STATEMENT BY BOURNEMOUTH RUGBY ON PROPOSED SALE OF CHAPEL GATE TO BOURNEMOUTH UNIVERSITY
Bournemouth Rugby has seen the article in today's Daily Echo. We feel that some of the statements made could be misconstrued. We therefore have the following comments based on the points raised in the article.
BDRC representation on the subsidiary board
We know that BDRC need to remain open for residual responsibility however based upon their performance since 2014 can the responsibility not be handed over to another charity?
Two representatives on the subsidiary is not a quorum
It appears to be a non-democratic appointment
Neither we nor our National Governing Body (NGB) see the charity, with non democratically elected representatives with no quorum, acting as security of tenure for the Bournemouth Rugby hence why the RFU see us 'at risk'.
Lease length
Not applicable due to the reasons outlined above. Therefore if they seek grants and loans from NGB's then we have been advised they will not qualify.
SLA Charges
Only a one year guarantee on no increase (which might appear sensible) but;
'It has been agreed that there will be no increase in the SLA paid by all sections in the first year. Any future increases in contributions by sections would be explained by reference to the investments being made, for example, in the clubhouse and playing surfaces, and better attribution of cost to use through improved systems and utility monitoring.'
and
'It must be noted that along with the large capital investment with the purchase,'
The investments being made are part of the purchase? What is the purchase price? There will be no residual funds!
Revenue Gap
A significant revenue gap that doesn't exist now but will post purchase?
'BU confirm they will cover the gap that is not attributable to use of Chapel Gate by sections and third parties. It will be for the subsidiary company to make the books balance for that other use, but as noted, in the first year, we have agreed with BU there will be no change to the SLA payments.'
Therefore, who will cover the gap that is attributed to the sections after Year 1?
Uni balancing the books of a self imposed accounting deficit and reference to SLA's not being increased in year one is concerning.
Operational Group
What is the groups authority and how will it work?
Sponsorship Activity
'On site sponsorship will be the exclusive right of the subsidiary company, as the leaseholder.'
Bournemouth Rugby is a non-politicised community based club and this community spirit, allied to the incredible support from our local business community has seen rapid growth in all aspects of the club over the past three years or so. Our revenue streams are so inter-woven with our activity at Chapel Gate that any restrictions will have a significant financial impact.
In addition Bournemouth Rugby, as a not-for-profit organisation, need to remain agile; and any bureaucratic processes will potentially leave us hamstrung with regard to cashflow or to launching community programmes at short notice.
Bournemouth Rugby and the other sections currently active at Chapel Gate have been told on numerous occasions that we will not be disadvantaged as a result of this sale. We have also been informed by the proposed purchaser that they will not negotiate with us on any of the relevant issues which we have raised until the purchase is complete when of course it will be too late to negotiate on any level playing field. We need both the seller and the purchaser to be open and transparent about their short, medium and long term plans for Chapel Gate so that we may plan for the future.
Previous statement
Bournemouth Rugby are an ethical community sports club and as such feel compelled to respond to the latest Bournemouth and District Recreational Charity statement regarding the proposed purchase by Bournemouth University.
Bournemouth Rugby has a responsibility to members, sponsors and the wider community and urge those to support us in NOT supporting this sale for the following reasons;
* No security of tenure for the sections beyond the first year
* Significant increases in financial commitment beyond what’s fair
* Restrictions on sponsorship arrangements
* Potential new owners having a significantly different agenda to that of the facility and clubs on site
Bournemouth Rugby is thriving and celebrated our 125 year anniversary last year. We call upon the National sporting bodies, sports, business and rugby communities, as well as local stakeholders, our amazing sponsors and loyal membership to support our absolute unified opposition of this sale.
When much more community focussed bids were tabled, we were told that we, the sections wouldn’t be disadvantaged, clearly this is palpably not the case. Finally the RFU recognise we are now a club ‘at risk’ a situation brought about by the lack of security of tenure.
As you are aware, Bournemouth District Recreational Charity (BDRC) are in exclusive discussions with Bournemouth University with regards to the potential purchase of Bournemouth Sports Club. It is important to Bournemouth Rugby that we keep all our members and partners updated of the current situation, and therefore would like to invite you along to the club on Tuesday 19th February at 6:30pm to allow our Executive Team to brief you on where we are and how we see the future panning out.
As a member/partner of Bournemouth Rugby, we very much encourage and appreciate your attendance at the meeting and support in this transition.
Please let Wendy King Operations@bournemouth-rugby.co.uk know whether you will be able to attend.
BDRC Statement 
Download
Echo Article
Thank you in advance
Bournemouth Rugby
