Northampton Town stand loan: £500k deal 'close'

The new stand at Sixfields remains unfinished after more than six years, although some seats were installed in 2016

A £500,000 deal to help complete a football stand at the centre of a long-running financial debacle has been proposed, the BBC has learned.

Northampton Town FC was originally loaned £10m from Northampton Borough Council to refurbish its East Stand - before work stalled in 2014.

The whereabouts of the money has since been subject to a police investigation.

A council spokesman said the authority and the club are in discussion "on a range of matters".

The club would be given an option to buy council-owned land next to Sixfields stadium, on condition the grandstand was finished.

The BBC understands this also includes a deadline of 31 July to sign the relevant paperwork.

The deal would would see the council sharing the proceeds of any subsequent development with the club.

A £3m cap on the cost of completing the stand was also likely to be part of the deal.

Northampton Town FC was loaned £10m to refurbish its East stand and work started in 2014

Northampton Town was originally loaned more than £10m to refurbish the stand and redevelop the land, but the contractors - Buckingham Group - left the site in 2014 because they were not paid.

Work resumed the following year but when payments still were not made the contractors downed tools again, putting the development company responsible for the project - 1st Land Ltd - into administration.

A spokesman for the club, which has since got new owners, told the BBC: "The overriding principle, as it always has been, is the development of the East Stand and that is an agreed point with Northampton Borough Council.

"In addition, NBC will need to demonstrate best value for any disposal of the freehold land, which is also accepted by the Football Club."

He said the club "does feel it has made progress" in discussions.

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The "missing millions" have been subject to a four-and-a-half year police investigation which has cost the council £1m in legal fees and led to multiple arrests and files prepared on 30 suspects.

The BBC understands the proposal is to split the proceeds of the land development equally between the council and the football club.

A council spokesman confirmed discussions were taking place and said it had been "no secret" the football club was keen to develop the land, and had "put forward ideas for a number of possible development schemes".

He added: "Should a development deal progress, then the East Stand of the stadium absolutely must be built before any further development takes place, and any deal must deliver best value for the tax payer."