the club is in a strong position to apply pressure (via its support from the local council and MPs) by contrasting our willingness to invest in the ground with the apparent reluctance of its owner to make a similar contribution.
There is a risk that with the club’s overall reserves reduced, there is less funding for new developments such as additional teams. However, we are continuing to raise funds from matchday donations, merchandise and membership and the extraordinary windfall from our shirt sales was never a bottomless pit.
Any new initiatives we organise will need to consider how they generate some income, including grants or sponsorship. The Old Spotted Dog Ground certainly has the capacity for generating its own income when it is returned to regular use.
Using a significant proportion of the money we raised from shirt sales on restoring the Old Spotted Dog Ground seems like a fitting way to use this unexpected income.
Since the club held a public meeting on 15 October to discuss the offer by Star Pubs and Bars, the property arm of Heineken, to take over the Old Spotted Dog Ground, ongoing negotiations with them have focused, inevitably, on the poor state of the ground.
At issue has been our obligations to maintain the ground “in good order” when the Old Spotted Dog Ground is quite obviously in a poor state of repair and does not currently meet the ground gradings for Step 6: a level we will require if we are promoted at the end of this season.
Essentially, we have argued that Star Pubs and Bars is not offering a functioning sports facility but a pitch and building that will require significant repairs before it becomes one.
Heineken appears reluctant to commit significant or indeed any spending to improve the state of the ground. Our negotiations with them have, nevertheless, requested a capital contribution to ground improvement and we are also discussing how long they offer us a “holiday” from paying rent to we can make further improvements ourselves. We do not yet know, however, whether they will agree to either of these requests.
A recent site visit has indicated the need for work on the leaking clubhouse roof and we will need to build new changing facilities – the existing ones are part of the warehouse next to the Old Spotted Dog Ground that are not part of the lease and that we have no control over. A new pitch fence is an urgent requirement for Step 6 too.
We can reduce other costs with offers of support from members and volunteers (for example, for redecorating the clubhouse and clearing debris). We know we can also make a strong case for grant funding for restoring what is the oldest senior football ground in London – but we cannot start submitting funding applications until we have agreed to the lease and have a guarantee of long-term tenure.
We will, therefore, need to allocate a budget from our existing funds to ensure the Old Spotted Dog is ready for our return.
Taking back Clapton’s spiritual home, after a season of boycotts when it was placed in liquidation by the previous tenant, was absolutely central to the motivation for setting up Clapton CFC in the first place. Finally having a ground of our own, owned by members, can offer long term stability for the club and also the chance to build lasting links with the local community.
What are we proposing?
The Finance Committee is, therefore, proposing we make available £35,000 from our funds for work on improving the Old Spotted Dog Ground, which is available for use by the club’s new subsidiary company, the Old Spotted Dog Ground Trust. Initially, we would make £15,000 available, with the remaining £20,000 held until such time as it is needed.
This commitment is on top of up to £5,000 to cover legal costs for securing the lease that was agreed by a huge majority of members in October 2019. To date, legal costs have been £1305.
Can we afford this?
As a result of the sales of our shirts. the club currently has £34,407 in our operating reserve account and £50,000 in an ethical fixed interest account, both with the Charity Bank.
In addition, our main current account will have around £22,000 by the time of the members’ meeting on 20 February, after imminent payments in the next few weeks that include a sizeable corporation tax bill of £18,965.61.
We agreed at the AGM in June last year that we would not use the operating reserve unless there was a financial crisis in the club. This means available cash assets are approximately £72,000.
What are the risks of making this decision?
There is an argument that by publicly committing to allocate significant funds to the Old Spotted Dog Ground, Star Pubs and Bars has less incentive to make its own capital contribution to ground improvement.
However, the club is in a strong position to apply pressure (via its support from the local council and MPs) by contrasting our willingness to invest in the ground with the apparent reluctance of its owner to make a similar contribution.
There is a risk that with the club’s overall reserves reduced, there is less funding for new developments such as additional teams. However, we are continuing to raise funds from matchday donations, merchandise and membership and the extraordinary windfall from our shirt sales was never a bottomless pit.
Any new initiatives we organise will need to consider how they generate some income, including grants or sponsorship. The Old Spotted Dog Ground certainly has the capacity for generating its own income when it is returned to regular use.
Using a significant proportion of the money we raised from shirt sales on restoring the Old Spotted Dog Ground seems like a fitting way to use this unexpected income.