GEORGE DOBELL: The club has agreed a loan of up to £18m with the West Midlands Combined Authority (WMCA) to cover the bulk of the costs. However, it would appear the deal could raise the club's overall debt level to somewhere around £35m
Warwickshire have agreed a lending deal which will help them take the next step towards the redevelopment of their Edgbaston home.
Warwickshire have agreed a loan of up to £18m with the West Midlands Combined Authority (WMCA) to cover the bulk of the costs.
With it they aim to build a hotel in the area currently occupied by the Raglan and Family Stands as well as redeveloping the seating area. The proposed four-star hotel will include a rooftop terrace, pitch-view rooms with balconies and other rooms that can be converted into hospitality boxes with small external terraces to watch the match action.
The aim, subject to planning consent, is to begin work in September 2025 with a view to the hotel and new stands being being complete in time for the Men's Ashes Test at the ground in 2027.
There is not expected to be any appreciable change in the ground's overall capacity.
The aim is to have the hotel and stand ready for the 2027 Men's Ashes [Geoff Caddick/Getty Images]
Warwickshire are keen to emulate Lancashire's commercial success away from cricket [Michael Regan/Getty Images]
The repayment schedule and interest rate on the loan is currently unclear. It seems the funding has been agreed in principle without final details having been nailed down. But it would appear the deal could raise the club's overall debt level to somewhere around £35m.
Warwickshire had previously borrowed from the local council (Birmingham) to finance the redevelopment that included their new pavilion. While they are expected to announce they have paid off another chunk of that debt when their annual accounts are released in April, the last published figure was above £20m. With a further £18m added from WMCA and more required to complete the project, the overall figure is likely to remain high for years to come.
It's not hard to see why local authorities are keen to support the club, though. It is expected the new project will create more than 376 jobs during the construction period and another 100 post completion, adding to the 1,000 jobs the stadium already supports locally. Edgbaston Stadium currently contributes approximately £35 million to the local economy and projections from the new hotel development increase that to £40 million.
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For this reason, there had, in the past, been speculation that the local council could be involved in a naming rights deal for the ground. While the chances of that have receded - the local council is effectively bankrupt and is not thought likely to be involved in such a scheme - there are on-going plans to agree a naming rights deal at some stage.
A spokesperson for the West Midlands Combined Authority (WMCA) said: "The loan is approved in principle only and there is a period of due diligence required before the terms of the loan are fully concluded. As such we are not in a position to comment at this time."
Warwickshire retain aspirations to host major concerts and events, too. They are currently going through the process of gaining a license and hope, both with the hotel and in hosting concerts, to emulate the success Lancashire have had with their non-cricket business.
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