The client
Heworth Amateur Rugby League Club is a well-established community sports club based in York, with land that included a telecoms installation operated by On Tower UK Ltd. The club sought professional support to protect its interests during negotiations relating to the telecoms arrangement.
The brief
The club required specialist representation to advise on the renewal of its telecoms lease with On Tower. With the lease due for renewal, the committee wanted to make sure that any outcome reflected the best possible commercial position for the club. This included balancing long-term value against the statutory rights held by the operator.
The challenge
On Tower benefitted from extensive statutory rights under the Communications Act 2003, significantly strengthening its negotiating position. As part of the renewal discussions, the operator proposed a new annual rent of £1,500. This represented a substantial reduction from the existing passing rent.
This created a clear risk that entering into a renewal lease would materially reduce income from the site while preserving long-term occupation rights for the operator.
Our approach
Rather than focusing solely on lease renewal, we explored alternative strategies that could deliver a stronger outcome for Heworth Rugby Club. We identified that the land occupied by On Tower, measuring approximately 200 square metres, could be more effectively monetised through a freehold disposal rather than a continuation of the lease arrangement.
By reframing the negotiations and engaging with On Tower as a purchaser rather than a tenant, we were able to create a solution that aligned with the club’s wider financial objectives.
The outcome
We successfully negotiated the sale of the freehold of the land occupied by On Tower for £125,000. The operator also agreed to cover all of the club’s professional fees incurred during the process.
This approach delivered a significantly stronger financial result than a lease renewal. It also provided the club with an immediate capital receipt that could be reinvested into its facilities. To explore how telecoms assets can be restructured to unlock capital value, contact us for specialist advice.