Agenda item

The Cabinet considered a joint report of the Corporate Director, Regeneration and Local Services and the Corporate Director, Resources which informed of developments in relation to securing the future of first class county cricket in the county. The report also provided an update on the finances of Durham County Cricket Club (DCCC), a change in their articles of association and subsequent restructure of the Club in response to a financial rescue package agreed with the England and Wales Cricket Board (ECB).   The report also sought agreement to the Council converting its outstanding loan balance into equity in the form of redeemable preference shares in the new Community Interest Company (CIC) that will run the Club going forward as part of the rescue package to secure the future of DCCC (for copy see file of minutes).

The Leader advised that he had offered the opportunity for group leaders or their representatives to attend the meeting to submit questions to cabinet on the report. Councillor N Foster responded to the questions raised by both Councillor Holland on behalf of the Liberal Democrat Group, and Councillor John Shuttleworth of the Durham County Council Independent Group. Councillor Holland asked about the different business models, assurances on the financial position going forward, and advised that he hoped Cabinet would give support to preserve the cricket club as an international venue. Councillor Shuttleworth advised that he could not support this during the current financial climate when the council was reducing it services which included closing care homes and leisure centres.

Cabinet members spoke at length about the issues facing the club, the history behind its set up which involved both the former county council and Chester-le-Street district council, and the economic boost and profile that international cricket brings to county durham and the north east as a whole. It was emphasised that the county council had not been asked for any additional finance, and that the support requested was to change its outstanding loan balance into preference shares. Members noted that the only way to possibly recoup some or all of the investment already made by the council would be to convert to shares, as by pulling support now from the club the finance would be lost.  Cabinet members welcomed the change in the governance arrangements of the club, commented that there was too much to lose for county durham if they no longer supported the club as by continuing to have international cricket played in the county was so important for county durham and its economy.

Resolved:

That the recommendations in the report be approved.