HUDDERSFIELD GIANTS could take more control in operating the John Smith’s Stadium after cash-strapped Kirklees Council made it clear they want no further involvement in its running and will put a stop on their funding of the failing management company which controls the venue.
Kirklees Stadium Development Limited (KSDL) is owned by Kirklees Council (40 percent), Huddersfield Town Football Club (40 percent) and the Giants (20 percent) and negotiations over the future of the facility, which is almost 30 years old and in need of significant maintenance work, are ongoing.
The council, which has loaned millions of pounds to KSDL, warned in March 2021 that the management company was on the brink of going bust.
But talks have so far failed to produce any agreement on how to move forward. A report by the authority has made it clear that KSDL are only surviving through money pumped in by the Giants and Huddersfield Town, who were recently taken over by American businessman Kevin Nagle.
It stated: “The council has been clear that it does not wish to be involved in the future management of KSDL or the stadium and has made clear that beyond the financial restructuring that has already been agreed, the council will not contribute further funding to facilitate the day-to-day operation of KSDL.
“Its continued ability to operate is based on commitments by the other parties to ensure the company has adequate cashflow to ensure that it can meet its obligations and by a council agreement not to pursue debts outstanding at the present time.”
In December of last year, the council’s cabinet gave approval for senior officers to enter negotiations with the two clubs over handing “operational control” to Huddersfield Town.
Now the cabinet is being asked to amend that to include the Giants, with the report adding: “The previous agreement was that officers could negotiate a settlement position that provided for HTFC to take operational control which, given the corporate structure, would require them to acquire all of the shares.
“An alternative option is for the other two parties to agree a structure whereby either HTAFC or Huddersfield Sporting Pride Ltd (the Giants) take effective control individually or together, but this is not provided for by the current cabinet authority.
“It is suggested that having wider options for negotiation of a solution that meets the needs and desires of both clubs would be desirable.
“It is also important that in this arrangement, the owners provide evidence of an effective operating model that meets their needs and gives the council as freeholder (owners of the land on which the stadium is situated) some assurance.”
