Kendal Rugby Union Football Club has announced major plans which could result in thousands of pounds being raised or loaned to fund improvements to its facilities, writes Ellis Butcher.

A meeting of members later this month will vote on whether the 98-year-old semi-pro outfit should change from being a private members club to a company limited by guarantee.

The structure change has been mooted due to concern the club cannot move forward because of the sum needed annually to compete at the current National League Rugby level.

Club chairman Ian Hutton said by changing status, the Mint Bridge set-up could consider modernisation plans which could eventually pave the way for greater successes on the field.

He said this is likely to include another storey being built on the main hall to accommodate corporate functions, which could generate more capital to be spent on investment in the team.

Mr Hutton explained: "What we want to do is upgrade what are really quite dated facilities to try and keep pace with demands. If you stand still you go backwards and other teams will overtake you. Going backwards means slipping down the leagues since that is the yardstick every club is judged by these days."

Director of rugby Chris Hayton said another benefit of change would mean that, in the event of serious financial problems or litigation, the grounds and club house could not be sold off. Also the liability among members would be limited to an agreed figure, with £1 being suggested. Currently as a private members club, the major assets would have to be sold if it became insolvent and any shortfall met by trustees and members.

The proposals called The Way Forward would involve the appointment of a board of five unpaid directors on a yearly basis to run the club.

They could issue debentures or bonds, at an as yet undetermined price, which would be sold to raise extra revenue.

Debenture holders would not recoup any money on their investment but would be offered an as yet undecided benefits package, likely to include inducements such as separate car parking places and use of a private bar.

Officials said the move would also mean the club representing more of an attractive proposition to potential money lenders.

If the changes are agreed, the board would not be allowed to use the land as collateral for any funds it wants to raise, and any sale would be on the proviso that the club would be provided with an alternative ground with state-of-the-art facilities.

The Black and Ambers' first team are currently 13th out of 14 teams in National League 2 with six points from 14 games.

Asked where the changes could take the club, Mr Hutton refused to make any bold predictions. "We have to be realistically ambitious. We are not doing a Netherfield and saying Premier League football in ten years. At the moment we are in a dog fight to stay where we are," said Mr Hutton. "We have to address the way the club is set up. As the club stands it is a private members club and that has its own restrictions and limitations. As a company limited by guarantee, we can do over and above what we are allowed to do now."

Although the club is said to be financially secure, it is considered "old fashioned" for not having followed other clubs in introducing the change, said Mr Hayton.

Mr Hayton explained: "It is very difficult as things stand, that if we want to take a loan to refurbish the club house, we have no structure and there is no protection, so we are seen as a big risk as a borrower. This change would simplify the whole structure of the club."

The proposals will be discussed at an extraordinary general meeting to be held at the ground on January 23.

January 3, 2003 09:00