You’ll remember in October last year I told you I was in receipt of a Heads of Terms for the sale and leaseback of Ibrox, Murray Park and the Albion Car Park. The internet has been full of chatter around this subject for the last week but I didn’t have an update on the subject until last night.
At the time I said the deal would not be signed until after the share issue, which took place in December. Charlie is back in town, and I hear the Sale and Leaseback-ball is in play.
According to the Heads’ the buyer will pay £7.285m for all three properties and, in addition, will provide a loan to the tenant of £6.9m at an interest rate of 15% p.a.
Rent will be reviewed every five years, on an upwards only basis, either at RPI or 2% p.a., whichever is greater. RPI is currently 3.3%
Say Goodbye to Murray Park
The tenant “will take a lease for the stadium and the car park on a 20 year lease at an initial rent of £1.8, per annum”. Murray Park is offski, gone, no longer available to Rangers International, or any of its successor clubs.
Interest on the loan works out at £985.5k per annum, so rent plus interest would be £2.835m p.a.
Top line figure for both sale and loan is £13.835m, however, the first three years rent (£5.4m) will be held back as no one is prepared to guarantee the rent, so actual cash into the business will be £8.435m.
Murray Park planning permission
If the new owner of the properties attains planning permission for residential properties at Murray Park within three years of the deal being signed, a provision releases the seller from having to repay the outstanding portion of the loan. If planning permission is achieved after three years, no element of the loan is forgiven.
Potatoes
The buyer can do whatever they like with Murray Park. Can you suggest a suitable use? Perhaps they’ll plant potatoes.
Securitisation
“Rents will be guaranteed from ticket receipts and a first charge on the season tickets income will be granted.”
The tenant has the option to buy-back the stadium (only). If the stadium is bought-back in year one the cost will be £10m. Thereafter the purchase price will increase by 12% p.a. until year 10. After year 10 the right to buy-back the stadium will be at “Market Value but no less than £20m”.
Should they buy-back the stadium, the lease will remain in place for Albion Car Park at a rate of £250k p.a. (subject to same rent review arrangements).
So what does this mean? The cash will be welcome and will enable to club to survive until into next season. If they spend the money on lottery tickets, there’s a chance they will get lucky and survive well into the season after next.
Suggestions that some people are preparing to squeeze the last penny out of a busted brand are contemptuous.
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Paul’s article reaches the bottom of the pond where an FF jurisconsult identifies a solution:
“This would be a nightmare, but I wouldn’t put it past Ahmed and Green.
The only hope would be that such a deal would be challenged by an institutional investor as asset misappropriation.”
.
4 Yrs ago..During the Night on a Quiet CQN L happened to Post a Wee Post that Celtic had NOT Had a 30+ a Season Goalscorer since Henrik Larsson..
0.00003546777 Seconds Later Ole Sydney Tim Responded that it was a Great Post and l was a Excellent CQNer..
Getting Praise is Great and We All like it..
But Jeezo..
What seems like 137 Years Later l really Regret Pointing that Out to Ole SydneyTim..;-)
Summa of ReptetivePostContentSyndromeCSC
Paul67
Why would anybody loan money to this lot?
Surely some due diligence would tell an investor that a club losing a million or so a month will soon die and these assets will be sold off?
Keep Sally in charge …he`ll burn thro that £9m in jig time in his quest to land the Div2 title
it may even fund a run in the Ramsden`s Cup
Paul67
Who will be responsible for ‘cleaning up’ ipox.?…for H&S etc purposes….a costly task, and well overdue, task…….
auldheid
i too am puzzled about why the club have remained silent on these issues
some would paint this silence as some sort of noble stance
others will say its because they want sevco in the spl
neither of these reasons satisfy me
there must be a reason for the silence but i cant figure it out
one thing i do know for sure though 100%- i was not paranoid enough!
Can I ask a question of those complaining of all the sevo news on here.
For those who are interested in the shenanigans down Gonvan way, just where do you get any info if you cannt get it here.
Just read your heading Paul 67…any thoughts on ticketus having a heavy finger in the ipox pie?
I think the reason Paul67 and other Celtic bloggers are covering this story is because no one else will. Personally, I’m glad they continue to do so. If it wasn’t for these prominent internet bampots keeping us informed there would probably be a Sevco playing in the SPL and troubling us with their baggage.
If Sevco sell and leaseback the stadium does that mean they are no longer responsible for repairs and maintenance costs?
That issue aside, it sounds like Chucky and his gang are perparing a deal to make themselves very rich indeed. No wonder Jim McColl and the “real Rangers men” are in such a panic. Imagine trying to clear up that mess. They truly would be finished as a credible force (if they aren’t already!)
I’m travelling at the moment but I’ll post what I know regarding the likelihood if planning etc, which is not a huge amount but more than nothing when I get back home later.
Clink/o/
ZombieQuickNews?
Who owns the big hoose
Paul 67- For a Celtic angle on the Oldco/Newco/Sevco/SFA/SPL/SPFL/MSM etc etc etc,why don’t you try and get some answers to Celtic’s compliance to any punishments(sic) of said organisations,re-appointment of Campbell Ogilvie unopposed,Doncaster’s appointment etc,etc,etc ?This platform is of course yours,but if you look at some posts today,the growing number IMO are more concerned with the current issues surrounding the Celtic playing squad than the omnishambles on the South side.The rubbernecking at that mob is a deflection to what is more pressing at Celtic Park IMO.Cover up after cover up,non payment of any fines will continue to go unpunished,as did their manager for endangering the family of a man who dared go against “the peepil”.The Sevco stuff is a bore to me as I know they will never be properly punished for their {continued} crimes,so it has become futile.We have problems closer to home ,i.e getting a decent striker in to replace Hooper,not just one who is cheap enough.If Benfica put down £6 mil,will we sell ?I read last week NL said he was close to
signing a new contract,it’s not happened yet and i wouldn’t be surprised if he walked if we fail to get to the CL.My info is he is very frustrated at still trying to scratch around for additions to the squad,this close to the qualifiers.Hail Hail.
sydneytim
13:11 on 15 August, 2013
Your too black and white.
In 101 appearances in holland before he came to Celtic, Larsson only scored 26 goals.
auldheid
13:17 on 15 August, 2013
They are going to experience a major errosion of support when this is confirmed …… this is major for the peepul …….. HH ……. and thank you for your excellent postings…….don’t know how you do it, but you ALWAYS hit the nail on the head…..
Paul67,
How can RIFC do a sale and leaseback the now, has Whyte dropped his legal case Re the sale of the assets?
RE: replacements for the spine of the team.
Have we not already brought in a striker and a centre half? Or is it just that the people moaning about a lack of signings just want more?
Balde has to be given a chance to show what he can bring to the team, likewise with VVD. Only Wanyama hasn’t been ‘replaced’ but we have plenty of CM and Efe can play as DM (my prefered possition for him)
HH
Auldheid
13:17 on
15 August, 2013
—————————————
Fantastic post Sir.
We need to be agreed on what our target is here. Rangers are in their death spiral, they are an irrelevance.
The SFA needs a clearout, root and branch.
I truly hope the rock that has been turned over re Longmuir and Ballantine dealing folding stuff to each other (allegedly) is the first of the domino set to fall.
We need to get on the dance floor at the AGM with our question, good to here there are 60+ of us who have chipped in with our shares.
Clink\o/
Titanic Bulletin Board?
I have many questions on this but the main ones that spring to mind are:
– Is this a done deal or just a proposal?
– Do they have to pay council rates on top?
– Do they have to pay for security/upkeep of the pitch etc. if renting?
– Surely this means they side-step the asbestos issue which could have costed them millions?
– If Murray Park is granted planning permission within 3 years what exactly happens? Does the loan turn into a payment?
Paul67
Keep up the good work. We would all be totally in the dark about this circus if the SMSM had its own way.
time for change
13:18 on 15 August, 2013
I believe the deadline is 24hrs prior to the CL game
HH
gsu
I posted some Seville perspective on the laddie Pukki at the end of the last thread. They liked him. And this was when Seville were a great team.
Ohmni
But zombies can only grunt.
Which in itself is seen as a marked improvement on their previous incarnation
30 goals a season striker… To be honest I would prefer a couple of strikers who regularly score, more goals from midfield and our centre backs heading in corners. If you have one target man he can be marked out of a game. ( St Henrik was the exception)
Paul67 et al
So the old Albion car park trick again. First pioneered by Sir David Murray, one of the first Scotsmen to get a knighthood, for er borrowing money. I’ve noted on here before the reaction of the Daily Record to my questioning of their reporting said sale of car park to himself twenty years back, which was “but look at the money he invested in Scottish football”. To which my reply was not one thin dime, no that was Fergus, not one penny of his own money. Bone fide supporters of the old club should have walked away and started life Moses McNeil style. Mmm, maybe they will get another opportunity.
Whyte must be involved in this
bet it`s a carve up involving all the spivs
their plan is to get Sevco into the SPL ….finacially hamstrung or otherwise and then bail out …will the plan run it`s course
Afternoon Timland, hot and hun free in the mountain valley.
gerry
13:27 on
15 August, 2013
Paul67,
How can RIFC do a sale and leaseback the now, has Whyte dropped his legal case Re the sale of the assets?
………………………………………………………………………….
I was going to ask the very same question.
HH
On Pukki,
Looks a skilful player but I prefer to see my strikers score mostly tap-ins and headers with the occasional wonder-goal – not the other way about.
so thats why murky park hasn’t been renamed then,also fits in with longmanure going to them..i wondered why he’d go there if they were going into admin.soon,i’m sure the hard line berrs will love this news..why have a ludge when you can get it on cqn hee ..any sign of a striker yet? hh
Gordon_J backing Neil Lennon
12:54
Aye, East Dunbartonshire. That was all the talk on the Scottish Football Monitor and Twitter, although to be fair it was more concerning West of Scotland Rugby Club. I was stretching it a bit. There appear to be complex machinations involving Waitrose getting the rugby club land ahead of Cala Homes but Cala Homes maybe getting Murray Park to build on instead. Others think it unlikely Cala will get the planning permission.
The story of the sale/lease was strong possibly about a year ago, the then rumour was that the said rugby club had applied for and were given planning permission for a residential build on their current land, allegedly the local council were sounded out regards Murray park,I am led to believe that was refused as part of the original purchase agreement was no residential builds..could be rumour and counter rumour I’m sure someone with err council contacts could get that substantiated.
Pukki looks decent is those clips. Skillful and scores from all sort of tight angles. Looks like he likes to run onto the through ball though. Maybe not the penalty box strker we need. More impressed by what I’ve seen of Finbogasson but if he’s out of our price range we need to look at other targets.
Some amount of panic merchants on here. I’d rather we held out for the right guy than jumped in for someone who isn’t going to improve us.
gerry
13:27 on 15 August, 2013.
I’m thinking that’s why ticketus have stayed in the shadows…they’re not going to write off millions.
Is it possible that Chuckles plan A has not turned out to be the cash cow he was hoping for and now plan B is for the purchaser to sell the debt and cash in once this deal is complete. Who is the purchaser of the assets? Ally wants to know!
gsu
SydneyTim
12:47 on
15 August, 2013
SyndeyTim….you are very one dimensional and bring little to the debate….unlike Paul67 who runs and manages and drives fantastic debate through a blog that has been going strong for years, just like Glasgow Celtic the champions.
#yirlikeabrokenrecord
PFayr
13:32
They will surely bail out before that.
Carve-up involving all the spivs is a very good summing up, though, my learned friend. It makes you wonder how much of the cash from the sale will go into Sevco FC. If any.
Cut and paste from last article, good read on Pukki
Celtic_First
12:37 on
15 August, 2013
I read quite an interesting article in As that says Teemu Pukki was highly thought of in Seville but asked for a move because he did not enjoy the heat at all. They had been tracking him for some time, apparently using a database that logs all the details of players who make a breakthrough into any top division in Europe by the age of 18.
Then, his performances at a youth tournament in Lisbon convinced the chief scout at Seville to sign him. This means the technical team at Seville were convinced of the lad had a high enough technical ability for their first team, which at that time, 2008, had just won the UEFA Cup twice under Juande Ramos (2006 and 2007).
When they let him go to cooler climes (Helsinki), Seville made sure to get a 40% sell-on close, which kicked in when Schalke signed the boy. As says that Teemu Pukki played a storming game against Schalke in a Europa League qualifier, scoring a hat-trick, after which Schalke thought he was well worth an investment of €1.8 million.
The other interesting thing, for me anyway, that the article mentions is that Pukki was always very grateful to the people who had brought him to a big club (Seville). Technical director, Víctor Orta, was the man who made the long trip north to sign Pukki from his first club in Kotka. When Pukki made his first-team debut, Orta was the man he gave his shirt to. When he made his international debut for Finland in 2009, he saved that shirt and took it back to Seville as a present for Monchi, ex-player and sporting director. Monchi is the guy who is reputed to have the magic touch of signing guys underneath most other clubs’ radars and bringing them through the Seville ranks (people quote Julio Baptista, Adriano Correia, Dani Alves, Seydou Keita, Christian Poulsen, Sebastien Squillaci, Gary Medel, Sergio Ramos and José Antonio Reyes as examples of this).
I like a boy who says thank you.