£1.5m final bill for Port Vale rescue as new owners pay Stoke-on-Trent City Council £200k
PORT Vale's new owners will pay £200,000 in January to clear the club's debt with the city council.
Council leaders confirmed yesterday they expect total losses of £1.5 million from their involvement in saving the club.
The city council, which was Vale's biggest creditor at the time of the crisis, placed the club into administration in March to help secure its future in the wake of a winding up order for unpaid taxes.
It was owed £1.859 million from a £2.25 million loan deal signed in 2006.
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Council leaders say the cost of funding running costs and formal administration was £440,000, which has now been met by new owners Paul Wildes and Norman Smurthwaite.
The authority will receive a total of £360,000 toward its original loan.
One remaining payment of £200,000 is due in January, leaving a total net loss of about £1.5 million. The figures are in line with the authority's previous estimates.
Some residents' groups criticised the council's financial support for the club as its own services faced multi-million pound spending cuts.
But fans say the help proved invaluable and will have wider community benefits.
Council leader Mohammed Pervez said: "We want to see Port Vale succeed. A successful football club brings visitors to the city and Burslem, increasing footfall that supports local businesses and boosts the economy.
"As council leader I took the decision to support Port Vale as much as we could through some of the darkest days in the club's history and at a time when the council was facing unprecedented financial pressures.
"We have been very clear of the financial implications of this decision from the start and the decision was supported by the full council.
"It is important to remember that as well as the £390,000 the council received in payments on its loan to Port Vale in 2006, the club's then-owners also paid £610,000 in interest payments; this is money that has helped to fund the public purse."
Pete Williams, chairman of the Port Vale Supporters' Club, said: "Port Vale supporters will be forever thankful to the city council for what they've done in helping to save the club.
"I feel they've recognised that if the club disappeared we would also be losing people's jobs and an important part of Burslem."
He added: "It would have been a tremendous loss. The importance of the club surviving is not something you can put a price on."
Comments
by johnwhite18
Saturday, December 22 2012, 3:51AM
“Now your time has come to seat them seats at the vale and show your support to the club and Mr Wilder can't see any local book markers giving you good odds you do it”
by Glennard
Saturday, December 22 2012, 1:13AM
“Well done Redpitlad, an entire sentence with no spelling errors. I note you have even used a two syllable word. Make sure your helpers know about this, they might let you start using a pen. I do think "mummy" deserves an upper case M mind.”
by Redpitlad
Friday, December 21 2012, 7:12PM
“Glennard.
mummy calling........... now run along.”
by hasod
Friday, December 21 2012, 12:57PM
“Why should I pay my council tax for some idiots to waste it on their living above their means ..Just think the of the worth while industry that has gone . Now the council are subsidising a load of overpaid none-working weirdos to kick a ball around for 90 minutes .”
by Tunstall2011
Friday, December 21 2012, 12:42PM
“I'm a Vale supporter and am ecstatic that the club now looks secure.
But no one can say they are happy that £1.5 million of taxpayers money has been lost through the council loan.
It's not the fault of the present council how this was handled, it's down to Mick Salih and his crony Kent Baddeley who were in charge in 2005-2006.”
by PFTalke
Thursday, December 20 2012, 11:45PM
“It must be remembered that a past City Council to away an element of trading (The Market) which had played a significant part in making Port Vale number one in Stoke-on-Trent at that time. Whilst Vale progresssed on the field and in Stadium development. Stoke City could not find funds to improve the Victoria Ground or sign quality players.
I cannot remember Stoke City ever having its income cut by the City Council.
The City Council should have let Stoke City go bump if thats what Stoke supports wish on the Vale.”
by Glennard
Thursday, December 20 2012, 10:02PM
“Dear Redpitlad
You really should be more careful - I think you might have got the last letter wrong in 'premier ship'.”
by spudder56
Thursday, December 20 2012, 11:38AM
“I wish the two gentlemen who have taken over the best of luck but the only way it can work is if more people come through the turnstiles simple as that because Vale are now in the last chance saloon People have either got to get behind the club or it will go under and it gives me no pleasure to say that whatsoever but I am just being realistic NO BUSINESS WHETHER IT BE A FOOTBALL CLUB A MULTI NATIONAL COMPANY OR A SWEET SHOP can spend more than is coming in and hope to stay in business FACT so come on Vale Fans Get down there and support your club before its too late”
by Redpitlad
Thursday, December 20 2012, 11:20AM
“Red arrows lol
its a pity the *FAIL* couldn't score goals as quick.....********s!”
by Redpitlad
Wednesday, December 19 2012, 8:42PM
“Glennard...
No matter how you spell it
it all comes across as sour grapes......because one is a premier ship club!!!
the other is a 4th rate club who have defaulted on £1.5 million pounds of council tax payers money.”