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.
[calameo code=00039017126b6a648d717 lang=en page=128 hidelinks=1 width=100% height=500]
1,203 Comments- Pages:
- «
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- ...
- 32
- »
PUKKI http://www.youtube.com/watch?v=u9yWGbH3ttY&list=TL-X9FsGO2UPQ
Boy knows where the goals are…against high quality opposition.
Celtic_First,
No … are they looking to expand? Presumably in East Dunbartonshire rather than around Ibrox I would assume …
Dexter-Bang on,fiddling while Rome burns.
Paul:
Very good piece indeed, and all the more impressive or being so precise.
It’s the copy editor in me, but:
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.
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.
£7.285m + £6.9m = £14.185m
So actual cash into the business will be £8.785m – yes?
Or am I missing something that adds up to £350,000?
And … Contemptuous is what we feel about this gang of pirates, contemptible is what their antics look like to any objective viewer.
So der hun will be going from Lodgers to Ludgers?
Have we sold the goalie yet?……
coatbridge paper bhoy, ha! Like it.
praecepta, indeed.
twists n turns, exactly.
Dexter, because I have news. This has become a live issue (again) recently, for months beforehand focus was very much on Celtic, and will return to Celtic soon……..
Chill, you’ll enjoy your August.
Parkheadcumsalford, hmmmm.
deliasmith, I’ll check…….
79 30 goals in 6 years shows what sort if striker pukki is. Ie a non goal scoring forward
Have we not had a belly full of them :(
Henke @GlasgowsGreen 4h
Aberdeen expecting Pittodrie to be sold out for the first time in 6 years on Saturday.
Armageddon !!
Do we know if Imran is entitled to his 5% of this deal? ;-)
Let’s just hope this goes through!
An invisible man married an invisible woman. The kids were nothing to look at either.
Paul67
Hopefully Ahmed gets his 5% on this deal
wah wah wah : > )
Murray actually attempted a buy and leaseback scam. I remember he stuck his toe (metaphorically speaking) in the water with an article in the DR, I think Chuck Dung penned it, it bombed with the ‘Loyal’.
They are quite attached to their shoe box of a midden.
Pukki
https://www.youtube.com/watch?v=K_tKkCkOt9Q
To be fair, Scotland needs 2 new supermarkets more than it needs zombie and mini zombie football facilities. Think of the demand for jelly and ice cream that the two new supermarkets will satisfy.
greendreamz
That video clip is the answer Sydney Tim is looking for!
We have a New Number 7 Teemu Pukki…………who is Number 8 on the list…..?
jquinn67
Ok I accept 2nd place.
Paul67,
Whatever happened to CELTIC Quick News.
Affairs over South side are very amusing but this is a Celtic site after all so let’s hear it or the champions first and foremost please.
Then we can laugh at the events at Poundland.
.
Happy Birthday The Hoops..110 Years Young..
110 Years to The Day when We first Adorned The Hoops..
So..
Lets talk about Rangers..Oh Dear..But it Sells Errrmmm?
Summa
Paul – your numbers are wrong.
7.285m + 6.9m is 9.185m (sale + loan)
15% of 6.9m is 1.035m.
The rent plus interest figure though (2.835 m) is correct.
So the ‘ludge’ goers are soon to be ‘lodgers’ too!
Ludgers and lodgers!
Hail Hail
Starryhope
And now for a header into the cesspit ((c) George Orwell).
How will the new PR team spin this?
Three years with no rent payable – a triumph! Ibrox Park for £10m in 2016, with Champions League crowds every year – a bargain! Murray park a goner – those sand dunes are still there, aren’t they?
Paul67
Will be interesting to see how a Planning App pans out at Auchenhowie (previously noted to be on a flood-plane) – however HMGov have relaxed many legislation processes. Wonder how the SNP and East D handle this?
Correction first line should read 7.285 plus 6.9 is 14.185
If rumours are to be believed Ibrokes has its own fully kitted out masonic ludge housed within its bowels. Will there be a separate rent for use of said ludge ?
79. Nice goal. But he is not a goal scorer Indeed that was his best season with 13. Wow
Paul67
That article last October has been one of favourites. I have kep it constantly in mind when the zombies have talked being at the top of the pile again.
Mon The Spivs!
Sydney Tim
If he’s fit, I would be happy to get him. I would guess that Finbog and him are roughly equal. You never know, of course. But you are right that we should go for proven goalscorers. We have signed too many non-scoring strikers.
BIGbones8867
ctrl-R
deliasmith 12:54
That’s what I was getting as well.
It’s good that they’re losing their assets, it means they’ll never be able to recover (well, without huge investment). It also means they’re at death’s door again but this might save them, albeit limit them to always being a Hearts sized club.
Still annoyed that they’re able to sell off assets that they shouldn’t have in the first place.
Paul67, Im struggling to understand the play here. Who would be the buyer? and who would be the seller? Im struggling to understand why so many players invested money into the IPO unless they were investing into ‘the buyer’ in your story ie RIFC… a rather good investment if you ask me and would explain the ability to raise significant sums from investors particularly pension funds who would appreciate a steady return over many decades…
but if ‘the buyer’ still has to be found and any cash received as a result is used for working capital then….what a shocking investment by institntional investors into RIFC..!
Paul67
So Rangers have abandoned all pretensions to develop their own and sell on at a profit?
A couple of million a year should eat into their playing wage budget, but we know they are not against creative ways of circumveting this handicap.
Of course competing Scottish clubs would have nothing to worry about if the SFA would not only apply FFP principles but demonstrate they are applying them.
This is why I go on about cleaning out the SFA and am perplexed that Celtic are not pushing this point as it is pretty self evident on whose behalf the SFA have been working from 2000 in recent history.
A club whose fan base demand success as a condition of support but with limited income streams to meet that demand and with no apparent desire to follow the sustainable model of their main rivals are simply going to do what they have always done – cheat and cheat with the help of their friends at the SFA.
An SFA who signed up to UEFA FFP standards yet at the first time of complying instead ditched said standards to keep Rangers alive.
The same guys are still running the SFA show and we hear nothing, absolutely nothing about applying licensing standards without fear or favour.
This is not an anti Rangers stance for which we might face false accusations from msm, this is a Scottish football issue affecting all clubs and without some admission from the SFA they got matters seriously wrong since 2000 ( dont tell me that no one there had not heard of dodgy tax practice at Rangers) supporters in Scotland are being asked to bend over the barrel once more and take more of the same.
Not this Tim. I have too much self respect.
Given that they will have to pay to use Ibrox, does that mean we can call them them Rent Boys?
Starryhope
praecepta
a good point
was there not a story about the adjacent rugby club selling to housing developers, then it stopped for some reason, maybe the credit crunch
almost certainly we can expect a masonic approval there granting planning permission
dexter
12:37 on 15 August, 2013
Dooooh ……. I see that cloud is continuing to hover over your head…….. The light has been shining on Celtic since our inception, and very brightly recently…..
I think Mr Pukki would be a very welcome addition to our squad.
Could be a nice piece of business. Anybody know how much?
In 2011 11 goals and 8 assists in 18 league appearances
for HKJ brought him to the attention of Schalke
Not exactly prolific, but not bad -involved in a goal a game.
There’s some talent there.
Granted, doesn’t strike me as immediate 30 goal a season predator.
A certain other transfer target does…
Great article Paul.
Looking forward to it breaking on mainstream. ….long wait possibility.
Is this the real reason for Rangers International FC having a board meeting on Tuesday?
Have all our players returned fully fit from last nights games? Must say pleasantly pleased with Scotland’s last two performances. …the difference having a decent manager.
Roll on Saturday and Aberdeen.
Even if we sign someone now they won’t play in Kazakhstan.
Hail hail