Sale of Halifax’s Shay Stadium to Huddersfield Giants' owner approved

Halifax’s major sports ground The Shay Stadium will be sold to Huddersfield Giants’ owner Ken Davy providing conditions including a covenant restricting it for sports use are met.

Calderdale Council will sell the freehold of the stadium and surrounding land – it is home to the town’s professional clubs, football’s FC Halifax Town and Halifax Panthers rugby league club – for a “nominal sum”.

Having budgeted last year to divest itself of the costs of operating The Shay as one way in which it can balance its books, millions of pounds worth of improvements Mr Davy has committed to make will create a better future for both clubs as well, senior councillors agreed.

Mt Davy wants to develop the ground and place his rugby league Super League club Huddersfield Giants to play at The Shay while a new ground is built in Kirklees for the side.

The deal is not cut and dried – it is subject to confirmation from the relevant leagues that the three professional teams can play at the same stadium.

And the council’s Cabinet members agreed a restrictive covenant must be part of the sale agreement, which would mean the stadium could only be used for sports in the future.

This is to help allay fears as to what might happen to the Shay should it be put up for sale in the future.

And as The Shay is designated an asset of community value, process allows a six week “stand still” period to allow any community interest groups, to express interest in acquiring it.

Crucially, the Cabinet felt, both FC Halifax Town and Halifax Panthers had indicated support for Mr Davy’s proposals.

Councillors rejected an alternative proposal from a working group to set up a trust to take on the running of The Shay from the council as, despite its merits, they said it would effectively require the council to overturn last year’s budget decision and find alternative savings.

Cabinet member for Resources, Coun Silvia Dacre (Lab, Todmorden) said the trust option would in effect require an open-ended reliance on the council to fund outgoings.

They recognised the huge emotional attachment people had to The Shay.

She said when they had looked in detail, including all submissions made on the issue, councillors recognised they were not in an ideal position which would have meant they had sufficient funds to continue to maintain and invest – Mr Davy’d proposals include major ground, floodlighting and most importantly pitch and drainage improvements – in The Shay.

There were also options as to what would happen when Giants moved to their new ground, including an offer to sell it to the two clubs or Mr Davy continuing as a landlord.

“But the council cannot afford to take on open-ended liability for running costs and cannot afford to undertake any investments.

“The only option in our view at this point to preserve the position of the clubs at The Shay and to ensure investment for its transformation into a modern stadium is that recommended by officers.

“But Cabinet do want to add a recommendation that a restrictive covenant is included within the sale contract restricting the use of the The Shay to a sports stadium.

“As we might expect, both clubs were cautious and anxious but they have both now indicated they see Ken Davy’s proposals as providing the best option in the circumstances we find ourselves in,” she said.

Coun Dacre said Mr Davy had not “appeared from nowhere with obscure sources of funding as sometimes happens in these cases” and the council knew he has the means to achieve his proposals.

“His past actions demonstrate that he understands that professional sports clubs are extremely important to their community and he has a track record of buying and maintaining professional sports clubs when they would otherwise have gone out of existence,” she said.

The rugby league governing body had confirmed their agreement to this but the English Football League had not yet answered, said Coun Dacre.

Coun Sarah Courtney (Lab, Calder) said the council wanted to keep sports at The Shay: “There’s absolutely a commitment to keep that offer going and support that aspect of our community life – unfortunately we just don’t have the cash to support that directly ourselves.”

Coun Adam Wilkinson (Lab, Sowerby Bridge) said he understood concerns but while “clearly” Mr Davy and the Giants stood to benefit it was also clear proposals would be of “major benefit” to the two clubs, the fans, the town and the council by guaranteeing much-needed investment in the stadium required.

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