Working party issues response after council officers support Ken Davy's proposals for The Shay

A council cabinet meeting on March 17 will see two options on the table for the future of the stadium.

They are a proposal from a working party of Halifax-based supporters that an independent, not-for-profit trust takes over ownership of the stadium, or a bid from Huddersfield Giants owner Ken Davy to buy the ground so the Giants can play there while a new stadium for his side was being built, before ownership of The Shay is offered back to FC Halifax Town and the Panthers.

Council officers are recommending the cabinet proceed with the proposals put forward by Ken Davy.

If Mr Davy’s proposals go ahead, a new hybrid pitch at the Shay would be constructed from summer 2025, to minimise the disruption to FC Halifax Town during the 2025/26 playing season and to prepare the ground for the relocation of the Huddersfield Giants in 2026.

"We appreciate the efforts undertaken in the preparation of the Shay Stadium Disposal report,” says the working party in a letter to cabinet members, seen by the Halifax Courier.

“However, upon close review, we have identified several areas where the analysis of the NFP plan (Option B, our proposal) appears incomplete or inaccurate, and where the risks associated with Mr Ken Davy’s plan (Option A, the proposal recommended by the report) are insufficiently addressed.

"Option B proposes a solution that, while reliant on a continuing public subsidy in the short term, ensures the Council retains ownership of the freehold.

"This approach safeguards the long-term strategic control of a valuable public asset.

"Although the subsidy requirement runs contrary to the Council’s stated desire to eliminate such commitments, it is important to note that the subsidy is relatively modest within the context of the Council’s overall budget, representing a manageable and time-limited investment to secure long-term public benefit and control.

"The cabinet has an opportunity to cement the legacy of all who came before them, who chose time and again to refuse opportunities to divest themselves of the estate, even in the face of considerable pressure and, often, with no good reason to do so other than the desire to protect the hopes and dreams of the supporters of the town’s professional sports clubs."

The working party go on to say: "Other than the state of the playing surface, the stadium currently meets the requirements of its tenant clubs. The Skircoat Road side of the stadium remains undeveloped, but the rest of the stadium has been rebuilt over the course of the previous 25 years.

"The stadium is more modern than many of its peers in both association football and rugby league. Any proposed upgrades and new features (as part of Mr Davy’s proposal) would serve only to place additional burden on the day-to-day maintenance budget and would mostly be for the benefit of the Huddersfield Giants.

The working party say “there is no evidence that suggests a demand for Super League exists in Calderdale, beyond what is already provided for by nearby clubs” and that “Option A has the potential to irreparably damage” FC Halifax Town, Halifax Panthers and Huddersfield Giants.

The recommendations made to Calderdale Council’s cabinet made reference to My Davy’s “lengthy track record of philanthropy and business success”, but the working party say this has “no relevance to the issue at hand” and go on to say: “It is known that under Option A, Mr Davy intends to provide no financial contribution to the provision of a new pitch, while the disposal report suggests he would be able to secure the estate for only a modest sum.

"Mr Davy has also previously stated that he will freeze the rental cost for the current tenant clubs for only one year, which allows us to infer that they should expect to pay an increased sum in future years.

“Mr Davy is also on record as stating that he will sell the stadium to the current tenant clubs once he no longer needs it, but that the sale price will reflect the investment he makes during the interim period. What of this suggests that his supposed philanthropic bent will benefit either tenant club or the wider Calderdale community?”

The working party also say it “stretches credibility to suggest that either tenant club would ever be able to purchase The Shay once Mr Davy has done with it, particularly given his stance, noted above, that the sale price would need to reflect his investment.

"In case anyone needs reminding, FC Halifax Town’s chairman David Bosomworth is on record as stating the club necessarily lives hand-to-mouth, while the Halifax Panthers are currently fending off a winding-up petition from HMRC having already been placed on a repayment plan for failing to meet their contractual obligations for their use of The Shay.

"The backstop of allowing the clubs to remain on a tenant basis does not offer any guarantees in terms of affordability or security of tenure, and thus there exists the very real possibility that Calderdale will have a stadium that is the envy of many other comparable towns, but left empty because the current clubs cannot afford to use it.”

The working party say they were unable to provide enough detail in their proposal due to council officers’ refusal to engage in a proper due diligence process, which put them at a distinct disadvantage compared to the tenant clubs and Mr Davy.

They also question why “the Huddersfield Giants are the only party not being expected to contribute, especially as they would be the primary beneficiary of the pitch upgrade” and cast doubt on whether any stipulation guaranteeing future use of the ground by the two Halifax clubs would remain in place permanently if the stadium was sold.

The working party say the recommendations have “clearly and deliberately failed to highlight the risks inherent with private for-profit ownership and has cast Mr Davy’s philanthropic nature as a defence against those risks, should they be brought up in cabinet.

“We respectfully request that a balanced reassessment of both options be undertaken, with full consideration of the points raised. Our only goal is to help secure the future of The Shay as a sporting venue, providing a cost-effective way of ensuring it remains an affordable option for the current tenant clubs, while also increasing community usage.

"We believe the Council and a NFP company could collaborate on a process that would ultimately allow the stadium to pay its own way, much as was achieved with the Piece Hall to great success.

"Another option worth considering, if Option A is chosen, is that the Council agrees to keep the money realised from the sale of the estate ring-fenced for its future re-purchase, and that Mr Davy agrees that, when the time comes, the re-sale price reflects the purchase price plus any fluctuation in the CPPI (commercial property price index).

"The interim period would see a collaborative effort between the Council, relevant stakeholders and independent experts, with the aim being to find a substantive, long-term solution for the stadium’s success under a NFP company.

"This would achieve the Council’s stated aim of taking the ongoing costs off the books, ensures immediate concerns about the pitch are solved in short order, while also giving the best chance of managing the stadium for the medium-to-long term under NFP management and Council ownership.

"This compromise would depend on whether Mr Davy was prepared to sell the Shay back for a nominal amount – similar to that of his purchase – or would he look to recoup the full cost of his investment, even though this would also have benefited the Huddersfield Giants?

"In closing, while we acknowledge the thoroughness of the report’s preparation, we believe the concerns outlined above warrant serious attention before a decision is made, and that while it appears to be a choice between two imperfect options, there are others worthy of consideration if only a collaborative, open-minded approach is encouraged.”

When asked for a response, Calderdale Council said: “Although major financial pressures mean that it’s no longer possible for the Council to continue the running of the Shay Stadium, we understand how important this facility is for people in the borough.

“We’re committed to securing a bright future for the stadium, with the many benefits that local sports teams bring to the borough. In discussing proposals for the Shay’s future, we want to ensure that we can provide a long-term solution that will inspire the proud clubs of FC Halifax Town and Halifax Panthers and support their on-field success.”

Ken Davy has been contacted for comment.