Relegation won’t halt Liberty lease takeover

THE deal for Swansea City to take over the lease of the Liberty Stadium is not dependent on the club remaining in the Premier League.

WalesOnline recently revealed the Swans are looking to become the leaseholders at the ground, taking over from the Swansea Stadium Management Company (SSMC), and open up the possibility of ground expansion, commercial control and the selling of naming rights.

Swansea City and the Ospreys are understood to have already reached agreement on a deal, with officers of Swansea City Council – the stadium owners – now authorised to begin discussions over terms.

The Swans currently find themselves in relegation danger, although their form has improved greatly since the appointment of Paul Clement as head coach in January.

But it is understood the deal does not rest on whether Swansea City are able to maintain their position among the top-flight and, if terms can be agreed, it would go ahead even if the club were to find itself in the Championship.

However, it is understood that the club would be looking to include a relegation clause in such a lengthy agreement to review the annual lease fee and take into account the potential knock-on effects of losing Premier League status in order to protect the club and not place it at any financial risk.

One of the reasons for the recent development over a lease deal is thought to be the impending increase in business rates.

SSMC are facing a £450,000 annual rise in business rates – around 300 per cent of the previous figure - with the football club’s recent successes and off-field improvements having seen the value of the Liberty and surrounding buildings rise.

Were Swansea City to take over the lease they would be responsible for those business rates.

Swansea City had previously looked into the possibility of purchasing the stadium – which opened in 2005 and cost £27million to build – outright but an agreement could not be reached leading to the club’s new American majority shareholders to seek an alternative.

Chris Pearlman was appointed as chief operating officer in October with the purpose of improving Swansea City’s commercial operation, and taking over the lease on the Liberty would be a considerable boost in that regard.