FOI - Contract between the GLA and Better Organisation in relation to Crystal Palace National Sports Centre [Aug 2022]

Your request

A copy of the contract and service agreement between the GLA and Better Organisation in relation to the Crystal Palace National Sports Centre.

Our response

Please find attached the 2010 version of the contract which replaces the original one from 2004.

Note that some of the information contained with the contract is exempt from disclosure under Section 43 (2) (Commercial interests) of the Freedom of Information Act 2000. This provides that information can be withheld from release if its disclosure would, or would be likely to, prejudice the commercial interests of any person, 
including those of the GLA. We consider that the following information falls within scope of this exemption:

• Indexation Definition
• Maintenance Threshold Definition
• Clause 12.1 (investment)
• Schedule 6 – Management fee / payment schedule
• Schedule 7 – surplus share
• Schedule 8 – utility cost sharing
• Schedule 9 – compensation on termination
• Schedule 10 – provisionally approved investment programme
• Schedule 11 – equipment inventory

GLL (previously known as Better Organisation) were procured by the LDA in partnership with Sport England in 2004 to provide leisure management services at Crystal Palace National Sports Centre (CPNSC) under a leisure management contract dated 1 October 2004 which was varied and extended commencing in 2010 between the LDA and GLL (the “CPNSC Contract”). Under The Greater London Authority and the London Development Agency Transfer Scheme 2012, allrights and liabilities of the LDA transferred to the Greater London Authority (the “GLA”) (including the CPNSC Contract) and in 2014, the GLA transferred all its rights, obligations and 
liabilities under the CPNSC Contract to GLA Land and Property Limited (GLAP).

On the 1 April 2022 CPNSC was transferred from GLAP to the GLA and with that the novation of the CPNSC Contract. 

The CPNSC Contract was further varied and extended in 2014 (MD1236), 2016 (MD1602), 2018 (MD2126), 2021 (MD2746) and is due to expire on 31 March 2023. 

The 2004 original contract is the basis for the terms of the operator contract. The subsequent variations mostly address extensions of time but due to them containing commercially sensitive information as above, they have not been released. 

A commercial interest relates to a person’s ability to participate competitively in a commercial activity. The categories of information listed above directly and indirectly relates to the provision of services by GLL and their means of operating in a commercial environment.

In establishing whether this information meets the threshold for consideration of the exemption, we have consulted with the affected third party and they have confirmed that they consider this information to be commercially sensitive. 

Disclosure of information which sets out the assessment of costs anticipated to be incurred in delivering the contract would severely impact upon GLL’s ability to negotiate future competitive contracts with suppliers and contractors, as it reveals vital assumptions made about costs on this and similar projects. It is generally recognised that certain types of information concerning the procurement of goods and service is commercially sensitive. This includes details of a supplier contract or transaction.

The GLA acknowledges that there is a public interest in the activities being undertaken with regards to future tendering opportunities and a specific public interest in the transparency of the GLA’s achievement in delivering Mayoral commitments. However, we consider it not to be in the public interest to release information that would be likely to affect GLL’s position in future negotiations and reduce the GLA’s ability in securing best value for the public purse in terms of future tendering exercises in relation to Crystal Palace National Sports Centre.

We therefore find that the public interest is balanced in favour of non-disclosure because of the harm its release would cause.

If you have any further questions relating to this matter, please contact us, quoting 
reference MGLA230522-1463.