DONCASTER’S Keepmoat Stadium has seen its value on Doncaster Council’s books slashed – by more than £29 million.
The authority has cut back its assessment of the site back to just £500,000 to reflect its actual value to the council in terms of future income – after being initially rated at £30m.
The move has been approved by external auditors.
The stadium is the home ground to Doncaster Rovers and Doncaster rugby league club.
Doncaster Council’s acting director of finance Steve Mawson said: “A verification exercise of all assets owned by the council is undertaken each year, in conjunction with a rolling five-year programme of revaluations.
“Following a change in accounting policy in 2009/10, the Keepmoat Stadium has been re-lassified as a non-operational council asset in order to reflect the stadium building being council-owned but its facilities being mainly used by Doncaster Rovers Football Club.
“The new valuation represents the future cash-flow from the lease agreement managed between the club and the Stadium Management Company.”
But the revalued figure of £500,000 is not an open market value and a different valuation would be needed if the council ever decided the asset was available for sale.
Meanwhile, councillors yesterday heard the stadium is likely to make a small profit this year, according to figures provided by the Stadium Management Company.
The council’s economy and enterprise overview and scrutiny management panel was shown a report revealing a profit of around £2,000 is expected this year.
Bosses have carried out work to increase income and cut costs throughout the last year, including reducing staffing costs.
At one stage, the stadium had been almost £2m in debt.
The committee is being asked to back an extension of a £1m overdraft guarantee to the facility.
The agreement has been in place for the last five years.
The report states that extending it again would provide stability and certainly for the venue.
The stadium has been successfully used for a number of high-profile concerts by acts ranging from Sir Elton John to the rapper Tinchy Stryder.