Deal edging closer? | Page 55 | Vital Football

Deal edging closer?

moonay said:
I'm not sure if they can be, but as I said, I'd have thought that there'd be a good case based on it no longer being a Premier League stadium, and moreso if it were rugby owned..........with far less money in the sport (not that that should matter).
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I’m sure we used the argument about us not being a PL club before and failed. We also failed on the Policing costs I recall. Seems we don’t have much success at court cases.

Bit of a gamble for Pollard then.
 
FrancosLoveChild said:
Watch him be on a fat contract that makes it very difficult to sack him like with Cook to deter our only bidder.
Anyway, these admins are jokers.
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Very odd. Setting aside his qualities or deficiencies (and having seen the Sunderland documentary there is plenty of the latter) I’d have thought hiring someone at this time and adding to the cost is just plain daft. Perhaps he’s here on no wage to dip his toe back in. Think he tried to do the same thing at Bolton last year. Odd decision nonetheless.
 
king_dezeeuw06 said:
With the best will in the world i can't see what she or anyone else could do to be honest. Admin are not going to listen to anyone and just carry on as they were.
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Yeah, I agree she's got limited influence with the Admins, but maybe more with the council (and the plan B) ......... and who knows, maybe even the Americans, dependent on their wider intentions.
 
moonay said:
Yeah, I agree she's got limited influence with the Admins, but maybe more with the council (and the plan B) ......... and who knows, maybe even the Americans, dependent on their wider intentions.
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It appears Nandy and the council are on the American's side so it's certainly something.

Simon Jordan hit the nail on the head with these admins. Suprised they haven't tried to sue him for it, knowing our admin one will say they have started legal proceedings and the other will say they have no interesting in suing.
 
king_dezeeuw06 said:
It appears Nandy and the council are on the American's side so it's certainly something.

Simon Jordan hit the nail on the head with these admins. Suprised they haven't tried to sue him for it, knowing our admin one will say they have started legal proceedings and the other will say they have no interesting in suing.
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Seems the threatened legal action against the whistleblower (who was sadly quite accurate) never materialised. It’s the problem with these off the cuff comments they make, they don’t think them through.
 
OnLoanfromEnfield said:
Re the stadium and the losses
The write down in the value of the stadium year on year was the primary cause of losses. It doesn't lose squillions of quid each year.
Until this commie virus is considered normal flu (like) any owner will have costs to pay out with no income.
Whoever buys it will be getting a bargain in the long term.
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Do you have the figures OLFE, I have tried to find them on the Companies House site but I am obviously not as savvy tech wise as your good self.
 
Just managed to find the stadium accounts and apart from a period in the mid 2000's the stadium has continually made losses.

It would appear that the major income stream is the catering and hospitality sector, making up more than half the money taken in, about £2.5 million last year.

The rental income and stadium hire charges for last year are shown as 811k, and I assume that is from both the football and rugby clubs plus any other one off rentals as there is no breakdown.

Stadium naming rights are much reduced last year as the deal with DW ended but in the previous year it was 167k

The biggest outlay was on Directors and Staff wages, a massive 1.8 million. The breakdown of staffing shows that there are 13 admin staff, 4 sales and marketing and over 100 stadium staff, most of which I assume are part time catering and security staff for match days.

Looking at those figures there is not a lot of wiggle room to increase profitability other than to increase the rentals for the two clubs, and maybe that would not be out of reach if an agreement for all three parties, the football and rugby clubs and the council to take joint ownership of the stadium could be reached.

There is also scope for the hospitality and catering to be exploited by utilising the stadium facilities more effectively and encouraging the council to use them for more of their activities.

According to the Directors statement in the accounts the stadium cost £35 million to build and after amortization currently stands on the books as £27.9 million. Not a bad return for an asking price of £3 million.

To say that the stadium is losing masses would be wrong, it makes a loss but I would say that it could be turned around by a joint ownership venture in which the two clubs upped their rents and agreed to share the costs in relation to their usage. Bring into the mix the SC's of both clubs and I believe you would have a balanced board with the interests of both clubs represented and the opportunity to make the stadium a sustainable venture.

One other thing that I noticed is that the book value of the Stadium is far in excess of what is being asked. The asking price is a forced sale valuation, that is the price that is required for a quick sale. In terms of a normal valuation, for the sake of raising or securing a loan I would think that would be much higher and would allow the property to be used as security against a bank loan to enable the new company to operate successfully.
 
TRUE BELIEVER said:
According to the Directors statement in the accounts the stadium cost £35 million to build and after amortization currently stands on the books as £27.9 million. Not a bad return for an asking price of £3 million..
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I'm not an accountant, (though I studied Accounts as part of Business Studies years ago), but I'm Sec of our local CC, and when we moved ground, and built a new pavilion about 25 years ago, we've been obviously depreciated the value of the pavilion in the accounts.

I have to say, that for the stadium to still be almost £28m from a value of £35m, the depreciation applied seems very low. I'd have thought it to be way more than that.

Edit - Numpty alert ! Just had a shufty at the CC accounts, and I was mixing things up with capital equipment - mowers, rollers, etc - not the buildings !
:sorry:
 
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TRUE BELIEVER said:
Just managed to find the stadium accounts and apart from a period in the mid 2000's the stadium has continually made losses.

It would appear that the major income stream is the catering and hospitality sector, making up more than half the money taken in, about £2.5 million last year.

The rental income and stadium hire charges for last year are shown as 811k, and I assume that is from both the football and rugby clubs plus any other one off rentals as there is no breakdown.

Stadium naming rights are much reduced last year as the deal with DW ended but in the previous year it was 167k

The biggest outlay was on Directors and Staff wages, a massive 1.8 million. The breakdown of staffing shows that there are 13 admin staff, 4 sales and marketing and over 100 stadium staff, most of which I assume are part time catering and security staff for match days.

Looking at those figures there is not a lot of wiggle room to increase profitability other than to increase the rentals for the two clubs, and maybe that would not be out of reach if an agreement for all three parties, the football and rugby clubs and the council to take joint ownership of the stadium could be reached.

There is also scope for the hospitality and catering to be exploited by utilising the stadium facilities more effectively and encouraging the council to use them for more of their activities.

According to the Directors statement in the accounts the stadium cost £35 million to build and after amortization currently stands on the books as £27.9 million. Not a bad return for an asking price of £3 million.

To say that the stadium is losing masses would be wrong, it makes a loss but I would say that it could be turned around by a joint ownership venture in which the two clubs upped their rents and agreed to share the costs in relation to their usage. Bring into the mix the SC's of both clubs and I believe you would have a balanced board with the interests of both clubs represented and the opportunity to make the stadium a sustainable venture.

One other thing that I noticed is that the book value of the Stadium is far in excess of what is being asked. The asking price is a forced sale valuation, that is the price that is required for a quick sale. In terms of a normal valuation, for the sake of raising or securing a loan I would think that would be much higher and would allow the property to be used as security against a bank loan to enable the new company to operate successfully.
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so in the latest set of accounts the stadium is marked down as worth £27.9m. And Only £3m is being asked in the currrnt fire sale !.

I realise it’s currently losing money but how much rates does it pay each year ?
Perhaps this is something that Nandy and the council could help with by lobbying the government for a lower rateable value ?

getting to the hard facts it’s currrntly valued in the books at £27.9m and let’s face it you couldn’t build a stadium like that for much less !

to me it’s a no brainier - buy the club, training ground and stadium for around the £3.5m and then do a deal with the Rugby wrt rent etc while in parallel use the stadium deeds as collateral on a decent loan for as much as you can get (which I’m sure is much more than £3.5m ! Based on its current book value)

the stadium loan should cover the purchase costs and properly structured over a decent no of years and takinking advantage of today’s record low interest rates, I’m sure someone with a decent head on their shoulders could make this work and the stadium loan would pay them back their buying costs !

to me it’s a no brainier for anyone wanting to come into football - if I had £3.5m to spare that’s what I’d be looking at doing ! - the more I think about it the more of a no brainier it looks !
 
Degsy1 said:
so in the latest set of accounts the stadium is marked down as worth £27.9m. And Only £3m is being asked in the currrnt fire sale !.

I realise it’s currently losing money but how much rates does it pay each year ?
Perhaps this is something that Nandy and the council could help with by lobbying the government for a lower rateable value ?

getting to the hard facts it’s currrntly valued in the books at £27.9m and let’s face it you couldn’t build a stadium like that for much less !

to me it’s a no brainier - buy the club, training ground and stadium for around the £3.5m and then do a deal with the Rugby wrt rent etc while in parallel use the stadium deeds as collateral on a decent loan for as much as you can get (which I’m sure is much more than £3.5m ! Based on its current book value)

the stadium loan should cover the purchase costs and properly structured over a decent no of years and takinking advantage of today’s record low interest rates, I’m sure someone with a decent head on their shoulders could make this work and the stadium loan would pay them back their buying costs !

to me it’s a no brainier for anyone wanting to come into football - if I had £3.5m to spare that’s what I’d be looking at doing ! - the more I think about it the more of a no brainier it looks !
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As far as the loans concerned, my thoughts entirely.

The rates are difficult to obtain although I am trying, perhaps OLFE could help out with this as he seems more computer savvy than I am.
 
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