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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TBJ
He certainly knows when to get out. hehehe
Weefra HH
67heaven
“2 tin hats” … never been afraid of a good debate/friendly banter/constructive criticism …in fact, that is why I come on CQN…
“you little expert” …. ? not sure I get the reference.
HH
Barrowbhoy
Lived in shawlands for a while… behind the mulberry / ivory. … bay horse was more hunnish but tbh it really is a decent area.
Weefra- its a moral dilemma- I got it for nothing more than I already pay- so should I do the right thing and tell them to stuff the Newco promotion- or just not watch them and take the free(ish) footie?
Living- its not been publicised yet- but its from a good source
Weefra
Hes a plank…fits in with his mate JOHN MACKAY … Pair of wallopers
DJBEE 18:10 on 15 August, 2013
“Are this new club in the SPFL?”
They are. League One of the SPFL.
Marrakesh- you are probably nearer the truth than me-I thought they drank in there- or at least some of them told me they did. I always thought it was a little too upmarket
To those of the opinion that we shouldn’t be spending £5M on a single player, I would proffer that this represents about the equivalent of what we paid for Henrik Larsson in 1997, and we didn’t exactly break the bank with that signing.
A look at the world record transfer fees on Wikipedia reveals that over virtually any 16 year period since WW2 the transfer value increases between about 6 and 10 fold. So a £5M fee now would on that basis equate to a fee in the region of £500k – £850k in 1997.
Given that back then Larsson was being sold by his previous club as a bit of a misfit who couldn’t command a guaranteed 90-minute appearance in his favoured position, and who had delivered a modest return of about a goal every four games, we weren’t exactly paying top dollar for him at £650k. So taking the mid-point on the aforementioned transfer fee increments over 16 years, this would give a value of £5.2M in today’s market for a player of the anticipated calibre of Larsson when he joined Celtic… which was a reasonable player with the potential to improve and deliver a benefit to the team.
Finnbogason at Heerenveen has demonstrated that he is worthy of being considered as their prize asset, and his goal return is far superior to Larsson at Feyenoord, in the same league. So we could reasonably expect that he would command a significantly higher fee and be more likely to justify that.
At the upper end of the transfer fee inflation scale Larsson’s fee would translate to around £6.5M (c. €7.6M), so why don’t we just offer Heerenveen €7.5M and have done with it.
With him being from northern Europe, and having seen plenty footage showcasing his abilities, I am pretty confident that he would be a resounding success at Celtic, and we would be having £10M+ carrots dangled in front of us within a couple of years.
As an aside, did you know that Falkirk once doubled the then world record transfer fee for a football player to sign Syd Puddefoot (also a cricketer!) from West Ham United?
stairheedrammy
Nae contest kiddo. Enjoy. :))
Weefra HH
John McKay only ever wears blue ties and Catrina on BBC has a liking for bhunnish blue as well- its a sign I tell you
Ive barred Snyde from my house but jeezus, there is nothing worse than listening to the msm’s worst liar Jackson on Shortbread….telly oan
TBJ
Gonnie start saying it like it is. Stop covering up your Opinions. Lol
Weefra HH
Barrowbhoy
I can’t vouch for either of those 2 pubs you mentioned, but as has already been posted here, Heraghty’s or Kelly’s at the junction of Pollokshaws Rd. and Allison St are very well known Celtic shops, and being on a main road, it’s a lot easier to get home from there! Why go elsewhere?
HH
Weefra
Humble apologies .. im gonna get a skelf in my erchie from sitting on this fence ;)
BT will assure you… in real life im a quiet wee shrinking violet ;)
Saw a great fight in Kelly’s once- the place was that packed that the 2 groups fighting couldnt swing for each other so the whole pub saw a sway forward and backward as both groups pushed against each other- it was like the tide moving around inside a pub- and it finished with no-one injured
Guy on BBC as an example of obesity dressed top to toe in Newco gear- you couldnt make it up
Rammy
I knew some of the original members of the Sons bus…one being Feargal Sharkey’s cousin.
They moved around pubs but think theyr still going.
The Mulberry was a big tim shop in the 80s. Mostly ex Maggies boys fae Castlemilk.
Marrakesh Express 18:32 on 15 August, 2013
Jacksie fits the profile for employment with BBC Scotland Sport … in so many ways.
Stairheedrammy
Did McNee not get knuckled in Heraghty’s one night?
Mulberry St on Pollokshaws Rd not a sport bar
Nice beers but only has cooncil telly
Male bar staff are Celtic men
Kelly’s better bar – Heraghtys full of phoneys
And another thing – I work with a guy whose son is a mate of Raman
I can assure you all most certainly that Raman is no Sevconian
Unlike Cat Shearer
The Sons of Donegal bus is still going strong.
Meetings etc are held in McNeil’s in Torrisdale St but a fair few of the members drink in the Queens Park Cafe.
I heard the other week that 1 or 2 pubs in the area want the Sons to base themselves in their pub.
They are a thirsty lot! :)
Jee-zoh.
Just read PAUL67’s article.
If this is true,it is the equivalent of having a patient on a life-support machine and ventilator.
There are few recoveries from this.
And meanwhile someone has been robbing the patient’s grave.
Wonderful stuff,they really have been stitched up…..
Marrakesh. … I left celtic park early the day the buns beat us to clinch the league.
Got to the mulberry to catch the scum doing the huddle…. one hun started to mouth off… cue a riot … wisnae me yer honour :)
Greetings Paul67/Great Timlord
My machine has alerted me to your precognition. As you may not be fully aware, Celtic Fc, in the winter of 2014 become the new owners of ‘Murray Park’ and transform it into Scotland’s largest potato field. As you aware, potatoes will become the main form of currency after your worldwide economic collapse. A shrewd piece of business by Timlord Desmond when Celtic Fc end up rich beyond believe in June 2015 when the crop is ready for harvest.
To Infinity & Backwards!!
rotit j
Marrakesh- its Castlemilk bhoys I was thinking about- my brother in law being one wh I’m sure spent a lot of time in there- I know I only ever drank in there chasing nurses from the Vicki
TBJ
AYE RIGHT. Remember and pick them out carefully. :)))
Weefra HH
mike in toronto
18:25 on 15 August, 2013
NFL is a fantastic young manager who has won the hearts of the Celtic Support…
…rammy. Is lateral movement allowed in pub fights?
Good to see the board are now taking their responsibilities a bit more seriously, overcrowding.
Note of caution on our new Dutch winger, I was talking to a Dutch boy during the Elfbourg game and he told me Celtic have paid a lot of money on a player we’re likely to see only four times a season, treatment room star, hope he’s wrong cause the bhoy looked the part from what little I saw in the opening game.
Miki
great to see you posting again, even better to find out you were strong enough to get home, hopefully you’ll be home longer next time, keep battling we’re in your corner.
Hail Hail
Paul,
Thanks for keeping us up to date with the Tribute Act. A few are complaining about your commentary on the comedy show, however, please don’t stop as I enjoy Reading about their suffering.
I can understand some genuinely can’t be bothered reading anything about them any longer. I personally don’t even bother checking their results or pay attention to who their players are etc but I love the comical business side of it. Also, a fair proportion of moaners with regards to this subject will be Zombie infiltrators so don’t be put off from shining the torch of the Tribute Act madness.
Reading about the car crash business dealings of the Tribute Act on here make me laugh and go some way towards healing the pain we all suffered throughout the 90’s. ‘Lest we forget’!
Off oot with the dug- stay safe
The sons leave from Victoria road ,most of them drink in Queens park cafe and McNeills in Torrisdale street
Ta to all for info re. match next week and kind thoughts.
HH!
SSB says we are telling lies if we say we are not missing the corrupt / hate-filled / oldco bigots ….. Hahahahahahahahahahahaha
Any GB members on at the mo. Can you confirm a compromise has been reached with the Celtic Hierarchy? Please.
Weefra HH
j titor
Welcome back or mibbes that should be welcome forwards:o)
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS 18:46 on 15 August, 2013
Jee-zoh.
Just read PAUL67′s article.
If this is true,it is the equivalent of having a patient on a life-support machine and ventilator.
There are few recoveries from this.
And meanwhile someone has been robbing the patient’s grave.
Wonderful stuff,they really have been stitched up…..
————
There’s a film in there somewhere. The kind of thing that used to go straight to video – with three or four surnames boldly placed on the cover in an attempt to lure you in.
“Eastwood, Roorke, Di Niro and Walken.”
But on closer inspection, like Sevco, all is not as it seems … Albert Eastwood, Fred Roorke, Billy Di Niro and Hal Walken.
Miki67
Dont know you or your condition, but sorry to hear you are in hospital. The Karagandy v Celtic is on Tuesday 15.45 ITV4.
KTF