King's Lynn Town Football Club faces an uncertain future due to an outstanding loan received from Sport England during the COVID-19 pandemic. This debt is a major obstacle in the ongoing negotiations for a potential club rescue and restructuring between Turn Sports Investments and the Blue and Gold Supporters Trust.
North West Norfolk MP, James Wild, has expressed his concern and requested a meeting with the Secretary of State for Digital, Culture, Media & Sport to discuss the issue and explore potential assistance for the club. He highlighted the impact of loan repayments on the viability of non-league clubs.
The Secretary of State acknowledged the issue's broader impact on many clubs across the country and confirmed ongoing engagement with affected organizations to provide support.
The Department for Digital, Culture, Media & Sport (DCMS) provided £474 million to sports and culture organizations between 2020 and 2022 to help them weather the COVID-19 lockdowns. A significant portion of this remains unpaid, raising concerns about value for taxpayers' money.
The proposed new ownership structure aims for a more sustainable financial model for the club, moving forward.
North West Norfolk MP James Wild has expressed his concern about the future of King's Lynn Football Club over an outstanding Covid loan.
The National League North Linnets received a substantial amount from Sport England back in 2020.
The outstanding debt is proving a major stumbling block in a bid to save and restructure the club between Turn Sports Investments and the Blue and Gold Supporters Trust from current chairman Stephen Cleeve.
It is believed the potential new partnership are keen on running a more sustainable model at The Walks.
During the debate on the Football Governance Bill on Monday, Mr Wild said: "During Covid, non-league clubs took DCMS sport survival loans, but their repayment now threatens the viability of some.
"Will the Secretary of State assure fans that she will do all she can to assist them?
"As my local club, King’s Lynn Town, are in active discussions with Sport England about their loan, will she or the Sports Minister agree to meet me to discuss that?
Lisa Nandy, Secretary of State for the Department for Digital, Culture, Media & Sport, said: "I am grateful to the honourable gentleman for raising that issue, which affects many clubs around the country.
"The Department continues to engage regularly with fans and sporting governing bodies that are facing difficulties, not just in football, but across the board.
"We are working constructively to help support them, and I would be delighted to provide him with a further update on the individual case that he mentions."
Between 2020 and 2022, the DCMS gave £474m to bodies in the sport and culture sectors to help them to survive lockdown, £218m was to sporting bodies with £124m supporting Premiership rugby union clubs.
Recently, the cross-party PAC, which assesses value for taxpayers' money, says £400m is yet to be paid back, and less than half of borrowers had started repayments.
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