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.
The next issue of CQN Magazine is being prepared. Let me know if you would like to advertise, or if you would like to submit an article, celticquicknews@gmail.com.
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Greenside up is Neil Lennon
Visa will be an issue? Hence view that any new signing will not play in the away game.
Hail hail
The question is, if you do not like what is happening in the SFA, what can you do about it?
Go to the press? They will happily string Celtic up as a monster looking for unfair advantage over brave Rangers. Let’s not forget how the majority of this country feel about Celtic.
Raise your concerns with the SFA? I think we all know the credibility of the SFA and their “independent” investigations into wrongdoing.
The only way to get round this is through the courts, like Fergus did. For that you need a different burden of proof. It’s possible the club doesn’t have the evidence.
Times like this make you wonder what Paul McBride would have done.
I agree with mountain_bhoy – this doesn’t pass the smell test. How could the liquidator allow this to happen? One year after the creditors were stiffed by an offer of £5.5M for the assets (most of which went in Administrator fees), those same assets are available at much better terms to a new set of buyers. Sorry – I don’t believe it.
you can’t clean rust!
13:15 on
15 August, 2013
BIGbones8867
ctrl-R
No good,thanks anyway maybe someone else will know.
BB
.
Winning is everything for fans – or is it?
By SydneyTim..Head of Sport Psychobiology..
Why is it dangerous for golf if major titles are spread around thinly?
Why is it good news for England fans that Australia played so much better at Old Trafford and Chester-le-Street? Why did Bernie Ecclestone consider using fake rain in Formula 1 races? Why is the scarcity of goals great for football fans and terrible for bookmakers?
The answer is that sports fans crave an optimal degree of uncertainty. Too little uncertainty and sport becomes boring. Too much uncertainty and the story becomes too complex to follow. There is a sweet spot, a perfect balance between familiarity and drama.
It is a truism that golf is suffering from a post-Tiger Woods era trauma. When Woods was in his pomp, winning 14 majors between 1997 and 2008, golf always had a narrative. Woods was unstoppable, Woods was injured, Woods had recovered, Woods was an iron man under pressure.
His personality, for good or ill, held together the sport’s differing threads. Woods was never bigger than golf. But Woods acted as the sport’s leading man, and just as with a great film, you always knew the star even if others sometimes had the best lines.
Jason Dufner
Jason Duffner’s win in the US PGA on Sunday was just the latest in a long line of first-time champions
This era could not be more different. The last 21 majors have been shared by 19 different players – Jason Dufner’s win at the US PGA confirmed the trend of first-time major winners. It is hard, for the occasional golf fan, to keep up with such a vast, rotating cast of potential heroes.
It also reaffirms the remarkable nature of Woods’s supremacy in the 2000s. It is perhaps the hardest of all sports to dominate in that way: the best player in the world always has to compete with someone who is merely good, but whose putts drop throughout the week.
The combination of Woods’s supremacy and golf’s inherent unpredictability was a perfect pairing. Now, in contrast, we have uncertainty squared – and we crave an anchor of familiarity.
Golf’s last 21 majors
2013: Adam Scott, Justin Rose, Phil Mickelson, Jason Dufner
2012: Bubba Watson, Webb Simpson, Ernie Els, Rory McIlroy
2011: Charl Schwartzel, Rory McIlroy, Darren Clarke, Keegan Bradley
2010: Phil Mickelson, Graeme McDowell, Louis Oosthuizen, Martin Kaymer
2009: Angel Cabrera, Lucas Glover, Stewart Cink, Yang Yong-eun
2008: Padraig Harrington
Two-horse races such as the Ashes are inevitably more prone to spells of over-predictable one-sidedness. On Monday, England completed their fourth Ashes series win in the last five attempts. But this series, fortunately, has turned out to be much more dramatic than looked likely after Australia’s dismal performance at Lord’s in the second Test.
Counter-intuitively, many England fans – even those who suffered the bruising Australian dominance of the 1990s and 2000s – craved a closer contest. With the prospect of another five-match Ashes series this winter, England supporters experienced two conflicting emotions. They wanted to win, obviously, but they also hoped victory would not to be assured without a thrilling story to follow.
That is not a wimpy English lack of ruthlessness. When I played Grade cricket in Australia in the late 1990s and early 2000s, I was struck by how many serious Australian fans did not, in fact, enjoy the predictability of Australian Ashes dominance.
Players are inevitably conditioned to seek businesslike efficiency, but supporters usually hope the story veers off track. Having watched Australia’s performances in the third and fourth Tests, the Ashes series down under is looking a much more exciting prospect for England fans than it was during the Lord’s massacre.
England
England are 3-0 up in the Ashes, but it has not been the one-sided walkover some predicted
Seeking the right degree of uncertainty has led sports to consider artificially manipulating conditions to increase the dramatic uncertainty. Formula 1, for example, is susceptible to periods of technical superiority, when one team achieves insurmountable dominance over the rest of the field. In 2009, Jenson Button (his Brawn GP having been fitted with a special diffuser) won six of the first seven races.
No wonder Formula 1 boss Bernie Ecclestone speculated two years ago that something must be done to stop races becoming too predictable. His solution was simple: it ought to rain more. “Wet races are always the most exciting,” as Ecclestone put it. Even Formula 1, though, is unable to arrange a contract with the weather. So Ecclestone suggested that rain should be artificially supplied by a track-side sprinkler system.
Premier League’s fantastic four
Manchester united
Arsenal – 1997-1998, 2001-2002, 2003-2004
Chelsea – 2004-2005, 2005-2006, 2009-2010
Manchester United – 1995-1996, 1996-1997, 1998-1999, 1999-2000, 2000-2001, 2002-2003, 2006-2007, 2007-2008, 2008-2009, 2010-2011, 2012-2013
Manchester City – 2011-2012
The fact it was even considered demonstrates how even the most technical sports crave narrative uncertainty.
What about the Premier League? How can we account for the worldwide popularity of a league which has only had four different winners – Manchester United, Arsenal, Chelsea and Manchester City – in the past 18 seasons?
The Premier League’s entrenched top four, fortunately, is balanced by another quirk.
Even if the cream always rises to the top over the course of the whole season, football is the most unpredictable sport on any given Saturday. We know this because bookies predict the winners of football matches less successfully than in any other sport.
Why? The huge size of football’s currency unit – the goal – makes luck a far greater force in football than in other sports. A net cord in tennis can randomly determine a single tennis point. But it would be staggeringly unlikely that one player could get enough lucky net cords in one match to change the result.
In football, by contrast, one lucky score is all you need to win the match. So even if they’ve got no hope of winning the league, fans of weaker teams bring legitimate hope to every match.
The sport is structurally predisposed to supply a healthy number of underdog surprises, a forgotten factor in football’s mass appeal.
No one designed football to hit that sweet spot. It was just a happy accident.
Summa
just noticed bt sport on virgin,anyone know when this happened coz i check every few days.bit of good for all virgins out there.
Or our hero and Chuck are cahoots.
makes sence to me that does.
HH
MountainBhoy
I use what I understand of human nature when I’m trying to figure out what is going on.
For that reason I have always thought whoever at Ticketus was shafted would want their pound of flesh and they only way they would get that is having a place where the same bums they thought they were going to make money from were still able to park said bums on a seat.
So if it was in anyones business interests to keep the Big Hoose open it is Ticketus.
That being so they will not just be looking for a good rental, they will be adding a premium to recover that £18m or holding on until they get every penny back plus interest.
No harm to Hearts but it will be very interesting if they go down and meet The Rangers on the way up.
For that reason Hearts supporters should be heading the queue for a reformed SFA. They have potentially more to lose than Celtic.
In that respect I was pleased to hear the Hearts supporters representative say a couple of weeks back that the SFA lacked probity.
time for change
13:36 on 15 August, 2013
Might be right there, but someone posted something the other day about Block visas whatever that is,
HH
gsu
First Gang
Today I believe it was announced.
I hear Mark Daly was working on a programme about Minty Moonbeam’s legacy when he got distracted by the Fort Augustus scandal. Let’s hope he goes back to the project.
BIGbones8867
13:36 on
15 August, 2013
you can’t clean rust!
13:15 on
15 August, 2013
BIGbones8867
ctrl-R
No good,thanks anyway maybe someone else will know.
BB
Ha!! got it,caps lock was on, thank you very much sir,appreciate the help,1st answer I’ve got in 2 attempts…….
BB
This is the only line of credit open to them. Catch 22 for them. No assets after this comes to pass. Less chance of line of credit from a bank in the future. Still need to cut their cloth or die.
Hector
This morning
Malone Bhoy
I have many questions on this but the main ones that spring to mind are:
__________
Will depend on the ‘Heads of Terms’ lease – which could incur a ‘recurring repair and maintenance’ clause (normally the fabric of the building).
Consumables would not be included – usual; heating, lighting, rates, licences for every day trading (ha! ha!) – possibly wear and tear (pitch, painting/ decoration, fixtures and fittings).
Would imagine it will be pretty similar to a rented office block (owned by a Pension Trust) – upkeep would be administered by Factors for the Landlord.
the exiled tim
13:37 on 15 August, 2013
Or our hero and Chuck are cahoots.
makes sence to me that does.
HH
>>>>>>>>>
Yep and ticketus.
Wee craigy off the hook with ticketus and they get their doe.
Charlie and his ilk walk with their pockets full.
Huns suicidal an we party.Hail Hail.
Not too well up in the finance dept.,but this deal seems incredibly like one I used to have with the old”Radio Rentals”.
I think!!!!!!!!.
@sipsini
“Wee craigy off the hook with ticketus and they get their doe.
Charlie and his ilk walk with their pockets full.
Huns suicidal an we party.Hail Hail.”
I’m a bit slow on this
How will Whyte, Green and Ticketus all profit?
Auldheid 13:40
You might recall (April 2011 posts/ emails) when I did a search on Govan Land Valuations and Planning applications – I posted this at the time:
This would give some credence to my thoughts on the lease-back of the stadium – that of a typical landlord developer. They buy something that is cheap and run-down at auction – refurbish it and put it on the market at a higher rent (or sell for a quick uplift).
In this case, tie them down to a long-term lease which they have to accept in order to function (rent guaranteed by season ticket sales) – then depending on the tenant’s performance (and the number of years left on the lease) – sell at the appropriate time in order to realise a healthy profit!
Maybe I am missing something but I can’t see where any short to medium term profit could be made from land acquisition in the vicinity of their stadium.
Poetic??
It’s difficult for the current Sevco cabal (I don’t have a collective noun to hand for Spivs, although am open to suggestions) to extract value out of a sale and lease back just now unless they are the purported landlord, which makes some sense.
More sensible again, take the club into Admin with sufficient friendly creditor backing to get the assets they want on a deal that delivers value, and let the ‘the fans’ get on with running ‘the club’.
Most likely, the story is being fed by the current cabal (a Sevco of Spivs?) with the intention of provoking alarm and action from those who have the wherewithal to buy the Spivs out in early course.
Turkeybhoy
Excellent analogy!
Virgil Van Dijk (@VirgilvDijk) is back in training and may feature against Aberdeen this weekend.
good afternoon cqn
Does this mean,Ally and the division three Champions,will have to train elsewhere,got the perfect place for them,Tontine park looked ok yesterday when I passed it,mind you a dog was doing its Business,I dont no if its owner picked it up but as they say beggars cant be chosers.
H H
Has everybody watched this?
http://www.youtube.com/tglurgan
The Honest Cover up..
‘If Sevco sell and leaseback the stadium does that mean they are no longer responsible for repairs and maintenance costs?”
—————————————–
Normally a full insuring and repairing lease would be adopted with the tenant being responsible for ongoing maintenance and repair after taking possession in an “agreeable” condition ..which may be where a problem might occur in defining that. HH
.
We often Discuss different Religions on CQN..
Sometimes l think People should Loose the Right to Religion..Never mind freedom..No Matter what Religion they are..read below..
WARNING..Graphic text on Child Murder..
http://www.smh.com.au/queensland/babykilling-butcher-wins-compensation-over-enforced-vegetarian-diet-20130815-2ryb7.html
Summa
The Battered Bunnet
Collective noun might be nest as they are all snakes
Looks like Jackson Irvine is off to Kilmarnock on loan – http://t.co/RUTGE60sZO
timaloy29
13:54 on 15 August, 2013.
If craigy holds the deeds as has been said…he leases it to ticketus and they will eventually get their money back.
Ticketus were never going to walk from that debt.
As for Charlie, he’s already made plenty and will walk away with a nice share settlement.
Only losers is the mug huns…what’s not to like?
Scottish giants Celtic have moved to snap up the services of Schalke’s Finnish striker Teemu Pukki, but Die Kongsblauen have rebuffed their bid.
Pukki’s position in the starting line-up has been thrown into major doubt after the Veltins Arena outfit brought in Hungarian goalpoacher Adam Szalai from Mainz.
Indeed, Pukki already found it hard to get first team football without the ex-Mainz player, having only made two league starts for Schalke last term.
Now, the Finnish striker is yet to step on to the pitch for manager Jens Keller, having been benched for their first round German Cup match against Nottingen and excluded entirely from the teamsheet in the league match against Hamburg during the weekend.
No other offers, much less concrete interest, in Pukki is present at the moment and it remains to be seen whether manager Neil Lennon will launch a second bid for the striker.
Pukki’s time with the Gelsenkirchen-based Schalke is soon to be up either way, with his contract set to expire at the end of the current campaign.
Just the way i see it panning out…then again, i’m sure the smsm will paint a totally different picture to try and subdue the huns hoardes.
Even thems are catching on now though.
That’s the most enjoyable part of the whole farce;-)))
timaloy29.
Leases= sells. Ticketus will then lease it.
Paul67
Great work and nice balance on leaders- thanks for continuing to keep us up to date on this subject – the MsM never will…
If you stop to throw stones at every barking dog you will never reach your destinationCSC
@sipsini
That sounds good news to me.
Yorkbhoy @ 1330
I’ll +1 that mate.
okay just for me, cos Im thick
who is the buyer and who is the seller
ie
who is buying the park etc
who is selling the park etc
probably stupid questions , I know…
Anyone near derry ? Get urself in, town buzzing with the fleadh apparnty. All bars packed out and music on everyone.
Gutted im missing it.
Gary og playing nerve centre on sunday night. Be a good night .
sipsini
Aye, that about sums things up
Hail, Hail to the spivs.
HH