The council approved the city's intention to purchase Andrův stadium

Olomouc - The Olomouc City Council today approved the intention to purchase the Andrův Stadium from the first league football club SK Sigma Olomouc. The club values the stadium, located near the city center, at 186 million crowns, but the city hall will still negotiate the price and conditions of the sale. The proposal for the purchase agreement should be ready by December 19, when the next council meeting will take place.

If the city becomes the owner of the stadium, according to Mayor Antonín Staněk (ČSSD), the entire sports infrastructure will serve sports regardless of the development in football at Sigma. “The aim is to secure ownership of the sports infrastructure and, conversely, to cut off from operating the sports club. This intention is in line with the recommendation of the consulting company Grant Thornton,” explained Staněk regarding the planned purchase of Andrův Stadium.

The city is to repay the purchase price of Andrův Stadium gradually. According to the report submitted to the councilors, in the event of the purchase's approval, the city would pay the football club the first seven million crowns by the end of this year. The repayment of the purchase price would then be spread over 12 years. If the city could manage to reduce the purchase price by, for example, a fifth to 148.5 million, the annual payment without interest would amount to 11 to 12 million.

In the coming years, the city will have to pay an additional 4.4 million crowns annually for the management and operation of Andrův Stadium, as the planned rent from the club of 2.4 million crowns will not cover the total operating costs of the stadium, which amount to 7.8 million per year.

The planned sale of Andrův Stadium to the city is part of a complex transaction that aims to stabilize the economic situation of the football club, which has faced high losses in recent years and ten million in debts. The separation of the club's sports section from the football infrastructure was recommended by the consulting firm Grant Thornton.

The financial performance of SK Sigma football has been loss-making in several previous years. In the 2015/16 accounting year, the club reported a loss of 25.7 million crowns and owed shareholders 71 million due to operational loans. At the end of the 2014/15 accounting year, the club had an accumulated loss of 98 million from the previous period. The results for 2016/17 have not yet been published.

However, Sigma managed to eliminate its debts this year. Entrepreneur Josef Lébr sold his one-third stake in the SK Sigma Olomouc association for a symbolic price after 20 years. In return, the club will repay him an approximately sixty million loan. SK Sigma Olomouc received the funds from the sale of the land under the artificial turf field.

The club management is now negotiating with investors for a capital entry. One of the stands of Andrův Stadium is to be transferred to the city in exchange for its one-third stake in the club. The city hall intends to retain a symbolic one share in the company SK Sigma Olomouc in the future.