Letter, 14 September 2000, from Sport
England to the Football Association
ENGLISH NATIONAL STADIUM
Following our meeting yesterday afternoon at
DCMS, and recent correspondence between ourselves and WNSL/FA,
I am writing to describe the process agreed in respect of the
proposal to removal of athletics from the above project.
We agreed that the process would be as follows:
In relation to Lottery funded projects,
it is the responsibility of the applicant to apply for any change
to the purpose of a project. Therefore, we understand that the
applicants (WNSL and the FA) wish to re-submit to Sport England
on the following basis:
The removal of athletics will
A payment of £20 million
will be proposed, to be paid by the FA/WNSL to Sport England over
a five-year period commencing December 2000. Payments will be
as follows: £3 million in each of December 2000, 2001, and
2002; £5 million in December 2003; and £6 million in
A progressive reduction in grant
under the Lottery Funding Agreement of 12 January 1999, from £120
million to £100 million, will be requested.
Upon receipt of the application,
Sport England will consult formally with the DCMS, UK Athletics,
the BOA, and any other appropriate party, to seek their views
on the proposals.
The application, together with formal
responses to the consultation exercise, will be presented to the
Council of Sport England for formal decision. It should be noted
confirmation of the acceptability of these proposals is at the
discretion of the Council.
Subject to written confirmation that
these proposals are acceptable, as regards the athletics issue,
we are happy that the syndication process can commence. Final
details, including the mechanics involved, will then be discussed
and agreed formally prior to entering into the Co-Financing and
Priorities Agreement at financial close.
It is acknowledged that these proposals do not
fetter the ability of the FA and/or WNSL to apply for further
changes to the LFA after the Co-Financing and Priorities Agreement
is signed, although I hope we clearly stated the Council's current
position on such matters as any relaxation of commercial restraints.
At the meeting, you confirmed that you were
representing both the FA and WNSL. However, on our return to the
office, we received a fax from Ken Bates which appears to contradict
this. I would be grateful, therefore, if you could confirm in
writing by return the following:
The formal acceptance of the proposals
described in this letter by the FA and WNSL;
The FA and/or WNSL will not proceed
with the judicial review application referred to in the letter
from Allen and Overy to Lovells dated 12 September 2000.