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Worcester City freed from St Modwen contract
5:39pm Monday 2nd December 2013 in Sport By Steve Carley - Midlands Sports Journalist of the Year 2013, @stevecarleyWN
WORCESTER City have officially been released from their contract with St Modwen to build a new stadium at Nunnery Way.
The two parties have been in negotiation over scrapping the deal, which had committed the Skrill North club to move to the M5 corridor site until 2017.
Although the terms of the agreement remain confidential, City will receive enough of the £1.266million they paid St Modwen in infrastructure costs to pay the captial gains tax bill on St George’s Lane, which could be as much as £400,000.
They will also have some money left over to put towards a new stadium, such as the supporters’ trust’s plans for Perdiswell.
A joint statement from St Modwen regional director John Dodds and Worcester City chairman Anthony Hampson said: “Following on-going and productive discussions both parties can now report that an agreement has been reached over the detailed terms of the agreement and a deed of release has now been signed by both parties.
“The effect of this agreement is to release Worcester City Football Club from the Nunnery Way contract.
"As previously reported it will allow the football club to meet its capital gains tax liability and also provide some funds for investment into a new stadium for the football club.
“The board of directors at the club believe that this agreement will go a long way towards securing the club's future and remain grateful to St Modwen for accommodating the club’s request.”
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