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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All do-able if the money is right Belfastbhoy!
To be honest, it’s not so much the kids parties that gets me….it’s the guys in the boardroom – especially “Tiger”……
KevinBridgesCSC
Advice to Peter Lawwell. Forget about signing a big player. Spend the money to buy Ibrox, Murray Park and the Car Park. Then we really own them and they pay us through the nose as well. Tee! Hee!
Tully 57,
Just paint a happy smily face on yourself,and the other creditors will assume you have been paid.Just watch them all make a beeline for “The Big Hoose”.
What a wheeze!!!!!.
Theyre no changing drinks sponsors again ?
‘TENANTS’
I think the problem for us to get value for money for any proposed signing is that clubs throughout Europe will know full well we have taken in £20 million in transfer fees.They will suddenly want top money for anyone we are interested in.H.H.
Tully, I was more thinking you could do a special offer outside the ground they’ll be rentin on a too rain later on day :O)
if TENATNS dont want to sponsor their rag can we get Renton Council to do something :O)
Jackson Irvine was our best outfield
Player against Liverpool.
Our best player was Zaluska.
Seems a sound opportunity for the Bhoy to gain experience.
TT
Ah wid go fur .. Billy Sharp.
He wid dae.
Garry, Is a Clone of Billy..
The “Rifle” .. fur Me.
Kojo
Still, Laughin’
So the Wikipedia scouts are getting upset because Pukki’s number column isn’t as good as Finn’s?
I’m sure the club will be negotiating hard for a striker and it may come good or not. Personally, I think 5 million for a striker is a bit too much risk for us.
Let’s not pretend we have seen enough of the Iceman to be able to say its a sure thing.
Tiny Tim
In Ma Opinion
Fisher, Edged Irvine.
Fisher wid be ma Pick.. tae Tak over far Victor.
The Kid is That Good..
In Ma Opinion,of Course.
Kojo
Still,Laughin’
If what Paul says is true but RIFC renege on the repayment side of things anyone think their friends over at Hampdump might give them a good rent deal ?
once again we are focusing on that mob. The lead article is pretty much a lot of assumption and guesswork, is it not? A” heads of terms” is pretty much a proposal ,plan or an agenda not a contract or bill of sale.
If this was doing the rounds since last year, what`s so special about it now? They were cash strapped then as now, ignore them ,we have bigger fish to fry.
Paul67
I don’t see the sale and leaseback happening .
It would be quite marvellous if it did.
The leaking of this could also help increase the desire for new buyers to up what they are offering per share, to help stop a sale and leaseback.
I want Charlie to get 70p per share , not 30p.
This leaves less money for new investors to support Rangers with.
I want Charlie to walk away with tens of millions.
TT
Bawsman
I think 100 are needed but I can only imagine most are unsighted on the depths of skulldugery at play.
When Rangers response to an SFA draft submitted to Rangers to approve ( I mean what was that about? ) is consternation and an invite to Regan and Ogilvie to discuss strategy over dinner before Xmas then that tells the world they were in cahoots.
A dinner btw were CW’s lawyers claim the SFA had given assurances to CW they had no problem deeming him a fit and proper person.
The same CW who told porkies to SFA about a £500k payment to the wee tax bill in Sept 2011 to clear the final UEFA licence hurdle ( Art 67) although by then karma in the shape of Malmo and Maribor had delivered football justice.
The problem is getting the facts ( because of their provenance) out there although I see Phil Mac has made a start by identifying the cover up in LNS commissioning of the illegal DOS payents to Ronald de Boer from 2000 to 2003 before switching him to the yet to be decided legality of loan based EBTs half way through that title winning season.
LNS was not asked to rule on the DOS payments btw, only loan based EBTs. Given no other clubs could use the DOS payment regime ( which involved side letters that MIH denied on Rangers behalf existed) the 2003 title WAS won by unfair means. An FTT and later UTT confirmed it so.
Why was the difference not identified? Too complicated or too damning in terms of Rangers intent on switching from share based DOS to loan based EBTs?
When MIH went through personal files in 2005 of De Boer, Flo and Moore did no one at Rangers ( Campbell Ogilvie who also had a position at the SFA for example, know it was being done and why?
Come on, the greatest administrator in the world? What are the chances?
Maybe he should be asked. Maybe it was done behind his back. Maybe he had no idea what a side letter was or why the files at his club were being examined by MIH.
timaloy29
Surely you must concede that a players strike rate is as good an indication
as to how many goals he may score as you can get?
jmccormick
15:14 on
15 August, 2013
‘If this was doing the rounds since last year, what`s so special about it now? They were cash strapped then as now’
###########
They were strapped for cash back then and raised money by having a share issue.
If they’re strapped for cash now, realistically they no longer have the option of going to market, so how else to raise cash?
That’s maybe why sale and leaseback is on the radar screen once again.
Ohmni
It’s an indicator but not the be all and end all. Otherwise management would be easy.
There are a lot more numbers that go into player analysis than goals and none of us have that info available. The club will.
Comparing a lad playing Holland, to a lad playing in Finland and Germany is a bit unfair as there are a lot of variables.
It might turn out that they are both diddies or both quality. Either way, I have seen little and cannot comment on the value of a player I have not seen, compared to the prices quoted by the Daily Ranger.
I also don’t believe we need to worry to much about the Kazakh’s. I believe we can go out there and get a clean sheet. That’s all we need in the first leg.
Jmcormick
I can well appreciate that what goes on at that mob is of lesser interest than who Celtic should sign.
But what goes on at that mob and more important what is permitted to go on at that mob, if unchallenged or ignored allows that mob an advantage that negates the honesty no number of CFs are going to fix over time.
I only want to watch Celtic play in a league where honesty, fairness and sporting merit decide the winners.
That is not to deflect from those issues with a short life span, I want as good a team on the park as the next man, but I want that team to play on a level field each week, not uphill.
That is the relevance of goings on over there to over here.
Dobbo, they either could not afford him or Herenveen have agreed a deal with another club. Could it be Nike Friday after all? Maybe Pikku is the smokescreen.
For those who don’t think he fits our signing policy because of price, maybe that is the new price in todays market for a Hooper type three years after his signing.
C’mon Neil and Pedro get it done!
HH
gsu
So to cut a long story short what is being said in this article is that Sevco have yet another millstone around their neck to keep them from competing with the top 6 in the SPFL, never mind the Top Club in Scotland.
That’ll do for me.
The rest is detail.
Hi Paul67,
Interesting follow-up, Charles Green said he could bring £10M into SevCo, with this deal he could be almost there.
It would certainly give RFC PLC the funds to make it till next year.
Allowing Charles and Chums some leyway to chip-in & ship-out….nice.
So guess 2014, will be the time for the real Rangersmen to come to the fore, they will meed to show more acumen than their predessors, thats for sure.
Auldheid-With respect,the nonsense that has been going on at Sevco has been “unchallenged”.It is merely highlighted in blogs such as this,the MSM have no intention of digging in to anything to do with them.The lapdogs current agenda is to rubbish Green and Ahmed for their own means,possibly Murray/McColl.As long as is with the internet bampots,they do not worry a jot.HH
A lot of people are going on about value…
Hooper
We sold Hooper for £5m+ with only a year left on his contract.
His goals to games ratio for us (a dominant club in lowly Scottish football) was 0.59 or a goal every 1.68 games. He is 25. For his previous club (mid-table) he managed an impressive 0.52 or a goal every 1.9 games in a similar quality league (only poorer team).
Finnbogason
We really don’t know how much they want but he’s still got 2 years on his contract, is improving and we THINK would cost £5m.
His goals to game ratio for Heerenveen is a highly impressive 0.89 or a goal every 1.13 games. He scored half their league goals for them last season, a mid-table club in a better league scoring 5 more league goals than Hooper in a game less. At his previous club his goal ratio was 0.59 or a goal every 1.69 games.
£5m might not seem “value” because we’ve paid less before. But compared to Hooper it would be more than value.
Sorry if that’s “Wikipedia” but stats speak a lot about a player. A goalscorer is a goalscorer, a non-goalscorer is a non-goalscorer.
Auldheid
15:31 on 15 August, 2013
Jmcormick
I can well appreciate that what goes on at that mob is of lesser interest than who Celtic should sign.
But what goes on at that mob and more important what is permitted to go on at that mob, if unchallenged or ignored allows that mob an advantage that negates the honesty no number of CFs are going to fix over time.
I only want to watch Celtic play in a league where honesty, fairness and sporting merit decide the winners.
That is not to deflect from those issues with a short life span, I want as good a team on the park as the next man, but I want that team to play on a level field each week, not uphill.
That is the relevance of goings on over there to over here.
================================================
What he said!!!
Plus I think we are more than capable of considering, discussing and pursuing more than one thing at a time. They are not mutually exclusive, it ain’t either or and before the days out we could have all kinds of discussions on here – religion, politics, where the Gazebo crew are going drinking this weekend…. there might even be a quiz…. and whisper it but someone might bring up Section 111………..
and in the meantime we all have real lives where we do other stuff like work, eat, be part of a family……. most of it with no reference to Celtic.
We are the original multi taskers Celtic Supporters Group.
TinyTim
15:10 on 15 August, 2013
Jackson Irvine was our best outfield
Player against Liverpool.
Our best player was Zaluska.
Seems a sound opportunity for the Bhoy to gain experience.
TT
Totally agree with that summation, Jackson will be back in January with loads more experience, Good Luck Jackson!
I think people forget just how good a keeper Lukaz is
HH
gsu
Hang the DJ
Former DJ Dave Lee Travis has been charged with 11 counts of indecent assault and one count of sexual assault, the CPS have said.
Timaloy
Can’t disagree with your view there.
Don’t quite share your confidence about the Kazakhs away,
I’m still haunted by the Elfsborg performance.
Given that we are settling for the plastic pitch excuse
for that sorry performance, the idea of a long journey
out to another does worry me.
On paper a Celtic win.
On plastic?
A thread on Paul’s scoop has just been pulled on Follow Follow. This must have struck a nerve!
Iceland Value Sausages sure are good value
… but my kids wont eat them.
… so maybe not such a bargain.
ernie lynch
I concede your point, you are spot on. I had forgotten all about their share issue flop, such is my interest in the matters over there. I still think they will be an irrelevance in years to come. AlwaysdreamingCSC
Auldheid
Again I admire your stance and agree with your point. I do not think that whoever ends up as landlord of the Bigotdome compares with the financial doping you are clearly, and very forcefully making your case about. If Charlie , Craigie and his gang strip the lining from the pockets of the eejits who allow it to happen, that`s fine by me. The target rich environment you are aiming at will possibly expose the collusion of SDM and his freinds in high places, Dallasgate , then we move onto the acceptance of CW as a “fit and proper person”, the warm welcome from the SFA and media and I wish you more power to your elbow.
Hail! Hail!
Over 80% of the contributions on this blog today are about another club and another former club.
Surely there is enough going on (or, more to the point, not going on) at Celtic Park to warrant our attention;
Any signings or contract extensions (eg JL) yet??
Team news for Aberdeen v CELTIC on Saturday?
Developments in the GB saga?
We missed the (transfer) deadline for CELTIC v Elfsborg
We missed the deadline for Elfsborg v CELTIC
We now, apparently, will miss the deadline for Shakter Karagandy v CELTIC, as the team and management will be away from Saturday until mid next week
We knew of Hooper and Vic’s departures approximately SIX MONTHS AGO
#stoptakingusforfools
HH to theGB
RobertTressell
“Plus I think we are more than capable of considering, discussing and pursuing more than one thing at a time”
Good point , I think we should be discussing a playmaker as well as a goalscorer, there you go …two for the price of one..
Certainly beats calling each other Huns all day.
Cheers.
Greensideup is also Neil Lennon
I agree. Our “par” shopping price has been around £2-3m. With our CL run and profit on player sales our “par” shopping price can increase to £2-6m – providing it still ovvers value via performances and future sell-on.
Malone Bhoy-Another stat is we bought Hooper for £1.6mil and sold him for £5.25 mil.a profit of £3.65 mil,less than our bid for Finboggason.
RobertTressell
15:40 on 15 August, 2013
We are the original multi taskers Celtic Supporters Group.
Love it!
I been telling my wife for years it(CQN) is a club whose aim is to be more productive
HH
gsu
Dexter
15:50 on 15 August, 2013
Pay attention Dexter
gsu
Why do people think its good to live season to season? If we make profit we apparently HAVE to spend it.