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There is no summary of this meeting yet. Summaries are written once the council publishes the minutes, which are its official record of what a meeting decided. They usually appear a few weeks after the meeting.
In accordance with the Code of Conduct adopted by the City and County of Swansea, the following interests were declared: Councillors A Davis and P M Black declared a Personal Interest in Minute 20 ‘Call In of Cabinet Decision – Proposed Sale of Swansea.com Stadium’.
In accordance with the Local Government (Wales) Measure 2011, no declarations of Whipped Votes or Party Whips were declared.
There were no public questions.
The Chair referred to the report of the Head of Democratic Services regarding Scrutiny consideration of the Cabinet decision on the Sale of Swansea.com Stadium, in line with the Council’s Call In procedure. Information about the Cabinet decision and the Call In procedure including background, the role of Scrutiny and next steps was detailed in the report. In accordance with Council procedure, the Committee considered specific concerns raised in relation to the Cabinet report / decision made on 16 July, on the ‘Proposed Sale of Swansea.com Stadium’ which had been ‘Called In’ by the Chair of the Scrutiny Programme Committee. The Minutes of the meeting of Cabinet show the following decision being taken on this report: Resolved that: 1) The sale of the Council’s freehold to Swansea City AFC be agreed subject to the detailed heads of terms as set out in accompanying closed report; and 2) Authority be delegated to the Director of Place or his nominees, to agree detailed terms and documentation in consultation with the Cabinet Member for Economy, Finance and Strategy and the Head of Legal. The Cabinet decision taken on 16 July was on hold pending outcome of the Scrutiny process. The Cabinet Member for Economy, Finance & Strategy assisted by Officers, referred to the Cabinet report which provided an update on commercial negotiations between Swansea City AFC and Swansea Council on proposed sale of the Council’s Freehold interest in the Swansea.com stadium. Committee questioning and discussions focused on: • Rationale for Sale of Swansea.com Stadium – The Committee noted the reasoning behind the proposed sale of Swansea.com Stadium, focusing on how club ownership could maximise investment and funding opportunities. Officers referred to the unique circumstances and investor preferences driving the proposal. • Investment & Funding Opportunities – The Committee heard that full control of the asset made it easier for the Club and investors to commit significant sums for reinvestment as lack of ownership presented a challenge for attracting investment and improving facilities. • Investor Preferences and Market Comparison – Officers detailed the American investors who were part of Swansea City ownership and were generally averse to leasehold scenarios making ownership a prerequisite for their investment. It was noted that the majority of football clubs own their stadiums and therefore direct negotiations were common, making market comparisons difficult due to the unique nature of each deal. • Accounting & Financial Implications – Officers reported that from an accounting perspective paying rent reduces funds available for players which was a significant concern for the Club. It was further noted that the structure of ownership versus leasing was treated differently under football accounting regulations therefore impacting the Club’s financial flexibility. • Negotiation History & Council Perspective – The Committee heard that negotiations with Swansea City had been ongoing for some time with the Club consistently expressing the importance of owning the Stadium. The Council’s aim had been to maximise its return while considering the Club’s needs and the broader context of football club ownership models. • Exploration of Alternative Ownership Models – Officers report that alternative models to outright sale had been considered referencing other clubs with Council owned stadiums. It was clarified that the Council’s finances were not reliant on the sale and further financial details would be reserved for the closed session discussion. • Comparison with Other Clubs – Officers acknowledged the existence of various models of football clubs, including premier league teams that do not own their stadium but emphasised the specific investor requirements and circumstances in Swansea’s case. • Council Financial Position – It was reported that Swansea Council had substantial reserves and strong finances and the sale was not driven by an urgent need for capital. The Committee noted that there was no direct link between the sale and investment in other Council projects and further details would be provided in the closed session. • Valuation and Market Exposure Process – The Committee noted the process for valuing the Stadium (which ensured the Council received best price), the challenges of market exposure and the use of a specialist independent valuer. • Independent Valuation – It was reported that due to the specialist nature of stadium valuation, the Council had engaged a firm with expertise in the area as district valuers lacked the necessary skills. The same firm had been used in previous negotiations and provided an independent view for the current process. • Market Exposure Limitations – Officers reported that due to the unique nature of the asset and the presence of a single logical buyer, the Stadium had not been exposed to the open market in the traditional sense. The phrase ‘adequately exposed’ was described as a standard report requirement but in this case it referred to expose to the only viable buyer. • Safeguards and Future Use of the Stadium – The Committee noted the safeguards that would be included to protect public interest and ensure the Stadium’s continued use for sports and community purposes. Restrictive covenants were not part of the negotiations and planning controls would apply to future changes. • Public Interest Safeguards – Officers reported that as the Council would no longer be the landlord exposure to risks from future ownership changes would be reduced and the value of the ground for alternative uses was significantly negative making non sporting redevelopment unlikely. • Fan Involvement in Sale Process – Officers confirmed that this was a matter for the Club and not something the Council could comment on . The Chair thanked the Cabinet Member for Economy, Finance & Strategy and Officers for their input.
The Committee was requested to exclude the public from the meeting during the consideration of the items of business identified in the recommendations to the report on the grounds that it involved the likely disclosure of exempt information as set out in the exclusion paragraph of 12A of the Local Government Act 1972, as amended by the Local Government (Access to Information)(Variation)(Wales) Order 2007, relevant to the item of business as set out in the report. The Committee considered the Public Interest Test in deciding to exclude the public from the meeting for the items of business where the Public Interest Test was relevant, as set out in the report. Resolved that the public be excluded for the following item of business. (Closed Session)
Councillors must say when they have a personal link to something being discussed, such as a job, a property or a family member. A prejudicial interest is one strong enough that the councillor usually leaves the room and takes no part.
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