Hampden rakes in millions from low-rate boost

AN interest-rate windfall is allowing millions of pounds to be ring-fenced for re-investment into Hampden Park at a time when the ground’s future is in doubt.

The SFA’s 20-year lease, which guarantees its status as the National Stadium, is due to expire in 2020.

And with Hampden having drawn flak over a range of issues – including the distance of seats from the pitch and poor transport links – alternatives are to be considered.

The Scottish Rugby Union was invited by the SFA to submit a bid for Murrayfield to host games in future, and has done so.

With a capacity of 67,000, the Edinburgh ground has the capability to host 15, 000 more fans out at sell-out occasions, such as internationals and cup finals.

Although best known for rugby, Murrayfield has been the venue for high-profile football matches, such as Celtic’s Champions League qualifier with Legia Warsaw.

More recently, of course, this season Hearts have played their early home Premiership matches while work has gone on at Tynecastle.

A decision to move the Scotland side away from Hampden would be a blow for the ground’s owners, Queen’s Park.

They currently receive around £300,000 a year in rent from the SFA via Hampden Park Limited – a wholly-owned subsidiary of the SFA – money recouped through sub-lets to the Scottish Professional Football League, the Scottish Football Museum, the Hampden Sports Injury Clinic and others.

Ironically, it is the amateur club’s historic financial problems which have led to unexpected influx of money for the ground’s future.

Their £5.75m debt prompted the SFA to sign up to the 20-year annual lease back in 2000, at a cost of £800,000 per annum.

Under the terms of the deal struck then, an index-linked figure of £200,000 was to go to the Spiders, with the remainder to go directly to their debtors.

At the time, it was expected it would take to take 20 years to clear the arrears. However, low interest rates allowed those arrears to be paid off by August, 2014, six years ahead of schedule.

That hasn’t made a difference to the SFA, who have remained tied to their original commitment.

It does, however, mean the surplus – some £500,000 a year – has been ring-fenced for investment back into the stadium and will continue to do so until the lease expires in 2020.

By then, around £3m will have been available for the ground’s upkeep.

Queen’s Park’s General manager and Club Secretary Christine Wright said: “Our contract with the SFA is a confidential agreement and it would therefore be inappropriate to comment on it.”