Trust running city venues is ‘haemorrhaging cash’

THE TRUST which runs Sheffield’s major sporting and leisure facilities will see its “bank balance drained” without help from the council.

Sheffield City Trust, and its management arm Sheffield International Venues, has been “haemorrhaging cash” in the words of council officers. The trust runs the major sporting facilities Ponds Forge, Hillsborough Leisure Centre and the FlyDSA Arena and a number of other venues via Sheffield International Venues.

The council has had to bail out the trust with £6m – more than half of which is for significant maintenance and health and safety work to keep facilities open for the public.

A report to the council’s cabinet said: “In 2018 a six-year business plan was received from the Trust that proposed to move to a zero subsidy by 2020. This relied heavily on plans to grow their income base over the first two years.

“This proposal was agreed, but is not being achieved by the trust, with deficits over the last few years averaging £2.8m and it is expected to continue at this level.

“Competition from lowcost operators and the Leeds Arena entering the market has also impacted the trust’s financial position and contributed to this budget deficit.”

The council approved and paid over £1m earlier this year as a loan to the trust. Officers are now recommending the £2.8m subsidy plus a £3.5m grant for maintenance and health and safety work. The report adds: “Officers are working with the trust on their financial position.”