Financial Covenant on BM - Council Meeting Tue 3rd Mar

[super_les_mcjannet]

Looking to lift a covenant on the Rugby Club to secure adequate funding.

Looks like positive steps to me especially with a fans forum and funding launch on Thu 5th March.

http://tinyurl.com/mywyfey

I know we all want promotion and results are downbeat a little but as a club things do seem to be moving forward.

[divas]

Sounds like a critical meeting for the future of BM, fingers crossed.

My concern here though is the rugby club don't have a pot to piss in, so I'm struggling to see how they'd manage to pay the loan back - it's not like they generate huge income is it?! We just need to make sure our interests are protected if they default. Last thing we want is for them to go pop and is having to pick the ground debt up, or worse still, the land/stadium to be re-possessed after we've shelled out money on it.

Will be interesting to see what is actually proposed to be mortgaged - given the site is a lot bigger than we actually need for football, hopefully the mortgage doesn't affect the main pitch/clubhouse.

I'm curious as to what out funding target will be given we'll only have around 2 months to secure it before work is due to start.

[theoriginalfatcat]

If everything goes through, and the sports facilities become "A hub" - won't the Rugby club get a slice of the action from money generated?

I don't pretend to understand the situation but they must be getting something out of all this.

[Darlogramps]

From the article, it looks like the council will give wiggle room, by lifting the amount they would start receiving any profit.

So they wouldn't get 100%, but instead most of it.

The timescale also concerns me. Firstly, as Divas says, for raising the money and secondly for completing the work.

Any delay would leave us tight for time to complete the work for the new season.

[super_les_mcjannet]

I would presume the Rugby Club will be much better off financially with us there, hence can cover any finance required.

Assuming our costs will be quite similar to being at Bishop and this should reduce the costs on DRFC.

I do think timelines will be tight but as long as we are trying to work towards the start of the season if it slips then it slips, as long as progress can be seen to be made then I am sure we can all handle it.

I can see the agreed 50k shares the club have that can be made available without going back out to the shareholders will be part of the plan.

[JE93]

Seems like good news coming out of the club, at a good time too, having a little wobble in form on the pitch this could be one of those things that keeps the fans on the terraces happy. So if by next week we've won our Saturday game and we have positive news on Blackwell meadows could be a good feeling around the club that can push us on to the end of the season.

As far as starting next season at BM goes I'm really not sure, it all depends at what stage of development we can move and which parts of the project we can get started on asap. It wouldn't surprise me if we had to start next season away from BM but as long as ground has been broken and progress is being made I think we could be back by Christmas.

The funding side is interesting, the article talks about 70k from sport England. There's also the 50k's worth of shares that could be put up, as well as whatever amount of money the board could see fit to pledge from the 70k'ish, that we have in the bank. Added to that there's also the consideration of how much the rugby club will put up towards the work. On that basis it seems we could have a decent amount of capital towards the project.

Whatever happens in really can't be said enough what a great job the volunteer board of this club have done to get us to this point and they deserve a lot of credit.

[quakerfan]

It may be just a passing remark in a thread on a different subject but I do so agree with the comment about the effort put in by our volunteers . It is true that other clubs have many fans putting in voluntary support but if there was a trophy competition for the amount of this kind of effort we would be on our way to Wembly !

[bga]

I echo the above posts regards the work done by all the volunteers. Hopefully we will have some positive news next week. Even though it may have nothing to do with us, what I don't fully understand is how the Rugby Club are separating their playing status (reverted now to amateur club again), with the part of them now wanting to borrow money, repay a loan and make a profit etc. Does this mean they are now two legal entities i.e. Amateur Sports Cub (which I had believed usually meant a "non-profit" organisation) and a separate profit making company to cover all their off the field Commercial activities?

[shawry]

I echo the above posts regards the work done by all the volunteers. Hopefully we will have some positive news next week. Even though it may have nothing to do with us, what I don't fully understand is how the Rugby Club are separating their playing status (reverted now to amateur club again), with the part of them now wanting to borrow money, repay a loan and make a profit etc. Does this mean they are now two legal entities i.e. Amateur Sports Cub (which I had believed usually meant a "non-profit" organisation) and a separate profit making company to cover all their off the field Commercial activities?

Not sure they have gone Amateur in that sense, they've just gone down the volunteer/part time I route I thought to better manage their finances

[bga]

Shawry That's my point I guess I am a confused as to exactly what they are now. The article in the Echo a few months ago said Darlington Rugby Club had reverted to Amateur status which I always thought meant a not for profit organisation?

[lo36789]

Amateur surely just means they don't pay people anymore. They still have costs so still need to generate revenue.

[bga]

As I said earlier I guess it is not really a concern for us exactly how they are structured as long as the Partnership works. I just recall going to a presentation by Sport England, a few years ago admittedly, where it seemed that amateur clubs were treated as "non-profit" and yes they were expected to raise revenue to cover their operating costs, but they were not expected to make a profit above some threshold, or they might have to part repay Sport England. If still true and if it applies to the Rugby club maybe that might benefit us in some strange way? Too many "Ifs" and "Mights" I know in what I have said so I'll leave it at that and hope things might be clearer after next week.

[Bogratsteve]

Time is the real factor here from when plans are passed, I presume it will be a Design and build tender process and we have not already employed a QS and designer, this will take several weeks to get tenders in, process them and award contract.

Then there is mobilisation time for the Main contractor, ground works etc if its over a month of work (hope it would not be) then CDM regulations come into force and this takes longer, start of the season may look a long way away but it certainly is not in construction time scales.

Oh of course there is the time factor to raise funds which won't be an over night thing and secure grants............... lets hope we have promotion to spur interest in the club at the same time.

[super_les_mcjannet]

Might be wrong but a QS has been involved for some time as far as I know, we also have had 3 prices completed for each part of the work.

So much work has already gone on that we just have to put some faith in those managing the process. I do agree that timescales are tight but the fact we have planning in, Rugby Club requirements being discussed with the council shows that a large amount of work has been done.

Hopefully get a lot more info on Thu 5th and we can all get behind the move home.

[Bogratsteve]

Might be wrong but a QS has been involved for some time as far as I know, we also have had 3 prices completed for each part of the work.

So much work has already gone on that we just have to put some faith in those managing the process. I do agree that timescales are tight but the fact we have planning in, Rugby Club requirements being discussed with the council shows that a large amount of work has been done.

Hopefully get a lot more info on Thu 5th and we can all get behind the move home.

That's great news, cuts nearly 2-3 months out of the process then, more confident if funds can be gleamed that we could be sunning ourselves at BM next season.

Was not trying to be negative, just realistic of time scales involved in construction

[Mr_Tibbs]

Wonder how the council meeting went / is going?

I notice the B2D total has ticked up a little - the total raised is over the £22k mark now, presumably as a result of the comedy night on Saturday though I know there are some regular monthly payments going in there too ('cos mine is one of them).

We have paid some money out of that total, so the actual amount in the bank will be about £13k at the mo.

You can keep track on what we've raised versus what we've shelled out at the following link:

http://www.backtodarlo.co.uk/?x=cat:100

[Neil Johnson]

I suppose the Amateur refers to the playing staff at Darlington RFC. A manager and coach may be paid more than expenses. Bar staff etc may be hired in for some functions, where DFC could be sharing costs.

[charlie]

http://m.thenorthernecho.co.uk/news/118 ... oundshare/

[super_les_mcjannet]

The council have agreed to what was needed.

Planning permission needed next I guess and then the funds but the ball is rolling.

Thu 5th March meeting at BM should hopefully be very positive.

http://tinyurl.com/ma9xm6h

[Bogratsteve]

Apparently Northumbria Water have put an objection in..............

[shawry]

Apparently Northumbria Water have put an objection in..............

Details?

[Bogratsteve]

http://msp.darlington.gov.uk/Planning/l ... ments.page

search Blackwell and there is a letter from NW in regards to 39 inch raw water main crossing the site that cannot be built on and needs 24hr access

[Bogratsteve]

https://www.dropbox.com/s/cf4uwx57y89mkxz/DBC.pdf?dl=0

You might be able to see it here

[shawry]

Cheaper to build on another pitch then probably.

[Magical Quakers]

Sounds like we are pretty screwed there then.....

[divas]

Sounds as though our plans are down the drain....

[dfc4me]

Cannot believe we didn't know about this pipe and checked it out. Surely it was on the original plans for B.M.

[Bogratsteve]

Cannot believe we didn't know about this pipe and checked it out. Surely it was on the original plans for B.M.

Can't believe the rugby club were not aware when building the pitches and maybe might have mentioned it when they saw our plans to put terracing in etc unless the powers at be have moved on etc

[shawry]

Cannot believe we didn't know about this pipe and checked it out. Surely it was on the original plans for B.M.

No, because when BM built there would have been no reason to object, and so the issue wont have come to light.

[divas]

Before undertaking any architectural planning, surely you have a search/survey done of the site....