HARD-UP workingmen's clubs could be thrown a financial lifeline by the sale of the Federation Brewery.

More than 300 clubs in the region will be in line to benefit by up to £80,000 each from an estimated £8m windfall if they back the move.

Members will be given the chance to vote next month on whether to accept the bid by Scottish & Newcastle to buy its Tyneside rival.

Dozens of the region's clubs are suffering financial hardship, and a shares boost from the deal could mean the difference between closure and a more secure future.

For others, the unexpected money could be used to fund events or refurbishments.

Details of the potential windfall emerged last night in the wake of the news that Scottish & Newcastle and the Gateshead's Federation Brewery had agreed a deal.

The Tyne Brewery will close next spring and production will move to the Federation Brewery near the MetroCentre with the loss of 110 jobs.

Drinkers and workers reacted with anger at the prospect of production of the world-famous Newcastle Brown Ale moving across the Tyne.

But the blow will be softened by news that clubs stand to collect between £5,000 and £80,000 as a result of the deal.

The final amount will depend on how many shares the 303 clubs have in the co-operative-owned brewery and how many barrels of its beer they buy.

One club official told The Northern Echo: "There must be three or four dozen clubs that are really toiling and an injection of a few thousand pounds is going to keep them open.

"With this money, clubs will be able to pay off bank debts, carry out refurbishments or improve the quality of their outlets."

Stan Summers, vice-president of the Darlington Northgate Club, said the club was thriving but the cash would still be welcome.

He said: "If it is £5,000 it is not a substantial amount but it could be put to the benefit of our members - kids' shows, outings, treats and the like - and would not go to waste.

"It could be a lifeline for some clubs but we are not in that sort of situation."

The deal between the two breweries is a complicated one, with Scottish & Newcastle initially paying £7.2m for Federation's brewing and packaging facility.

Stage two of the transaction involves £16.3m for the rest of the business, the office block, distribution depot and brands.

Proceeds from the deal will go on Federation's bank debt and a pension "black hole" and the remainder - estimated last night to be £8m - will be divided between the clubs.

Federation Brewery chief executive Geoff Hodgson revealed that a further windfall could come along in three or four years from a property investment in the south of England.

It could mean as much as another £2.8m being shared among the clubs.

Mr Hodgson said the Federation Brewery at Dunston had only been operating at 40 per cent of its capacity and it was faced with a £7.8m hole in its pension fund.

"The Federation Brewery has never been full from the day it opened and we have really struggled over the past two years," he said.

The 150 workers from the Federation Brewery will be combined with the 130 from the Tyne.

But the new operation will only need 170 staff so the company will be seeking voluntary redundancies.