APPENDIX H Executive, 4 November 2008

KINGSMEADOW STADIUM Report by the Strategic Director of Learning and Children’s Services and the Borough Valuer Leader of the Council

Purpose

To request approval to grant a lease for land at the perimeter of Kingsmeadow Stadium to AFC Wimbledon

Action proposed by the Leader of the Council:

The Executive is requested to: authorise the Borough Valuer to effect a new lease of the land at the perimeter of Kingsmeadow Stadium to AFC Wimbledon. The extent of the land is shown stippled black on Plan No EM2795/3 and would be subject to an agreement being concluded on the terms outlined in paragraph 16 between AFC Wimbledon and Kingstonian FC.

Reasons for action proposed To ensure that Kingstonian FC can continue to play football at Kingsmeadow Stadium.

BACKGROUND

1. Kingston & Surbiton Y.M.C.A. FC played its first match on a ground in Bushey Park in November 1885. In 1887 the Y.M.C.A. changed its name to Saxons FC. In 1890 it changed to Kingston Wanderers FC and once again to Kingston-on-Thames Club (KAFC) in 1893. In 1908 the club split in two with Kingston Town playing at Norbiton Sports Ground and Old Kingstonians on what became known as the "back pitch" at Richmond Road. The teams united under the name of Kingstonian in 1919 and joined the , playing at a new ground in Richmond Road. In 1929 they joined the Isthmian League.

2. The Richmond Road ground fell into disrepair, and was subject to vandalism. The club left the site in 1988, and it was developed for housing. The new Kingsmeadow Stadium was built on council-owned land, on the site of the old Norbiton Sports Ground. In return for building the Stadium, the Club were granted a 125 year lease on the land. The Club went on to achieve the best football results in its history with major FA Cup victories (with attendances in excess of 3,000). The Club reached its pinnacle in this period, winning the Ryman in 1997/1998 and promotion to the Conference (the League below the Nationwide Football League Division 3), and won the FA Trophy in 1999 and again in 2000 at Wembley.

3. The Club finished in 5 th place in the Conference League in 1999/2000, and it was in the context of growing attendances and FA ground requirements for admission into the higher Leagues that the Club sought and was granted planning permission for the extension of the Stadium and a second lease was entered into for the strip of land on two sides of the stadium, which was necessary to increase the ground capacity. H2

OWNERSHIP OF KINGSTONIAN

4. The Club experienced financial difficulties following its failure to achieve promotion from the Conference League, and its relegation back to the Ryman League at the end of the 2000/2001 season. Kingstonian Football Club Limited went into administration in October 2001.The business and the assets (including the Stadium lease), were purchased in April 2002 from the Administrator. The lease for the ground was sold to AFC Wimbledon, and after an unsuccessful attempt by supporters to take over ownership of Kingstonian through a Supporters Trust, the club changed ownership again and has experienced a period of stability recently under the current joint co-owners Malcolm Winwright and Mark Anderson.

AFC WIMBLEDON AND KINGSTONIAN

5. AFC Wimbledon is owned by the Dons Trust - a supporters’ organisation set up as an Industrial and Provident Society. The Dons Trust was formed by supporters of Wimbledon FC, and subsequently took a stand against the proposed move of Wimbledon FC to Milton Keynes. AFC Wimbledon was formed as a separate entity in response to this.

6. When AFC Wimbledon purchased the lease of Kingsmeadow, it is understood that an arrangement was agreed to allow Kingstonian to play at Kingsmeadow for a minimum of 20 years, paying a rental of £10,000 per annum (less than the market value) for ten years inflated by RPI, and to receive the benefit of a pre-season friendly every year for the same period.

KINGSMEADOW LEASE

8. The initial effect of the arrangement has been that Kingstonian have been able to continue to play at Kingsmeadow in recent years. However the arrangement does not offer long term security for the club, which currently plays in the Ryman Isthmian Football League Division One (South) and offers little prospect for the club to regain its higher league status as its financial room for manoeuvre is limited.

THE PERIMETER LEASE - 2003 DECISION

10. Kingston Council granted a second lease (relating to land adjacent to Kingsmeadow) to Kingstonian FC in 2001 to assist them in bringing the ground up to a standard that would meet ground requirements for higher leagues. On assuming ownership of the main lease, AFC Wimbledon offered to purchase a second lease on this basis in 2003, and this was approved by Executive on 15 July 2003. Approval was subject to a payment of £100,000 to the council which would have been transferred to the Ks Supporters Trust (an independent trust representing the interests of Kingstonian Supporters) on condition that they produced a satisfactory business plan demonstrating their capability to successfully run the Club.

11. The second lease was not concluded, as plans to transfer ownership to The K’s Trust, which was a key objective of the agreement, could not be concluded with the then owner. The perimeter lease had been retained by the original company (Kingstonian FC) (in administration) following the disposal of the main (stadium) lease by its administrators. However, following the company’s liquidation, the liquidators did not take up the non-stadium lease. Consequently, the council forfeited that lease in 2007, by re-taking physical possession of the land adjacent to the H3

stadium and is now in a position to enter into a new lease.

THE PERIMETER LEASE – 2008 REQUEST

12. A request has recently been received from AFC Wimbledon for a new lease of this perimeter land, in order for them to carry out improvement works on the ground as approved by planning consent granted in 2003 to make it more suitable for higher league football. The improvement works approved in the planning consent include the building of new stands on two sides of the ground, and the creation of a gate at the side of the ground adjacent to the Searchlight Youth Centre. The changes are designed to improve the safety arrangements relating to safe access to and egress from the ground and would not increase the capacity of the ground beyond previously approved levels.

13. The financial terms concluded for the transfer of the intended 2003 lease were that a sum which would be specifically “ring-fenced” of £100,000 would be paid to Kingston Council by AFC Wimbledon for the benefit of the K's Trust. The intention was that the funds would be made available to the K’s Trust subject to a business plan demonstrating the Trust’s ability to manage the club on a sound financial basis being approved by their Director of Finance. The stated intent was to ensure that Kingstonian would be able to continue to play at Kingsmeadow.

14. The terms now being proposed for a lease of the perimeter land (as shown on plan no EM 2795/3) are that AFC Wimbledon would be willing to offer a similar and substantial benefit to Kingstonian FC through a separate agreement entered into as a condition of the lease being granted by Kingston Council. This arrangement is consistent with the council’s original policy decision to enable Kingstonian to continue to play at Kingsmeadow.

15. The Council has held and stated a clear and consistent view on Kingstonian and Kingsmeadow which is that Kingstonian has an important part in the Royal Borough's history and tradition. The terms being offered as part of the grant of any new lease to AFC Wimbledon would ensure:

i. Long term security for Kingstonian at Kingsmeadow;

ii. A sustained improvement in the finances of the club in the form of a reduction in annual expenditure, ie rental payments.

iii. An arrangement which ensures that the two clubs and the Local Authority can maintain their current good relationship

iv. Delivery of the terms of the original agreement approved by Executive for the arrangement of the perimeter lease. Under these any new lease granted now to AFC Wimbledon would be co-terminus with the original lease of the ground, ie terminate on 22 September 2117 and that a peppercorn rental would be paid throughout the term. However, provision would be made for this to be reviewed in the event that numbers of supporters/visitors attending matches reach a certain level, whereupon a formula would be activated to calculate the rental payment due to the Council.

H4

16. The principal terms, which would be subject to a separate licence between AFC Wimbledon and Kingstonian FC, are:

i. AFC Wimbledon to grant a new 25 year licen ce to Kingstonian FC with effect from 1 st July 2008

ii. The period from 1 st July 2008 until 30 th June 2018 to be rent free

iii. The period from 1 st July 2018 to 30 th June 2033 to be set at £12,500 per annum, rising by RPI each year until the license expires

iv. In the event of the licence being terminated for any reason by AFC Wimbledon, then compensation to be paid through Kingston Council to Kingstonian Football Club on condition that the Directors of Kingstonian FC can provide the Strategic Director of Learning and Children’s Services with satisfactory evidence of plans to ensure the future of Kingstonian FC. If this is not provided the funds will be passed to the Kingstonian Supporters Club, providing it remains a properly constituted organisation, and is able to satisfy the same condition as referred to above. Safeguards will be included in the license between AFC Wimbledon and Kingstonian to ensure that termination can only take place in agreed circumstances

v. In the event of the licence being terminated as a result of Kingstonian FC ceasing to trade or re-locating to another ground, phased and proportionate compensation to be paid to Kingston Council by AFC Wimbledon, with such monies being used to meet the sporting needs of local organisations/residents.

It should be noted that the nil rental arrangement being offered by AFC Wimbledon in effect provides financial support to Kingstonian FC without creating an asset for the club’s shareholders and should ensure against any possible future asset stripping.

CONSULTATION

17. The terms outlined for an agreement between AFC Wimbledon and Kingstonian FC have been endorsed by the main supporters representatives - Kingstonian Supporters Club and the Board of the Dons Trust and it is considered that they represent an acceptable arrangement for both sets of supporters.

ENVIRONMENTAL IMPLICATIONS

18. No further direct environmental considerations arise as a result of the proposals outlined in this report. Implementation of planning consent granted in 2003 includes the submission of a green travel plan which is currently in preparation.

Author of the report: Scott Herbertson, Head of Cultural Services and Lifelong Learning (020 8547 5267) & John Barlow (020 8547 5670)

Background papers (held by Scott Herbertson, Head of Cultural Services and Lifelong Learning 0208-547-5267 e mail [email protected] ) E1. Lease of Kingsmeadow dated 23 September 1992 and 21 st April 2001. E2. Correspondence from Kingstonian FC, Kingstonian Supporters Club and AFC Wimbledon.