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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gsu
???
If this is true….FANtastic ………!!!!!!!!!!!!!!!!
“@celticrumours: Hearing Independent person to assess health & safety of lateral movement in GB section. Section to remain open”
“@celticrumours: Possibility of GB getting different coloured SB to control overcrowding. Sorry if it’s old news. Been busy.”
Yeah pay attention Dexter, and don’t ask any akward Celtic related questions………
I have to admit, I am worried by the lack of movement on Joe’s contract
Dexter
There’s football on only twice a week. The rest of the time there are pages and pages and pages and…. etc of stuff about the GB, The board/bored, Finnbogason, Doyle, Lawell, Balde.
Plus there is loads of stuff about The Rangers because they are a 24/7 comedy shambles.
!!Bada Bing!! at 15.58
;)
HH to the GB
jmccormick,
Must admit I don’t a see a great need for a playmaker.
Especially with Commons in the form he’s in.
Wouldn’t say no, obviously.
Unless this detracts from funds for a certain other position.
Don’t think we need another CB either,
I might want to reassess this view at a later stage though…
Crying out for a Centre forward. Or Two.
Plain as day. We are going to create chances all day long,
But who is going to tuck them away?
Don’t know much about the technicalities in Paul 67’s article but ,in laymans terms, I’d say they are gubbed.
It’s friggin Thursday, is there no mention of the squad for Saturday? Recoveries from injuries?
I’d be happy to see 2 strikers come in if its the end of Stokes
Thank you Paul67
On your info I have been telling many that once the spivs had eat up all the money in the pot they would then lease the remaining assets back to whoever for 20yr to start with.
Do you think they with D King at the helm will just have to admit defeat and start a third rankers away from Ipox with no history to escape the spivs?(how good does that sound)
Ambrose wins the 16-00 @Newbury ….8/1
Malarkey
16:03 on
15 August, 2013
Dexter
There’s football on only twice a week. The rest of the time there are pages and pages and pages and…. etc of stuff about the GB, The board/bored, Finnbogason, Doyle, Lawell, Balde.
Plus there is loads of stuff about The Rangers because they are a 24/7 comedy shambles.
I hear what you are saying, but each day we are creating ‘pages and pages’ about the “Finnbogason, Doyle, Lawell, Balde” matters, is a day lost in preparation for a CL tie and potential group stage after that. Each day is a day closer to UNNECESSARY risk. We have already reached (it would appear on this blog) a grudging acceptance that we will not have replaced Vic or Gary88 for the Champions League winner takes all against Shakter. It seems to me that the wait-and-see/fingers crossed/it’ll be all right on the night approach of the PLC has seeped into the sub-conscience of many a contributor to this site.
#getthefingerout
HH to the GB
Bada Bing
The profit on a player is the the price recieved minus the price paid plus wages spent so Hooper didn’t reap quite the profit you suggest…
Although on the other hand some value should be placed on Hooper’s contribution to CL and subsequent financial impact…on that analysis he mabe reaped more profit than you suggest.
Either way Celtic will only buy because it makes sense going forward – they don’t NEED to buy and certainly not at inflated prices. Personally I don’t think it matters who we bring in – realistically we will come 3rd or 4th in any group. It is unlikely we can replicate last year’s achievement even if we but 3 x £5m players..The standard of player/team required to consistently progress in CL is way beyond Celtic while they remain in Scotland.
desertbhoy
16:07 on
15 August, 2013
It’s friggin Thursday, is there no mention of the squad for Saturday? Recoveries from injuries?
___________________________
Quite.
You would almost think you’re on the wrong site. Maybe Follow Follow has our team news.
Cannae understand any CFC fan who doesn`t take great delight in the shambles that are Sevco and their daily comedy offering
i have waited all my football supporting life for them to be in this situiation
i` am fully intent upon enjoying every last min of it
besides which ….it gives you all a break from my moaning
I would prefer to read about Celtic signings…. but the postings about Rangers then Sevco have probably stopped them from getting away with a lot more than they did…
Back to idle transfer speculation… I heard Robbie Keane was looking at houses in Glasgow…
When David Murray ran the circus at Ibrox, it was as clear as day how things would play out. His was an orthodox business collapse, and was predictable and predicted from 2008 with a fair degree of accuracy. Craig Whyte was merely the fool who thought he could spin a dollar from the wreckage. In all other respects, the outcome was inevitable.
With Spivco, matters are entirely different. We know neither the identity of the key players nor their end game. It is a soap opera. Characters enter stage left, deliver a few choice lines of the script, then disappear for a while, never giving away the ending.
There is no good faith. Only good entertainment. The series will run for some time yet.
!!Bada Bing!!
15:52
How much would we have got had he had 2 or 3 years left on his contract? I look at players with a perspective that they’ll likely be sold in 2-3 years. AF would be no different. We might double our money, we might break even but I doubt we’d make loss. So £5m is not really £5m if we sell him in a couple of years. Might not be as profitable as Hooper was but sometimes you have to pay for the job.
….PFayr
16:14 on
15 August, 2013
Cannae understand any CFC fan who doesn`t take great delight in the shambles that are Sevco and their daily comedy offering
I agree- but an RTC or similar site would be the more appropriate vehicle.
Further, surely Sat’s game and the transfer non-eventing is more pressing for us?
HH to the GB
Blindlemonchitlin
Why does that not surprise me.
If they had listened to Timmy in the first place, maybes they wouldn’t be in the bother they are.
The seem to take great delight in shooting the messenger, to hell with what he is saying.
Couldn’t happen to a more deserving bunch.
HH
Dexter
15:57 on 15 August, 2013
Loads of transfer/signing talk :)
gsu
In Dublin terminal2 just now. Pretty grand structure cool functional. Anyone know how much it cost.
On the wall a story board of construction timeline.
There was 300000 cubic metres of soil removed from the site.
I think wow that’s a lot.
This is the equivalent of 8
Happy to see Irvine going out on loan togain regular games.
I saw him against L’pool and his class stood out, amongst other good players.
I would have it written into every young player’s contract that they go out on loan,like as a placement for experience.
That way, no boy would feel as if he is being edged out and the taste of first team football and how other clubs operate, should make them desperate to succeed at CP?
“Ibrox for sale or rent.”
PFayr
99.99999999r% that you have two tickets for Pittodrie.
Greensideup is also Neil Lennon
16:17 on
15 August, 2013
Dexter
15:57 on 15 August, 2013
Loads of transfer/signing talk :)
gsu
______________________
the majority on here today is about another club and another former club
#keepaneyeontheball
HH to the GB
For you Dexter,
I don’t think Broony will play against the sheep on Saturday after playing 90 mins for Scotland
gsu
Only sixteen days to nanny out.
Icken phone.
That’s the equivalent of 800 million pints of Guinness.
A unique alternative to the metric system. Maybe that’s not a lot at all
To be fair, Dexter.
Their players earn a fraction of what ours do and if Stokes, Balde, Forrest, Derk, Commons, Samaras and Watt don’t have a goal or two between them then they have no business being at Celtic.
I’m not going to buy the notion that we need a 5m striker to beat a team with that budget.
Anything less than qualification will be a massive failure on the 20+ senior pro’s at the club
gsu
Cheers.
No need to mention Scotland ;)
Good posts Dexter.keep em coming !
Have we sold the goalie yet? HH
….pfayr
16:11 on 15 August, 2013
Ambrose wins the 16-00 @Newbury ….8/1
********
Good old Efe.
Did he do his back flips?
dexter
i am very inerested in Saturday`s game …there is little to discuss of a Thusday as all the squad (barring the Dych bhoys) are fit …and the manager doesn`t have many options
as for Tuesday…i have been banging on about signings for this game since we beat elfsborg
both of the above are undoubtedly more important that the Hun plight …but nowhere near as funny
HH
HT..on..schools out! :)
Johann
I feel this year, more than any other, I’m going to need my CQN fix after the ringing of the bell!!! :-)
cultsbhoy-thanks for reply.I assume you are happy not to add to the squad,and go in to the Europa League? You are in the minority i would suggest.If Celtic stop trying to improve i will stop going.As it stands,we are coming out of a Transfer Window weaker than when it opened.Your point about playing in another league is pie in the sky IMO.Never mind,the balance sheet looks good though.HH
….PFayr
16:23 on 15 August, 2013
Both Virgil (was posted earlier from a tweet) and Derk are fit to play this weekend
HH
gsu