Saracens loan temporarily frozen by Barnet Council
Wednesday 19 February 2020 11:42, UK
Saracens' loan to redevelop the West Stand at Allianz Park has been temporarily frozen by Barnet Council.
The English and European champions were punished for repeated breaches of the salary cap in November and handed a 35-point deduction as well as a £5.36m fine.
In January they were deducted a further 70 points with their relegation to the Championship confirmed by Premiership Rugby too after they were found to have breached the salary cap this season.
Following this news, Barnet Council, which has a £22.9m loan agreement with Saracens Copthall LLP (SCLPP) for the purpose of constructing a replacement West Stand at Allianz Park, said it would take stock of their plans until the end of February.
A report from Barnet Council read: "On January 17, 2020, in response to media speculation about further action to be taken by PRL against Saracens, council officers placed a temporary stop on loan drawdowns.
"It has subsequently been confirmed by PRL on 18 January 2020 that the club is to be relegated automatically at the end of the 19/20 season.
"In light of recent events, the club and SCLLP are taking stock of their plans for the West Stand. This is expected to take until the end of February 2020.
"No further drawdowns will be approved until a way forward has been agreed between the council, SCLLP and the club. Interest will continue to accrue on the £3.2m already drawn down.
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"Should SCLLP wish to pursue the development of the West Stand, the council will require a robust revised business plan, subject to independent due diligence, before any further loan drawdowns are made."
The report also included a standard section titled 'alternative options considered and not recommended' which revealed the agreement between Barnet Council and SCLLP could be terminated.
However, it stated doing so would put "the council in conflict with the club, which would make it harder to recover the £3.2million already drawn down."
Saracens have been approached for comment.
