Council in legal action to get football club to repay £10m+ loan

Northampton Borough Council has issued legal notices to Northampton Town Football Club requiring repayment of £10.25m it is owed.

A spokesman for the local authority said: "The notices give the club three weeks to repay the loan in full. If the sum is not repaid, then the council will begin legal proceedings to recover the debt.

“The chairman has repeatedly informed us that the council will be repaid in full when the club is sold but the sale does not seem to be proceeding at this point.”

The spokesman said the last two repayments had been missed and the club had not given the council confidence in its ability to pay these and later repayments.

"The council is also aware that there is a petition to wind up County Developments Northampton Limited, the company working on the development around the club, in the High Court,” he said.

"This step was not taken lightly, but is the proper process to protect the public purse and collect the debt in these circumstances.

"We continue to support the club and remain open to discussion on ways to deal with the debt owing to the council."

According to a report on the BBC, David Cardoza, chairman of the League Two club, said he intended to repay the debt but takeover talks were taking longer than hoped.

The loan was made to help the club with the redevelopment of the Sixfields stadium. However, the intended facilities including a new East Stand have not been completed.