APPENDIX 20
Memorandum submitted by the Scottish Football
Association
The Scottish Football Association ("Association")
hereby advises, to its best knowledge and belief, the following:
PROJECT OUTLINE
— Queen's Park Football Club Limited
("QPFC") is the owner of The National Stadium, Hampden
Park. In the late 1970s and early 1980s the National Stadium was
becoming obsolete and quite obviously in need of redevelopment.
In the period from 1980 until the early 1990s the National Stadium
was modernised on a piece-meal basis. Following the Taylor Report
in the mid 1980s QPFC concluded that the National Stadium would
require more radical redevelopment in order to meet future regulatory
requirements and spectator expectations. Accordingly, in the early
1990s QPFC embarked upon an ambitious scheme to redevelop the
National Stadium. QPFC, as noted, owned the stadium and the principle
responsibility for financing and project managing the arrangement
was assumed by them;
— as QPFC's plans evolved, they decided
to establish The National Stadium PLC ("TNS") in order
to market a debenture scheme to provide an additional seam of
finance for the redevelopment of Hampden and also to comply with
the requirements of the Millennium Commission; and
— the Association has no knowledge
regarding the "way in which the project marks the year 2000
and the beginning of the third Millennium". Please revert
to QPFC.
THE ROLE
OF THE
MILLENNIUM COMMISSION
Please revert to QPFC regarding this element.
PROJECT BUDGET
(excluding most recent funding gap resulting
in QPFC's interim administration: please revert directly to QPFC
in this regard).
— Please revert to QPFC on this matter;
— it is the Association's understanding
that the amount of the grant originally awarded by the Millennium
Commission was £23 million. Please revert directly to QPFC
regarding any subsequent supplementary grants by the Commission;
— the recent estimate of the total
budget (as at Debenture Issue—November 1998) for the project
was £55.3 million. An outline on non-Millennium Commission
sources (and potential sources) of funding for the project was:
— The Football Trust—£7.0
million.
— The Glasgow Development Agency—£1.6
million.
— The Scottish Office—£2.0
million.
— Strathclyde European Partnership—£2.1
million.
— Strathclyde Regional Council—£0.3
million.
— City of Glasgow District Council—£0.7
million.
— Scottish Sports Council (Lottery
Sports Fund)—£3.75 million.
— France Lease—£2.5 million.
— Millennium Commission—£23
million.
— Proceeds of Debenture Issue (net
of expenses)—£7.56 million.
— Sponsorships by BT Scotland—£4.42
million.
— please revert to QPFC with regard
to any changes to the project budget over time.
PROJECT TIMETABLE
— Please revert to QPFC regarding the
forecast timetable for the project at the time of the grant award
by the Millennium Commission;
— the redevelopment of the National
Stadium at Hampden Park was completed as at May 1999;
— please revert to QPFC regarding any
changes in the project timetable over time.
LONG-TERM
VIABILITY
— As at 31st March 2000 the Association
become the tenant of the National Stadium at Hampden Park although
QPFC continues to enjoy the National Stadium's footballing facilities
on an agreed basis. The Association has assumed responsibility
for the management and control of the National Stadium. It has
become an employer of substantially all of the staff at the stadium
who had previously been employed by TNS; and the Association has
assumed the benefit and burden of the various commercial contracts
entered into by TNS in relation to the stadium (with a few exceptions).
The Association is confident that the National
Stadium at Hampden Park has a viable long term future. It is making
a significant investment to ensure that the National Stadium has
a fighting chance of occupying its place as an internationally
recognised multi-purpose stadium venue with top level ancillary
facilities.
The Association is now operating the stadium
through a wholly owned subsidiary known as Hampden Park Limited.
This will facilitate the creation of a discreet brand for marketing
and related purposes.
The Association has recently announced the appointment
of Mr David Kells, currently Commercial Director of Celtic plc,
as the Managing Director of Hampden Park Limited. Mr Kells is
highly experienced and well respected in footballing circles.
The Association is delighted to have been able to secure the services
of such a high calibre individual. Mr Kells will be charged with
the responsibility of developing and implementing a detailed business
plan for the stadium.
The Association has no comment to make on the
role of and funding by public agencies of the National Stadium,
Hampden Park. The Association's sole concern is to ensure that
a national asset which has a historical and emotional role in
Scottish sporting culture is managed efficiently both for the
Association and for the Scottish nation over the next 20 to 40
years.
The Association's relationship with the Millennium
Commission extends solely to the Association, in its capacity
as operator and manager of the National Stadium, becoming legally
responsible for complying with certain grant conditions of the
Millennium Commission.
June 2000
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