Through our exclusive partnership with Buckingham Leasing we offer (subject to approval) the option of Operating Lease funding for your sports facility.
Sports Operating Leases allow you to spread the cost of investing in new sports facilities. The Operating Lease enables you to refurbish or construct a new artificial sports turf pitch, playing court or athletics track in return for agreed regular payments.
Find out more about Operating Leases below or get in touch for an informal chat about your project.
A sports Operating Lease is a form of financing that is particularly beneficial to state and academy schools.
Already commonly used across the sector, Operating Leases are not classed as borrowing, therefore do not require Secretary of State for Education (SSE) authorisation (as would be the case with a Finance Lease or similar).
With a sports Operating Lease, you can refurbish or build a new sports facility – with no deposit – in return for fixed repayments over a period of 1-7 years, on a repayment schedule that works for you.
Through our exclusive partnership with Buckingham Finance, our clients (subject to approval) can now use Operating Leases to fund, build and maintain their sports facilities through one single point of contact.
Utilising an Operating Lease, with a deposit of £60,000 we we can construct a brand new 3G all-weather sports pitch from as little as £8,300 per month (subject to site survey, conditions, and specifications).
See our real-world example below for more details.
Perhaps the single biggest benefit of an Operating Lease, as with our other finance options, is the ability to spread the cost of your new or refurbished sports facility over time.
Monthly costs for an Operating Lease however are lower than other forms of finance, as you never pay back the full asset value under the terms of the agreement.
With competitive rate fixed repayments and no-deposit options you can refurbish or build a brand-new sports facility without ever needing to lay out large capital sums in one go.
This not only maximises cash flow but frees up capital to invest in other areas of your school.
Sports Operating Leases also come with notable tax benefits, allowing your school to claim back VAT on each and every payment.
Many schools generate additional revenue for their organisation through the hire of their facilities. This means you can offset repayment costs through hire revenue, allowing your new or refurbished pitch, track or playing court to help pay for itself!
The John Madejski Academy did just that, using an Operating Lease to fund the refurbishment of their FIFA Quality 3G Pitch, with pitch hire revenue offsetting their lease repayment costs.
Below you’ll find a real-world quote for an organisation who wish to finance the construction of a brand new 3G artificial grass pitch via an Operating Lease.
The example includes a low deposit and no payment for 3 months. The balance is paid back in fixed monthly payments over the remaining 7 years.
Operating Lease Agreement Example
|Cash Deposit||£60,000.00 + VAT|
|Balance Financed||£600,000.00 + VAT|
|81x Monthly Payments||£8,222.31 + VAT|
*Figures quoted are correct at time of writing (March 21) and serve for illustrative purposes only. Contact us for a tailored quote.
In this example, with a significantly reduced up front cost, the club is able to build their new 3G Pitch before repayments begin.
After 3 months, repayments begin and the lessee will pay just under £8,300 a month for their new pitch over the duration of the agreement, with full ownership at the end of the term – and the ability to reclaim VAT on every lease payment.
Through our exclusive partnership with Buckingham Leasing, we can now fund, construct and maintain a variety of sports facilities.
A selection of facility types can also include maintenance packages, as well as ancillary features such as floodlighting and fencing, allowing you to spread the full project cost over the term of your agreement.
Sports Operating Leases are recommended for the below organisations:
Operating Leases may be an option for independent schools but schools must check their constitution, or memorandum and articles of association, (whichever is appropriate) to check if they are able to borrow. It is worth noting that not all charities have the power to borrow.
For independent schools, universities, leisure operators, elite sports clubs and other organisations, Hire Purchase Agreements (if VAT registered) and Finance Leases (if non-VAT registered) are the recommended finance solutions to fund your facilities.
S&C Slatter are experts in the design, planning, and construction of artificial sports pitches. We are experienced in working with schools who utilise funding and finance options to refurbish or build new sports facilities.
Through our exclusive partnership with leading asset finance brokers Buckingham Leasing, our clients can now fund, build and maintain first-class sporting facilities through one experienced point of contact.
If you’re planning to resurface an existing pitch, playing court or track – or construct a new one – please contact us for advice, guidance, or a free consultation.
The Education & Skills Funding Agency has published detailed information and good practice in academy trust financial management which includes: Leasing guidance for academy trusts.
The Department for Education offers guidance on best practice and practical suggestions on how to find the best value for money agreements here: Leasing and subscription services for school equipment.