Monday, December 15, 2008

Council row over loan to Warks

A row has erupted in Birmingham City Council over the decision to loan the club £20 million for it's planned redevelopment. The row has broken out because the loan was originally going to just £10 million but there are rumours it could really be double that and there are question marks about how the club will repay it!
"Some important questions need to be asked. The council helps many organisations but is it right to give financial support by means of a loan considering our other priorities?" James Hutchings, chairman of the council's finance committee, told the Birmingham Post.

"During the past couple of seasons the cricket club has barely broken even. If they are only just breaking even how can they afford to pay £1 million annual interest charges and at some stage repay the loan? It wouldn't be very friendly for the council to lend them the money if that drives the club into financial failure."

Not very encouraging.