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PLANNING FUNDING FACILITIES


Cuts in local authority expenditure, judicious bank lending and cautious corporate funding are hampering the construction of new sports facilities. Mark Walker of Oaks Consultancy advises sports providers to dedicate more time and research to the planning, conception and ongoing potential of their new builds


T


here has always been an aspira- tion among sports providers to build iconic facilities that help to


define them and their sport. In times of economic success, the ability to borrow commercial money against these projects – given their high profile nature – has been the avenue of choice. Not much thought was needed regarding the outputs of these facilities – given their ability to drive commercial revenues in a willing market and gate receipts against the main attraction. We now operate in a very different


world where access to finance is proving increasingly hard to source through the


banking sector. Swingeing cuts in local authority (LA) budgets and reluctance within the corporate world to invest against uncertain returns means organisations have to think more about the nature of their builds and the messages they deliver. In order to find a way through the


maze and deliver a facility that can still please the fans and make a statement yet satisfy its commercial backers and give back to the community, we must look at each segment of the process from planning and design conception through funding to ongoing revenues once built.


Planning Approaching a local authority has traditionally involved conversations surrounding the impact on the local area, transport solutions, green belt issues and community needs. While these issues remain, now there are new considerations – some of which present opportunities. Local authorities are having to make


hard choices about the leisure services they provide and indeed many have had to close provision where the business case does not stack up yet, the local need


A new facility creates jobs and attracts more people to the area


44 SPORTS MANAGEMENT HANDBOOK 2012


remains. This presents an opportunity that may well win the day where planning is in the balance. It could be that the facil- ity build forms part of a wider joined-up plan identified through a commissioned facility strategy, perhaps with the developer having a level of engagement, i.e. as part of a leisure trust board. There is and will continue to be a need


for LAs to outsource their leisure stock to third parties as part of a cost-saving ex- ercise. Usually these relationships involve the preferred contractor contributing towards the overall investment. This can ease the planning process and investment concerns. However, this system must be well timed to coincide with the outsourc- ing process, so some investigation into the status of the LA could be beneficial. Sport England and, to an extent, some


of the larger sports governing bodies have been working hard to develop planning tools in the field to guide and inform LAs and help organisations to refine their plans. They have produced accessible resources which need to be fully incorporated into the planning phase for all new proposals. Consideration should also be given


to wider agendas outside sport, which may be socially driven like health, social inequality and deprivation, education and employment. Sports brands tend to carry


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