I just wonder, even in the revised deal that Newco would have had to do, this is the reason why below:
1. Venue Use Agreement
Parties: RFC and Glasgow City Council
Date: 8 June 2007 (signed by GCC on 11 June 2007)
Term: 8 June 2007 until terminated in accordance with the terms of the Agreement.
Amount: £150,000 event hire charge for each of 26 and 27 July 2014, £15,000 venue hire charge for each day from 22 - 25 July 2014 and 28 - 30 July 2014 inclusive (i.e. EXCLUDING 26 and 27 July) and a £21,000 administration charge for each of 26 and 27 July 2014.
Service: The purpose is to use the venue for 2014 Commonwealth Games, which Glasgow is hosting – specifically the Rugby 7s on 26 and 27 July 2014.
Unusual Terms: RFC effectively make all aspects of the stadium available for GCC to hold the event, with exclusive use from 22-30 July 2014.
Venue Record of Condition – joint inspection to check the state of the stadium before GCC takes over.
RFC permits GCC to set ticket prices, close certain parts of the stadium, will provide it with access to equipment rooms and provide information in relation to the stadium and surrounding areas on request.
GCC will provide security, medical services. It will also pay for: the costs of preparation; utilities (beyond those which would normally be accrued during the period in question); any deductions or refunds to sponsors etc for logos being removed from the stadium. The parties will discuss remedial work to stadium following use.
GCC will make a available a contingency venue for any fixtures RFC wishes to play during the period. Additional payments to compensate RFC for the inability to hold fixtures during the period will be calculated according to the equivalent revenues received between 2011 and 2013.
GCC is entitled to name the stadium during the period, subject to any agreements between RFC and a third party.
GCC has no duty to consult RFC on commercial and marketing rights it holds in connection with the 7s and the stadium.
RFC has no broadcast rights for the Commonwealth Games, cannot reproduce CG intellectual property rights and has restrictions on its marketing rights.
Detailed dispute resolution procedures.
RFC will have no claim for indemnity, damages or compensation by if it is informed by GCC that the CGs have been taken away from Glasgow before 22 July 2013.
GCC can terminate immediately if the stadium not up to standards required on Delivery Date (22 July 2014), or any relevant sporting federation withdraws its approval of the stadium for the 7s as a result of a breach of the agreement.
Additionally, on 17 October 2008 the Scottish Ministers provided a guarantee to RFC which stated that they will pay RFC any revenues due under the Venue Use Agreement that GCC fail to pay. The liability of the Scottish Ministers shall in no circumstances exceed that of GCC.
Who needs a Sugar Daddy when you have a very wealthy friend in Glasgow City Council?
Did someone mention State Aid?