Why cricket clubs might need a new lease of life

One of the trending topics on my travels this year for Cricket Yorkshire has been land ownership and the restrictions imposed on cricket clubs.

In this article with Howden, our insurance partner, we’ll look at some of the issues relating to leases that may affect clubs, as well as their insurance.

(This is a general discussion and not legal advice, it’s important to stress. Also, photos used here are just for illustration purposes).

Land ownership

Many cricket clubs across England and Wales don’t own the land on which they operate. It might be a private landlord-tenant arrangement or a council-owned cricket ground.

While the variety in circumstances is common, what has surprised me is the range of challenges that clubs are met with in their bid to secure their future.

I have heard about everything from councils taking years to renew a lease to a landowner’s efforts to make life extremely difficult in order to get rid of a club.

I was also alarmed at the stringent clauses one parish council had placed on a cricket club that has effectively shackled its growth and made it financially unstable, not to mention harder to attract players or start a junior section.

This comes if cricket clubs as tenants are not permitted to display any hoardings or advertising material within the grounds which is such a staple of income in club cricket.

Short or rolling leases

In conversations with club volunteers and others this summer, it’s become apparent how many recreational clubs have very short leases or a rolling, month-to-month arrangement.

While there might any number of reasons for that, it doesn’t exactly imbue confidence and long-term thinking. It might also make grant applications problematic if discussions rumble on and on.

The ECB County Grants Fund requires security of tenure – Leasehold, Freehold or Rental (minimum one year) and understandably, other capital expenditure from funders might not be forthcoming for grants, if a club’s future is seemingly on shaky ground.

There are a few potential caveats to this. Security of tenure (as enshrined in the 1954 Landlord & Tenant Act) means a business tenant can stay in the property after a lease runs out and ask for a renewal.

Given cricket clubs are often hundreds of years old, it is also not uncommon for clauses baked in as to the use of land for cricket or sport. Either way, understanding your cricket club’s lease is vital.

I have been told plenty of examples where a club assumed they owned land but when push came to shove, they didn’t which might cause insurance or other headaches.

Property & equipment insurance

Howden’s Property & Equipment insurance includes:

• Market-leading cover for buildings, contents and equipment including grounds keeping equipment, training nets and covers
  
• Business interruption cover to protect club income
  
• Cover can be arranged for flood, whatever your club’s circumstances and prior history
  
• Discount for completion of risk assessment as part of your registration

Full repairing and insuring lease

Some councils are keen on cricket clubs taking on a full repair lease – which is a double-edged sword and won’t suit everyone.

Maintaining cricket pitches is likely not high on the priorities for cash-strapped local councils so one route is for a club to agree to a lease where they assume all costs relating to maintenance and repairs on the land.

Why on earth would clubs agree to that? Well, it grants better control of the land and might well open up new grant eligibility that a council can’t tap into. A club has to assume more risk for the whole site, interior and exterior, but can use its own suppliers and in some ways, manage costs and upgrades.

Taking on enhanced responsibility can be a way to improve your cricket ground (no more grumbling about outfields not being cut) and allows clubs to make longer-term plans with more confidence.

Insurance implications

A Full Repairing and Insuring (FRI) lease also means that comprehensive building insurance is squarely with the cricket club. That actually offers clarity because your club committee will know exactly what’s covered – rather than a third-party that will muddy the waters.

Two basic but important points to emphasize:

• Do you definitely know what land the cricket club is responsible for?
  
• Make sure the whole site is properly insured

With council involvement, the whole process can be much longer with regards to decisions on land and leases. I was told of a cautionary tale where a cricket club was effectively living out of portakabins for a number of seasons after a serious fire.

The council took on responsibility for the building but it was under-insured and they stalled on paying out the extra sum, totalling hundreds of thousands of pounds, to rebuild.

Opportunity knocks?

If some of this sounds a little alarming, let’s look at things from a different perspective. As councils increasingly struggle with the cost and time of maintaining cricket grounds in a long list of commitments, clubs can take more control of their destiny.

It requires volunteers wiling to shoulder that burden (but the right insurance can protect individuals). The ECB’s Combined Liability policy includes Directors’ and Officers’ Liability.

Two things I know for sure.

To focus on Yorkshire for a moment, we have lost many grounds over years and at the same time, more teams and leagues require places to play.

It’s the kind of equation that highlights how important safeguarding your current ground and assets is.

Get in touch with Howden

If you’re a cricket club reviewing its insurance over the coming year, you can get an online quote from Howden and also have a chat to see how they can help.

Whether your club owns the land or leases it from a private landlord or a council, Howden can advise on insurance implications.

Their expertise in helping clubs with bespoke cricket insurance is considerable. As the ECB’s cricket insurance partner for the recreational game, all registered clubs receive Public Liability, Employers’ Liability, Professional Indemnity, Directors’ and Officers’ Liability and Cyber Liability.

t: 01883 868521

e: [email protected]

w: Get a Quote Online from Howden

Cricket Yorkshire partners with Howden to share news and advice relating to cricket insurance, here is the section of the website dedicated to cricket club insurance advice.

This is Partner Content for Howden – if the mood takes you, click to read Cricket Yorkshire’s policy on Partner Content.