Cardiff City Football Club is to sell two sites of land around the stadium to raise money to pay off escalating debts.
The proposal has been approved by the city council as the club faces a winding up order for a £2.7million tax bill.
The deal will allow the club to sell land at Leckwith to major Bluebirds shareholder Paul Guy’s company Capital Retail Partnership for £1.8m.
It was agreed that the council would defer 40% of monies owed from the sale - £750,000 – until 2015 which must be paid with interest within five years.
It is troubling times for the Bluebirds, who are facing a winding up order in the High Court and also an estimated £7million debt for their new Leckwith stadium that opened in July 2009.
Steve Borley, a long-term director of the club, believes that the arrangement would help ease Cardiff City’s finances. He said: “It’s a fantastic decision and it will go a long way into breathing life into the situation.
“It is part of a series of measures they are taking to improve the club’s finances.”
Keith Morgan, of the Supporters Trust, said: “It’s all good news that the sale has gone through. They’ve got the season ticket money and this money and can use it to pay down debt.
“It is short-term good news but what still hasn’t been explained is how the club deals with the medium to long-term debt.”
Posted on 05/02/2010