A “world class” Aberdeen sports facility is predicted to be nearly £2million in the red according to budget papers.
Financial reports to be debated by today’s city growth and resources committee reveal that Aberdeen Sports Village (ASV) has a projected deficit of £1.7 million after reporting a loss of £326,000 for the period ending November 30.
Reserves will be used to cover the shortfall which has been attributed to depreciation.
The £28 million centre, developed by Aberdeen City Council (ACC), Aberdeen University and SportScotland, opened in August 2009 and is now owned jointly by the local and university.
It contains multiple indoor football pitches, recreation facilities and a swimming pool.
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Council spending on the facility is predicted to be £2.7 million over budget, mostly due to pay increases to staff.
Aberdeen City Council is looking to cut up to £50 million from its budget, with the options laid out at a meeting on March 5.
The financial report states: “The forecast of ASV as at 30/11/2018 shows a projected deficit of £1.7 million.
“This would normally be split in a 50:50 ratio between the partners in the Joint Venture; ACC and the University of Aberdeen. However because this is due to depreciation, the partners are not expected to fund any of this deficit but it will rather be funded from ASV reserves.”
A university spokeswoman said: “Aberdeen Sports Village is a world-class facility and provides a breadth of sport and recreation facilities that many of our staff and student community enjoy.
“While we are partners and supporters of Aberdeen Sports Village, it operates under financial management entirely independent of the university. As the report states, as the deficit is due to depreciation, the university is not expected to fund any of this deficit but it will rather be funded from Aberdeen Sports Village reserves.”
The council declined to comment ahead of the report being discussed today.
Opposition SNP city growth spokesman Alex Nicoll said: “The projected £2.7m overspend is a real concern, particularly given the pressures the council is facing in the coming year.”
