CASH-strapped AFC Bournemouth has been given a further six months to repay a £250,000 council loan or develop additional community services instead.

The loan, made to the Football club in 2001 to help with the redevelopment of Dean Court, was originally due to be repaid next Wednesday, May 25.

But with the Cherries currently struggling to meet repayments on approximately £4.3 million worth of debts, the council has renegotiated the terms of the loan.

As well as agreeing a six-month extension, Bournemouth council and Cherries chairman Peter Phillips will discuss additional ways in which the football club can benefit the community.

Mr Phillips welcomed the cabinet's decision, saying it showed the important and valuable role AFC Bournemouth had in the community.

"We're looking forward to sitting down with the council and seeing how the football club can add more value to the town and local community," he said.

And Cllr Adrian Fudge, deputy leader of the council and cabinet member for resources, said: "This extension to the loan gives the club the opportunity to submit proposals for sustaining and further developing its provision of community services for the future.

"We feel it's important to support the club to maximise the benefits they can bring to the local community and this solution is a realistic approach to achieving a return on the loan."

The football club appealed to the council for financial help in 2000, when the old Dean Court stadium desperately needed to be modernised.

At the time, Football Foundation funding of £3 million to build the Fitness First Stadium was at risk if the club was unable to find additional money and prove the council was supporting it.

After much discussion, the council eventually agreed to grant the club £250,000 and lend it a further £250,000.

The grant agreement was completed in May 2001 and committed the club to providing a range of community services from September 2002 to August 31, 2006.

First published: May 20