Deal edging closer? | Page 56 | Vital Football

Deal edging closer?

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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I don't think you could use the stadium as collateral for a loan as if you defaulted the bank wouldn't be able to do anything with it due to the council covenents.

Rugbys rent is also fixed i believe and it goes nowhere near covering the annual loss.

We tried to get the business rates lowered with a legal challenge which was rejected in 2018, we appealed again in 2019 and we lost again. Our business rate is nearly 600k, while other L1 clubs average is 90k. So it looks like we aren't getting it changed any time soon. Even if we did we are looking at a 400k loss annually.
 
king_dezeeuw06 said:
I don't think you could use the stadium as collateral for a loan as if you defaulted the bank wouldn't be able to do anything with it due to the council covenents.

Rugbys rent is also fixed i believe and it goes nowhere near covering the annual loss.

We tried to get the business rates lowered with a legal challenge which was rejected in 2018, we appealed again in 2019 and we lost again. Our business rate is nearly 600k, while other L1 clubs average is 90k. So it looks like we aren't getting it changed any time soon. Even if we did we are looking at a 400k loss annually.
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seems crazy to me that we are paying so much in rates ! That coupled with low rent to both the rugby (and no doubt ourselves) means it’s no wonder it’s losing Money !
Who sets these rates ? What reason(s) were given When the appeal results were announced ?
In view of this recent sorry state of affairs do you think another appeal with both Nandy & Council on side could succeed ?
 
king_dezeeuw06 said:
I don't think you could use the stadium as collateral for a loan as if you defaulted the bank wouldn't be able to do anything with it due to the council covenents.

Rugbys rent is also fixed i believe and it goes nowhere near covering the annual loss.

We tried to get the business rates lowered with a legal challenge which was rejected in 2018, we appealed again in 2019 and we lost again. Our business rate is nearly 600k, while other L1 clubs average is 90k. So it looks like we aren't getting it changed any time soon. Even if we did we are looking at a 400k loss annually.
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Of course the stadium could be used as a security for a loan, the current company and Whelan have both used it to secure their bank loans from Barclays Bank. That information is listed in the accounts.

Rugby's rent is fixed, as is ours, but in the scenario I proposed where both clubs and the council took equal stakes in the stadium they could renegotiate it and both having an interest in the stadium might consider upping their rent.

The stadium costs approx 4-5million a year to run according to the accounts, 2.4 million of this is covered by the Hospitality and Catering. The stadium could be renamed as the deal with DW has finished bringing in another 150-200k per season leaving the rest to be covered by rent and other incomes.

Not a lot to find and wouldn't need massive rent rises. If the clubs paid 750k each that would probably cover it with the reduced staffing costs made by admin.
 
Made in Wigan said:
It’s not the length, it’s the time. Folk won’t jump on 40 minute bus journeys. For many socialising in the pub is a big part of the day, travelling all that way say on a bus will be too much of a burden. The club is at deaths door and given only half the fan base support it despite that means the idea won’t work. If we don’t remain the rugby club isn’t viable, so either a solution is found or both clubs die.
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What do wiganers who watch MUFC LFC EFC MCFC BWFC and Chorley do?
 
walgarthjohn said:
That’s a bit insulting. To a fan You could well be rich business man. And maybe clever that a few on here but think made in Wigan as made a good point about our fans. I’ve watched wigan for over 50 years. And Leigh. Sorry. To say not for me. And just text 6 mates all say the same
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But your from Hindley.
Halfway between Wigan and Leigh
What is the problem
 
Degsy1 said:
seems crazy to me that we are paying so much in rates ! That coupled with low rent to both the rugby (and no doubt ourselves) means it’s no wonder it’s losing Money !
Who sets these rates ? What reason(s) were given When the appeal results were announced ?
In view of this recent sorry state of affairs do you think another appeal with both Nandy & Council on side could succeed ?
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Rates set by government, they were based on Premier League income we appealed on grounds that Prem revenue gone - 2 appeals didn't accept this was good enough reason to reassess rates. Appeals rejected in 2018 and 2019 so if they wouldnt budge then a third appeal in 3 years likely to be accepted?

If we don't own it anymore, the previous company is replaced by a new one or we aren't there a new challenge may have a chance. But it would be a gamble to buy it on the assumption it would happen.
 
TRUE BELIEVER said:
Of course the stadium could be used as a security for a loan, the current company and Whelan have both used it to secure their bank loans from Barclays Bank. That information is listed in the accounts.

Rugby's rent is fixed, as is ours, but in the scenario I proposed where both clubs and the council took equal stakes in the stadium they could renegotiate it and both having an interest in the stadium might consider upping their rent.

The stadium costs approx 4-5million a year to run according to the accounts, 2.4 million of this is covered by the Hospitality and Catering. The stadium could be renamed as the deal with DW has finished bringing in another 150-200k per season leaving the rest to be covered by rent and other incomes.

Not a lot to find and wouldn't need massive rent rises. If the clubs paid 750k each that would probably cover it with the reduced staffing costs made by admin.
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If i recall correctly the stadium between Latics, Warriors and all other event hire only brought in 800k combined in last stadium accounts. So if I'm remembering right you are looking at heavy rent increases.

We apparently also keep all of the mone spent on food and drink from Warriors and it doesn't really help cover the loss.

Reduced staffing costs will be offset by lack of match day revenue. I think it's a lot harder than you anticipate to bridge the gap.
 
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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They won't sue Jordan as he is absolutely spot on and given his football history could probably prove it.
 
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