Sheffield's next sports and leisure operator must 'bring millions AND maintain services'

Chair of Sheffield City Trust, David Grey, believes the current board, management and staff have done a ‘great’ job in difficult circumstances - protecting services despite deep funding cuts and Covid shutdowns.

But the organisation is hobbled by being legally unable to borrow money to invest.

So when a new organisation takes over in 2024 it must have the expertise to transform the business – and deep pockets.

WHY IS THERE A BIG SHAKE UP ON THE HORIZON?

He spoke out as Sheffield City Council draws up a new contract that will dictate how it is run over the next 30 years. It includes an ambition to invest £100m.

Sheffield City Trust runs 13 fitness and leisure venues, including Ponds Forge and the English Institute of Sport, five golf clubs and two entertainment sites: the City Hall and the Arena.

For the last three decades it has had funding from the council but is run at arm’s length.

Mr Grey said due to austerity investment fell from £60m in the decade to 2012, to £9.5m in the decade to 2022.

Despite this, in the same period, income from ticket sales and other activities rose from £20m to £30m.

And the annual subsidy required dropped from £6m to just £873,000 in the year before the pandemic.

Then, over a year of Covid lockdowns, the Trust only used £8m of £16.5m set aside for the crisis, Mr Grey added.

WHAT DO CUSTOMERS THINK?

Meanwhile, customer surveys and ‘benchmarking’ against other cities showed Sheffield City Trust was well run.

The challenge for the new operator would be to maintain this performance while making a return, he added.

He said: “To drive it on, the missing component is finance. I have a lot of sympathy for Sheffield City Council, during austerity they had to choose between care homes, bins and gyms. There are huge demands on its money and SCT needs to look elsewhere.

“You can make a profit out of this business - just run it like a budget gym only for those who can afford it and shut down those things that cost you money.”

The trust is run by a nine-strong board of volunteer locals with a range of expertise. It has ruled itself out of the race to run the organisation after 2024.

WHO COULD RUN THE TRUST IN FUTURE?

One possibility could see a much larger organisation, running scores of venues nationally, which could make savings through economies of scale.

It could be a private company like outsourcers Capita, Veolia and Amey, although it is understood councillors would prefer a not-for-profit organisation. And it is unlikely to be based in Sheffield.

SCT chief executive Andrew Snelling said they were proud of its ‘social benefit’ such as exercise programmes for people with complex medical conditions and care homes residents, and teaching kids to swim. The gyms are award winning and venues offer a range of concessions on price, he added.

it is also ‘uniquely Sheffield’ in the way elite athletes share facilities with the public such as Jess Ennis at the English Institute of Sport and diving at Ponds Forge.

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The Arena, which hosts bands and ice hockey team Sheffield Steelers, and Hillsborough Sports Centre make a profit, most of the others break even and only Ponds Forge and the City Hall require ‘cross subsidy’ from the others to cover losses, he added.

The venues also provide a wider economic boost for the city by attracting visitors.

Last month, Mr Snelling said the trust was ‘booming’ post Covid. The 1,100-strong organisation currently has 48 vacancies.

It also asked the city council for £7m to help it keep going until it hands back facilities in 2024.

WHAT IS THE COUNCIL SAYING?

At the time, Coun Cate McDonald, executive member for finance and resources, confirmed the trust had relied on financial support from the council for many years.

She added: “The council agreed a 30-year leisure and entertainment strategy in November last year, with over £100million of investment committed to meet our priorities of inclusive, top quality leisure provision.

“It’s an exciting time for the city and the funding that we will provide to SCT now will put us in the best possible position to deliver our future plans.”

WHY IS MR GREY CROSS?

Mr Grey has been stung by criticism, primarily from Lib Dem leader Shaffaq Mohammed, who has described the cash as ‘bailouts’. Mr Grey insists it is ‘core funding’.

He added: “If there was a magic bullet we would have fired it a long time ago. The board has spent a lot of time in difficult circumstances keeping all this together. The Lib Dem attacks are iniquitous, unfair and ill-informed.

“We have 1,000 people, all of whom are proud to work here. Have a go at me - I’m a big boy - but I object to someone trying to improve their election prospects by saying they are all doing a bad job.”

He added: “I rate myself as 9.5 out of 10 given the constraints, this is a great organisation. We want the best outcome for the city and first class facilities into the future that are accessible to everyone.”

Coun Mohammed said his job was to represent the interests of the people of Sheffield.

He added: “Sheffield City Trust has had a lot of money. If you don’t like being challenged, maybe don’t ask for it.

“If the board is that fantastic, lets see them bid for the new contract.”

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