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Post by ox4eva on Nov 29, 2010 11:21:14 GMT
Did anyone ever hear how much finance we had in place to buy the ground, or how far off it the club is ?
If there was some money available and then we had some sort of loan on the rest would the repayments not be about the same as we are paying in rent at the moment?
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Post by scoob on Nov 30, 2010 1:46:22 GMT
Did anyone ever hear how much finance we had in place to buy the ground, or how far off it the club is ? If there was some money available and then we had some sort of loan on the rest would the repayments not be about the same as we are paying in rent at the moment? IL said that £5M was close to being in place at the last Fans Forum. He suggested that another £5M was needed but that is £3M short of the last price we were led to belive Kassam wanted. I am pretty sure that most of that money will be on loans but maybe the £3M shortfall is cash? Not very clear. I do not know what rates of interest Lenagan would have to pay but I would guess that it would be around 6-8%. At 6% £10M would cost £600,000 in Interest and at 8% it would be £800,000. I am sure you have read that the club pays about £500k in rent but this is rent and costs. From memory the rent is about £350k with costs of about £150k. The costs are likely to continue if the stadium is bought so the saving would be only the rent. So in my above examples the club would cost between £250k and £450k more than it does at the moment. Also what has to be taken into account is the profit that the Stadco currently makes and I believe that this is less than the amount the club pays to the Stadco so if the rent stops then the Stadco will make a loss which will also have to be made up. The decision to buy then rests on whether the purchasor feels that they can add between 1/4 and 1/2 million to the profits of the Stadco to make up for the extra interest. Even then the club will make nothing from the stadium. If some generous people provided a gift or interest free loan (both unlikely I think) of about £5M and the rest is borrowed then any extra income would benefit the club. I hope my interpretation of the situation makes sense. |
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Post by ox4eva on Nov 30, 2010 9:06:38 GMT
Yes cheers, it really frustrates me that we don't own the ground!
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Post by 'Beav' on Nov 30, 2010 11:11:31 GMT
VERY FAR  |
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Post by mcf86 on Nov 30, 2010 12:35:31 GMT
Did anyone ever hear how much finance we had in place to buy the ground, or how far off it the club is ? If there was some money available and then we had some sort of loan on the rest would the repayments not be about the same as we are paying in rent at the moment? IL said that £5M was close to being in place at the last Fans Forum. He suggested that another £5M was needed but that is £3M short of the last price we were led to belive Kassam wanted. I am pretty sure that most of that money will be on loans but maybe the £3M shortfall is cash? Not very clear. I do not know what rates of interest Lenagan would have to pay but I would guess that it would be around 6-8%. At 6% £10M would cost £600,000 in Interest and at 8% it would be £800,000. I am sure you have read that the club pays about £500k in rent but this is rent and costs. From memory the rent is about £350k with costs of about £150k. The costs are likely to continue if the stadium is bought so the saving would be only the rent. So in my above examples the club would cost between £250k and £450k more than it does at the moment. Also what has to be taken into account is the profit that the Stadco currently makes and I believe that this is less than the amount the club pays to the Stadco so if the rent stops then the Stadco will make a loss which will also have to be made up. The decision to buy then rests on whether the purchasor feels that they can add between 1/4 and 1/2 million to the profits of the Stadco to make up for the extra interest. Even then the club will make nothing from the stadium. If some generous people provided a gift or interest free loan (both unlikely I think) of about £5M and the rest is borrowed then any extra income would benefit the club. I hope my interpretation of the situation makes sense. Would there be due consideration given to how realistically we might be successful on the pitch, any investors could not be anything but impressed with the support we get in the FL and did get in the BSP. Therefore, it would not take too much calculation or imagination to work out the potential attendances if say we were to reach Championship level -especially with the fourth stand in place? Another possible factor, maybe there would be an increase in business once the present owner was off the scene, he's hardly enamoured himself to local folk and businesses- has he?!  |
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Post by wizzard on Dec 1, 2010 13:11:43 GMT
Good reply that scoob
In plain English and puts into a nutshell the facts all supporters can understand.
You would never make a politician.
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Post by scoob on Dec 2, 2010 1:08:28 GMT
IL said that £5M was close to being in place at the last Fans Forum. He suggested that another £5M was needed but that is £3M short of the last price we were led to belive Kassam wanted. I am pretty sure that most of that money will be on loans but maybe the £3M shortfall is cash? Not very clear. I do not know what rates of interest Lenagan would have to pay but I would guess that it would be around 6-8%. At 6% £10M would cost £600,000 in Interest and at 8% it would be £800,000. I am sure you have read that the club pays about £500k in rent but this is rent and costs. From memory the rent is about £350k with costs of about £150k. The costs are likely to continue if the stadium is bought so the saving would be only the rent. So in my above examples the club would cost between £250k and £450k more than it does at the moment. Also what has to be taken into account is the profit that the Stadco currently makes and I believe that this is less than the amount the club pays to the Stadco so if the rent stops then the Stadco will make a loss which will also have to be made up. The decision to buy then rests on whether the purchasor feels that they can add between 1/4 and 1/2 million to the profits of the Stadco to make up for the extra interest. Even then the club will make nothing from the stadium. If some generous people provided a gift or interest free loan (both unlikely I think) of about £5M and the rest is borrowed then any extra income would benefit the club. I hope my interpretation of the situation makes sense. Would there be due consideration given to how realistically we might be successful on the pitch, any investors could not be anything but impressed with the support we get in the FL and did get in the BSP. Therefore, it would not take too much calculation or imagination to work out the potential attendances if say we were to reach Championship level -especially with the fourth stand in place? Another possible factor, maybe there would be an increase in business once the present owner was off the scene, he's hardly enamoured himself to local folk and businesses- has he?! Of course all of those factors are part of the boiling pot as are other potential development opportunities. If the rent stays the same or increases in line with inflation or some other indexation then owning the ground with bigger crowds will not make much difference until the fourth stand is needed but I guess that could still be built by Kassam with a commensurate rent increase (god forbid)! When we get to the Championship the level of club income will be massive compared to now and that will have a bearing I guess. I can see part of the new stand being hospitality because that will bump up average ticket prices. I know it is another league higher but I recently experienced Everton's lowest cost hospitality package. There price was £94 and included a lounge (not as good as the lounges at the Kassam) a very poor (£5 in local pile it high carvery) one course meal and slightly padded seats in a stand behind the goal. There was a least 300 people in this lounge and hundreds in the other lounges paying up to £250 +VAT per ticket! I really think the club (and Kassam) are missing out on this potential extra income by not providing these sorts of packages at the stadium. OK we are at a lower level and tickets would be lower cost but £1000s of revenuecould be added from this alone and will increase massively as we progress. My example above was deliberately basic but it gives the starting point for the figures involved. |
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Post by peterdevo on Dec 2, 2010 14:13:01 GMT
It would be nice if the recent Oxford United lottery winner donated something to help, but to be honest I don't blame him not doing so
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Post by mcf86 on Dec 2, 2010 20:19:04 GMT
It would be nice if the recent Oxford United lottery winner donated something to help, but to be honest I don't blame him not doing so Yeah, i only need about £50,000 to retire early -he'd hardly miss it!  |
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Post by hartlyhare on Dec 3, 2010 20:09:27 GMT
perhaps that lottery winner could give an interest free loan?
shouldn't pressure him though
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rsrp2
Full Member
Posts: 234
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Post by rsrp2 on Dec 4, 2010 11:29:28 GMT
I reckon, sadly, that it will be some time before we get ownership of the ground. In these recessionary times there is not the money sloshing around.
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