Finance options for sports facilities

S&C Slatter work in exclusive partnership with Buckingam Leasing, a leading supplier of business and asset finance.

Buckingam Leasing have over 18 years’ experience in delivering flexible and competitive financial solutions, with proven expertise in the grounds care, sport and leisure sectors.

As well as providing finance from their own fund base, over the last twenty years have developed additional relationships with some of the largest lending institutions in the UK.

Together we can provide competitive funding solutions (subject to approval) for your new sports facility via three finance options:

• Operating Lease
• Hire Purchase Agreement
• Finance Lease

Funding for Academy and State Schools

Where capital expenditure or grant funding may not be an option, sports operating leases are becoming increasingly popular in the education sector.

Particularly popular for academy and state schools, sports operating leases allow you to spread the cost of investing in new sports facilities. Repayments can be made monthly, quarterly, annually or on a bespoke schedule over 1-7 years.

The lease enables you to construct a new sports facility, or resurface one, such as a synthetic pitch, in return for agreed regular payments, with no deposit required.

Benefits of a sports operating lease:

• Reduce upfront costs and free up funds for other projects.
• Fixed payments improve financial management and forecasting.
• Reduced tax payments and the option to reclaim VAT.
• Operating lease rentals are treated as an expense item.
• An operating lease is an additional line of finance (so may not affect existing bank arrangements)

Sports Operating Lease case study

We worked with the John Madejski Academy who utilised an operating lease to fund their new FIFA Quality 3G football pitch. Popular with the local community, the pitch pays for itself through revenue earned from pitch hire.

Funding options for VAT Registered organisations

While some universities, elite sports clubs and local authorities may be eligible for sports operating leases (see above) other funding options are recommended to these sectors.

For organisations who are VAT registered, Hire Purchase Agreements are often the best option for financing a new facility.

Available to a variety of sectors including sports, education and leisure, a Hire Purchase Agreement allows you to spread the cost of your new sports facility over time.

In return for an agreed deposit and regular* payments, your new sports pitch can be constructed through a hire purchase agreement before your monthly payments even begin.

*Monthly, quarterly, semi-annually, annually or bespoke repayment plans.

Benefits of a Hire Purchase Agreement

• Reduced upfront costs make construction more affordable
• Full ownership on final payment
• Fixed payments over 1-7 years improve financial management and forecasting
• Deferred payment options allow pitch construction to be completed before payments begin, allowing revenue generated from your new pitch to contribute to repayments
• Claim VAT back from the outset (if VAT registered)
• If paying annually, payment can be deferred for up to 12 months
• Claim tax relief via annual capital allowances

Funding options for Non-VAT Registered organisations

For schools, universities, sports clubs and other organisations who are Non-VAT registered, Finance Leases are the recommended option for financing a new facility, as it allows you to spread the cost of VAT over the financing term.

As with Hire Purchase Agreements, Finance Leases are available to a variety of sectors. For organisations in the education, sports or leisure sectors who are Non-VAT Registered, a finance lease allows you to spread the cost of your new sports facility (including VAT) over a period of 1-7 years.

The lease enables you to construct a new sports facility, or resurface one, such as a synthetic pitch, in return for agreed regular* payments, with no deposit required.

*Monthly, quarterly, semi-annually, annually or bespoke repayment plans.

Benefits of a Finance Lease

• No deposit required – free up funds for other projects
• Fixed payments over 1-7 years improve financial management and forecasting
• Finance lease payments are treated as an expense item
• Reduce taxable income with full asset value on balance sheet
• Full ownership at end of term
• VAT cost spread over agreement, payable on each repayment

Government grants for sport

Funding from the government and organisations like the national lottery are often delivered via sport governing bodies, like Sport England.

Sport England offer a number of funding options for community level and elite level facilities, which you may be eligible to apply for when funding a new sports project or refurbishment.

Local and regional councils will often also have grants available for sporting projects that can demonstrate specific benefit to the local community. These may be partial or full grants depending on the size and scope of the project, they also may require additional fundraising in support of the grant.

We encourage you to refer to your local council’s website to see what may be available in your area.

Developer funded relocation

Many sports facilities are located on high value land but realising the land’s value can be complex. Our in-house Design & Planning division are experienced in relocation projects and can advise you on the potential for developer funded relocation.

With a poor-performing natural turf pitch in need of repair, Ringmer AFC faced an uncertain future. Thanks to housing developer Bedford Park developments, the club were able to sell their land for housing development, with the developer covering the cost of both relocation and construction of a cutting-edge new 3G Pitch and clubhouse.