Issue - meetings

To consider an exempt report on a request for funding from Sports and Leisure Management to enable the re-opening of Spelthorne and Sunbury Leisure Centres.

Reason for Exemption

The report may be exempt from publication in accordance with Paragraph 3

of Part 1 of Schedule 12A to the Local Government Act 1972, as amended by the Local Government (Access to Information) Act 1985 and by the Local Government (Access to information) (Variation) Order 2006.

Paragraph 3: Information relating to the financial or business affairs of any particular person (including the authority holding that information).  

The public interest in being transparent in transactions is outweighed by the financial affairs of the leisure operator being disclosed in discussions; this being financial information which is not publically accessible. If the Council made this available to the public then it could impact the financial position of the operator as their competitors would have access to such information which in turn might affect the viability of the centres moving forward.

Paragraph 3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information). 

The Cabinet considered an exempt report on a request for funding to enable the re-opening of Spelthorne Leisure Centres.

The Cabinet noted that the Council’s two leisure centres in Sunbury-on-Thames and Staines-upon-Thames play a very important role in supporting the health and wellbeing of many of the borough’s residents.  Both centres were popular with users and catered for a wide range of needs.

Sports and Leisure Management Limited (SLM), one of the biggest leisure centre operators in the UK, had a contract with the Council to operate these two sites. The exempt report outlined some of the background leading up to a request from SLM for financial assistance from Spelthorne.

Following extensive discussions with SLM on the level of support needed to reopen the Council’s Leisure Centres from 25 July, and analysis of their forecast figures, Council officers had formulated all the options available in the report before Cabinet.

Alternative options considered and rejected by the Cabinet:

·         Provide no financial support to SLM and enforce the requirements of the contract

·         Agree to forgo the monthly Management Fee payable to the Council under the current contract for a specified period of time (for example 3, 4, 6 or 9 months)

·         Agree to provide additional funding to open just one leisure centre

·         Agree to provide additional funding to keep both leisure centres open

·         Agree to provide SLM with a loan to cover the costs of opening both LCs

·         Not to accept any of the above options and undertake further negotiations with SLM to seek an alternative agreement

Resolved to:

1.    note the contents of the report;

2.    approve the proposed financial support package with Sports and Leisure Management Ltd. as outlined in section 2.10 of the report, to enable the reopening of the Council’s Leisure Centres from 1 August 2020; and

3.    authorise the Joint Group Head for Community Wellbeing, and the Group Head of Corporate Governance to finalise any necessary documentation.

Reason for Decision

Sports and Leisure Management have indicated that without financial support from the Council they will not be able to reopen the leisure centres and that they may have to remain closed indefinitely due to the limitations placed on them by the Government’s guidance to prevent the spread of COVID-19.