Forum Topic

500,000k loan to BFC

Could any Councillor who reads this forum tell me if this idea has come just from the labour group or has it been discussed in committe with other Councillors.

Neil Chippendale ● 7179d17 Comments

JohnThe decision was taken by the majority Labour group and will be approved (I think) by the Executive. Luke Kirton isn't part of either of the groups, so no conflict of interest.

Matt Harmer ● 7169d

Has it occurred to anybody that Luke Kirton would have do declare an interest and take no further part in proceedings if he was present at any meeting that discussed this loan? If he was in anyway instumental in getting this loan through, surely this would be predetermination and could render any such decision liable to challenge!

John Charles Murphy ● 7169d

5.2% is the figure as I understand - though I haven't been able to verify this.

Matt Harmer ● 7171d

My understanding is that a council loan will be secured against a second charge against Griffin Park following the bank overdraft. The legal issues are fairly complex, but securing the loan means that a lower rate of interest can be applied.

John Connelly ● 7171d

I see from the newsletter that the loan is to proceed with the money being taken from Council reserves.If Barclays are getting the ground as security then any institution would be looking for a very high rate for the unsecured portion - have the Council said what they consider to be a commercial rate. If they are offering low rates to unsecured lenders do you think they would fund a loft conversion?

Justin Harris ● 7172d

“"The loan would be at a commercial rate of interest so the taxpayers would not lose out on it."Given the financial state of the club this would be a pretty punitive interest rate if it was really at commercial rates. As I understand it Griffin Park has to stay as a football ground unless BFC can find a suitable replacement. This means bankruptcy wouldn't mean that the club was finished. It could go into administration and emerge with a clean balance sheet in the worst case.” …or to put it another way……….“The deal is a complicated one which involves a great deal of legal and financial expertise as it involves a target company lending money to the group that is taking it over. Trust officials estimate that fees alone could top £100,000. Barclay's Bank are discussing Bees United request for an overdraft of £2,500,000 which would see Griffin Park offered as security.”

David Johnson ● 7172d

"The loan would be at a commercial rate of interest so the taxpayers would not lose out on it."Given the financial state of the club this would be a pretty punitive interest rate if it was really at commercial rates. As I understand it Griffin Park has to stay as a football ground unless BFC can find a suitable replacement. This means bankruptcy wouldn't mean that the club was finished. It could go into administration and emerge with a clean balance sheet in the worst case.

Justin Harris ● 7172d

Thanks John.

Neil Chippendale ● 7173d

It wasn't on the council agenda tonight

John Connelly ● 7174d

Did Council pass this loan at tonights meeting or was it kicked out by the Labour group beforehand.

Neil Chippendale ● 7174d

'The majority of Brentford fans don't live in the Borough'...Hmmm..evidence please.Aren't you confusing them with Man. Utd fans?.Can't see that many from Brentford's massive crowd(5,000?)live more than a goal kick away from the ground.

Keith Iddon ● 7176d

The loan would be at a commercial rate of interest so the taxpayers would not lose out on it.Since the majority of Brentford fans do not live in the borough I hardly think next year's council tax will make a difference and some of that increase will be going towards the Olympics anyway.

Kath Richardson ● 7178d

The £500,000 loan might be a sweetener to Brentford fans to save them protesting about a possible 10% increase in Council Tax next year!

Jim Lawes ● 7179d

NeilAre you suggesting that our Glorious Leaders are capable of using public funds to try to influence the outcome of an election?

Phil Andrews ● 7179d

David Johnson ● 7179d

Thanks PhilI was wondering if it's an attempt to keep ABeeC out of next years elections.

Neil Chippendale ● 7179d

Hi NeilIt certainly hasn't been discussed at Area Committee or Borough Council.  Whether it is purely a Labour initiative or whether Luke has been involved in any way I couldn't say.  I probably know less than you do about it at the moment.

Phil Andrews ● 7179d