The board of directors of Northampton Town Supporters Ltd (the Trust) has withdrawn from its agreement with its investing partner to purchase the Asset of Community Value (ACV) protected land at Sixfields with immediate effect.
When the original bid was finalised in October, the best long-term interests of the football club were considered paramount, as acquiring this land would protect the club’s historic footprint and go some way to ensuring that the land would be used in a manner consistent with the future development of the club.
However, the investing partner informed the Trust that it was seeking to vary a previously-agreed fundamental issue, that while the Trust was willing to give the investing partner right of first refusal if the Trust ever decided to sell the land the buyback price would be at the open market value of the land.
The partner first wanted the right to buy back the land at its undeveloped value and then changed that to 50 per cent of the open market value.
The board could not under any circumstances agree to this as it would in effect prevent the Trust locating a development partner and also dilute the value of the land and deliver less future value.
The new condition, which up until then had neither been discussed nor proposed, was therefore considered to be both unreasonable and totally unacceptable.
Further, West Northamptonshire Council was seeking to attach conditions to the offer, one of which in particular was unacceptable.
This was that our solicitors would provide the council with a full and unlimited indemnity in respect of the council’s ‘costs and lost income’ in the event that any of the information from the Trust was incorrect and not deliverable.
In the absence of alternative funding arrangements, the board has no option but to terminate the agreement and hence its participation in the process of bidding for the land.
Though disappointed at this outcome, and dismayed by the conduct of the investing partner and the unreasonable position adopted by the council, the Trust will make every effort to ensure that any future disposal of the land will be consistent with the interests of the football club and its supporters.
