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Bristol Rovers lose case over Sainsbury's stadium deal Bristol Rovers lose case over Sainsbury's stadium deal
(about 3 hours later)
The High Court has ruled in favour of Sainsbury's pulling out of a deal that would have allowed Bristol Rovers to build a £40m football stadium. Sainsbury's has won its High Court battle with Bristol Rovers over a £30m deal to buy the Memorial Stadium.
Sainsbury's agreed to buy the Memorial Stadium in 2011 and lease it to the club while the new stadium was built. Sainsbury's agreed to buy the Memorial Stadium in 2011 and lease it to the club while a new 21,700-seat stadium was built north of the city.
It argued that planning conditions over a new store were not met on time. The supermarket has said the sale is "no longer commercially viable". But it argued that it was entitled to pull out because conditions linked to the deal had not been met.
The club said it was "likely to pursue an appeal against the judgement". The club described the ruling as a "kick in the teeth" and said it was likely to appeal.
A Bristol Rovers spokesman said it was "a disappointing outcome for the club and a kick in the teeth for Bristol", but the League Two side was still committed to building a new stadium. The Sainsbury's deal was a key part of plans to move from the 12,000-capacity Memorial Stadium in Horfield, described in court as "old fashioned and rather dilapidated" into a new £40m ground to be built in Stoke Gifford.
A club spokesman said the League Two side was still "committed to building a new stadium to secure the club's future".
'In the doldrums''In the doldrums'
The contract to buy the club's current stadium in Horfield for £30m was signed in December 2011, but the deal was struck before planning permission was granted. The contract to buy the club's current stadium in Horfield for £30m was signed in December 2011, but planning permission for a new supermarket on the site was not granted until January 2013 and was further delayed by judicial review.
It was January 2013 before Bristol City Council approved plans for a new supermarket on the stadium site and that was delayed further by judicial review, prompted by local traders.
At a six-day High Court hearing in May, Sainsbury's argued it had "lawfully terminated" the contract when planning conditions were not met before the "cut-off date" in the agreement.At a six-day High Court hearing in May, Sainsbury's argued it had "lawfully terminated" the contract when planning conditions were not met before the "cut-off date" in the agreement.
But the club said the contract was still running, or had been terminated in breach of its terms. But the club said there had been a "misunderstanding" about the significance of the cut-off date and argued the contract was still running, or had been terminated in breach of its terms.
The court heard the current stadium was "old fashioned and rather dilapidated". On Monday, the judge Mrs Justice Proudman ruled that "Sainsbury's must succeed" because the construction of a schedule to the agreement "seems like an insuperable barrier" to the club winning the case.
The club's QC David Matthias argued that Rovers were "in the doldrums" in the Conference Premier following relegation from the Football League. Bristol Rovers accused Sainsbury's of having "reneged on its promises to the local community to invest in the region". The supermarket said the judge had "made no findings of Sainsbury's acting in bad faith with the club".
He said the club hoped to boost its fortunes by moving to a new 21,700 seater stadium in Stoke Gifford. A spokesman for the supermarket added: "We understand that this is a sensitive issue locally and that there will also be disappointment as a result of the court's decision today. We will continue to work with the local community via our existing Bristol stores."
Rovers have since been promoted back into the Football League.