Council in legal action to recover funds from local football club

Shropshire Council has taken legal action to try to recover £70,000 from a local football club.

It awarded £80,000 to the New Saints Football Club from its £3.5m Market Town Revitalisation Programme, which is intended to stimulate economic growth in the county’s towns.

The club used the money to install a new stand with 500 seats to allow it to attract additional events, a council statement said.

According to Shropshire, New Saints was required to repay the grant at £16,000 a year over five years, which would then be passed to various community bodies in the Oswestry area.

Shropshire has said that only £10,000 was repaid, but the club has disputed whether it is liable to repay the grant.

Claire Porter, head of legal and democratic services at Shropshire, said: “We have commenced court proceedings, and we are therefore unable to make any further comment during the course of the litigation.” 

An August statement from chief executive Clive Wright about the issue said police had found no evidence of criminal activity and Shropshire’s internal audit team had found no impropriety.

Mr Wright added: “There is a call from certain political parties, supported by some elected members, for an inquiry into the [New Saints] issues.

“However, it is the view of council senior officers that there is nothing to be gained from this.”

He added that Shropshire “believes that £70,000 should be repaid within the terms of the grant agreement and we understand that [New Saints] disagree and contest this”.

New Saints plays in the Welsh premier league and was formed by a merger of clubs in Oswestry and Llansantffraid.

The club did not supply a comment on the matter.

Mark Smulian