Bristol City strikes deal with Sainsbury's

Bristol City FC has struck a deal to sell its ground at Ashton Gate to a rival of supermarket giant Tesco, the Evening Post understands.

It is believed the deal is with Sainsbury's and is expected to be for a bigger store than Tesco had planned.

The surprise move would pave the way for the club to build a new £65million stadium at nearby Ashton Vale.

Only one hurdle would remain – for councillors to grant planning permission for the new stadium at a council meeting in two weeks' time.

A planning application for the Sainsbury's store would then follow, to be decided in the spring.

If the stadium plan goes ahead, then Bristol is on target to be chosen as a host city to hold World Cup games if the FA wins its bid to stage the tournament in 2018.

Last night neither the club nor Sainsbury's would comment on any new deal for Ashton Gate.

They are believed to be close to agreeing terms before signing a final deal.

The potential new deal would mean that only two big supermarkets would be sited in the Bedminster area, instead of three if Tesco had clinched a deal with the club.

This should please campaigners who have fought against plans for a Tesco store at Ashton Gate.

One of their main objections has been against a third supermarket in the area.

Sainsbury's wants to move its current 52,000sq ft store off Winterstoke Road to the Ashton Gate site.

Despite the popular store being extended by 50 per cent eight years ago, it can still hardly cope with demand.

It is understood the vacated former UBM site would be sold off for housing.

The Tesco plan is now effectively dead in the water and means that a planning application which was due to be heard next month at a special council meeting is expected be withdrawn.

The council meeting to discuss the stadium plan will go ahead as planned on Wednesday, November 4, at the Council House, starting at 6pm.

The club announced plans last year to build a new stadium on a greenbelt site near the David Lloyd sports centre.

And then it emerged that if the new stadium received the go-ahead, it would open the prospect of World Cup games in the city if the tournament comes to England in 2018.

The club's original plan to sell its Ashton Gate ground for housing was dashed by the recession which led to a dramatic slump in property prices.

The club must maximise its return from the Ashton Gate site in order to help pay for the new stadium which led to a plan for Tesco to build a supermarket there.

Tesco was willing to pay £20 million for the ground, provided planning permission was granted for a new store.

Campaigners criticised the club for linking the new stadium with a supermarket at Ashton Gate.

But club chairman Steve Lansdown insisted a few weeks ago that unless a food store could go ahead, then there would be no stadium. This deal with Sainsbury's has been a closely-guarded secret by the club so as not to damage delicate negotiations.

But it does seem to tick all the boxes as far as objectors are concerned – it will mean only two supermarkets in the area and the current Sainsbury's site is likely to be given over to housing.

It could be seen as a "win, win" deal for the club, its supporters, residents, traders and the city as a whole.

A new stadium will help to regenerate south Bristol which has suffered from a lack of investment for years.

And if Bristol wins the World Cup bid, then it will put the city on the international map and bring hundreds of millions of pounds to the local economy.