The owners of League One football club Peterborough United have signed a Memorandum of Understanding with the city council over the purchase of the team’s ABAX Stadium.

The negotiations between the two parties have been led by Dr. Jason Neale, co-owner of the club, which currently sits second in the League One table.

Under the terms of the MOU, the deal for the sale of the stadium to the club is expected to be finalised over the next six months. United sold the ground, formerly known as London Road, to a property developer in 2003. The stadium was then sold on to the council in 2010.

Financial terms of the agreement were not disclosed but United said the purchase price is based on “fair market value”.

“As stewards of The Posh we are building a better, bigger club,” said Neale. “Having control of the ground will allow us to create Championship-grade facilities and grow ancillary commercial income, both of which are critical to our longevity. While there is still work to be done, this is a significant moment for both the community and the club.”

Peterborough Leader Councillor John Holdich added: “By making the purchase back in 2010, the city council was able to ensure the ownership of the ground remained in the city and ultimately returned to the club. It was also able to unlock the development of the surrounding land to create the Allia Future Business Centre, 295 carbon zero homes on the Vista development and space for future affordable Medesham Homes.

“Our city benefits both economically and socially from the club’s continued success, bringing in over £7m of revenue into the city each year, boosting tourism and improving the fitness, health and wellbeing of over 1,000 children from all communities per week. Once the transfer of the land is complete, it will be able to make the changes needed to step up to the Championship and work closer with fans across the city and beyond.”

The MOU also envisions investment in new and improved grassroots training facilities, as well as deepening the relationship between the club and the local community.

Image: Peterborough United