The decision to end a contract with the operator of leisure centres in Lichfield and Burntwood came after it had warned of partial closures due to rising costs, a report has revealed.
Freedom Leisure signed the ten year deal with Lichfield District Council in 2018.
But it was recently announced that the two parties had mutually agreed to end the agreement early with the operation of facilities returning in-house in the coming months.
Now a report to a meeting of Lichfield District Council’s cabinet has revealed that the decision was reached after Freedom Leisure had requested fresh financial support – and warned of full or partial closure of Burntwood Leisure Centre and Friary Grange Leisure Centre.
“In July 2022, Freedom Leisure provided a report outlining the challenges being faced by the Leisure Partnership Contract. This included wage inflation, increased cost of supplies, equipment, goods and services and energy price rises.
“The report requested the council provide full financial support to meet the impact of the energy price increase. The council sought legal advice. In September 2022, Freedom Leisure provided a report containing their latest local energy price increase predictions.
“The chief executive, in consultation with the cabinet lead for leisure and the leader of the council, has led subsequent discussions and negotiations with Freedom Leisure since late 2022. The steer was clear – the council cannot support Freedom Leisure financially any further than has already been provided, but also will not countenance a closure of any part of either the Lichfield or Burntwood facilities.
“In December 2022, following repeated requests for the council to reconsider its position on financial support and the part/full closure of some of the facilities in the district, and recognition the council would not concede on either of these points and instead expected Freedom Leisure to fulfil its contractual obligations, both parties agreed to begin negotiations over a mutual termination of the contract.”
Report to Lichfield District Council’s cabinet
Freedom Leisure’s boss had previously warned that rising energy costs could mean difficult decisions had to be made on the future of centres it operated.
The report to Lichfield District Council’s cabinet has also revealed that the operator will pay an “exit fee” to end the ten year agreement early.
No details about the scale of that payment have been made public, but the report did reveal that it would be split into two instalments – one on 1st April and the second six months later.
The future management of the council’s leisure centres will be debated at the meeting of the cabinet on 14th February.
