Peterborough City Council renews battle to end £220,000 payment dispute with owners of Posh stadium
Council struggles to balance budget
Peterborough City Council chiefs have vowed to continue pursuing the owners of the Posh stadium for a £220,000 payment which the local authority says it is owed.
The council says the cash is one of a number of yearly payments that were part of the deal agreed in 2021 by London Road Peterborough Properties (LRPPL) to purchase the London Road-based stadium.
The council says the outstanding payment was due last March and has also warned that it will also soon begin to press for the 2025 payment, which is due this March.
Under the terms of the stadium sale, LRPPL undertook to pay the council a lump sum of £4.1 million and agreed to pay £233,000 a year up to and including March 2026. So far for 2023/24 only some £32,000 had been paid meaning the amount now due is about £221,000.
Councillor Mohammed Jamil, Cabinet Member for Finance and Corporate Governance, said: “No payments have yet been received from the football club.
"We continue to press for payment and will do so for the 2025 amount as well when this is due in March.
He added: “We will continue to pursue the club until this debt, which is ultimately taxpayers' money, is paid."
Cllr Jamil said: “In 2021 the council agreed to support the club to acquire the stadium and sold the land and buildings at London Road, including the Weston Homes Stadium and the Allia Business Centre, to London Road Peterborough Properties Ltd (LRPPL).
“Whilst the council has been happy to support the club in the past, it's not right that taxpayers are picking up the bill and legal action will be taken if necessary.”
Action to secure the repayment comes as the council battles to set a balanced budget in the face of a £23 million spending gap with the prospect of a hefty rise in Council Tax from April.
Posh owner Darragh MacAnthony has said: “I don’t comment on ongoing contract disputes but remain committed to reaching an agreement with all parties re the stadium and the stadium company. It will all get sorted.
“This has nothing to do with the football club as it has a long term lease which is always up to date per its lease.”