ANTI-STADIUM group GASP's Chairman Gary Nuttall has questioned why Wycombe District Council has used Swansea City Football Club's stadium as an example of a success story ahead of Monday's key meeting.

Council officers have highlighted the Liberty Stadium in the business case report to be examined by the Cabinet.

Mr Nuttall explains why he and fellow campaigners feel it is a surprising parallel to draw and warns of the risks GASP believe the council could be taking.

'Investigations have revealed uncomfortable parallels between Swansea Council’s involvement in The Liberty sports stadium development and that being proposed by WSDL to Wycombe District Council.

The £44.8 million Liberty Stadium was largely funded by Swansea Council with the promise of it delivering economic, social and financial benefits and providing a new home for Swansea City FC (The Swans) and South West Wales Rugby Ltd (the Ospreys).

The previous ground “the Vetch”, with a 12,000 capacity was considered dated and insufficient for the aspirations of the clubs which were keen to relocate to a new 20,000 seat stadium (which it has yet to fill to capacity).

Other expected benefits included providing a facility for major sporting events, a major focus for the community, securing hospitality business, enabling a rationalisation of the community sports facilities and to “be a sustainable landmark development and source of civic pride”.

The venue opened in 2005 but SSMC, the stadium management company (a joint venture set up between the clubs and the council), has failed according to an auditors report to pay any rent to the Council to date.

Just before the stadium was completed the Council had to provide a £2 Million loan to ensure that the stadium could be fitted out.

The management company was unable to pay off the loan and the Council secured title of the stadium in order to write-off the money in 2006. There is an entry in the 2010 accounts showing a £2.3 Million transfer of assets to the Council to pay off a loan and it’s unclear whether this is an additional loan.

Under the terms of the lease the management company was expected to make provision for maintenance, which it failed to do.

An investigation in July 2010 discovered a shortfall in the £800,000 repairs & maintenance fund.

The Council leased the stadium to SSMC under a 50 year lease.

The terms of the lease were such that rent is payable at effectively 30% of any distribution of profit by SSMC.

SSMC is in “a cumulative loss position” and no profits have ever been distributed.

The revenues received by SSMC are based upon a varied percentage of the match gate receipts, dependent upon the level of attendance.

The report, published in January 2011 by PWC on behalf of the Welsh Audit Office concluded “The financial position of SSMC remains precarious and the current revenue sharing arrangements are considered unsustainable.”

The parallels between Swansea and Wycombe are uncanny.

It’s therefore surprising that WDC has highlighted in its own Strategic Options Business Case the Swansea project as an example of a successful project!

WDC’s Cabinet will make a decision at its meeting on 18th July.

Let’s hope that they’re well aware of the risks that such projects expose the Council and ratepayers to.'