Sale and leaseback of Ibrox, Murray Park, Heads of Terms


I have a Heads of Terms document for the sale and leaseback of Ibrox, Murray Park and the Albion Car Park.

The purchase price for all three assets is £7.285m.  In addition to this there is a £6.9m loan provision with 15% interest payable monthly (£985.5k annually).  Initial rent for all three properties is £1.8m.  The 20-year lease provides for upwards-only reviews every five years by either 2% p.a. or RPI, whatever is greater (so assuming RPI is less than 2% each year, after five years, rent would be £1.987m).

Annual costs for rent and interest would be £2.835m.  Current season ticket sales are reported to be approximately 36,000 with a standard adult price of £286, income net of vat will be around £8.5m.

Although the top line figure for both sale and loan is £13.835, “the initial payment will be less 3 years rent [£5.4m] to compensate for the lack of guarantee covering the rental payments”, so monies paid would be £8.435m as the first three years rent is deducted from the total.

Crucially, rent is to be securitised against ticket receipts and the new landlord is to be granted “first charge on the season tickets”, so, just as Craig Whyte planned with Rangers, Sports Direct FC would collect ticket money before passing it on to the security holder.

If the buyer attains planning permission for residential properties at Murray Park, a provision releases the seller from having to repay the £6.55m loan and cancels future interest payments.  This speculative clause would release the club from punitive interest repayments but would require them to find a reasonably priced ash park to train on.  Perhaps the Albion Car and Training Park.

“The tenant” will be able to buyback the stadium.  In year one the price would be £10m (they would still owe the £6.55m loan).  The set price increases by 12% p.a. for 10 years, so the year-10 price would be £27.7m.  Thereafter “price will revert to Market Value but will not be less than £20m”.  The market value of Celtic Park is around £50m.  There is no buyback provision for Murray Park or the Albion Car Park.

The deal is on the table but will not be signed before the share issue, or if “the tenant” wins the Euromillions Jackpot (that’s not a euphemism for Champions League money, I mean the actual lottery), or finds some magic beans.

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  1. South Of Tunis on

    Tax avoidance /tax evasion is not a rare thing in Italy .



    Government produced figures show that the average lawyer earned an average of 16 k euros in 2011.



    Same documents show that @ 394,000 people in Italy admit to earning more than 100K euros in 2011 .

  2. God Bless Wee Oscar.



    17th November get along to the race night CQN’rs, greet and meet other CQN’rs, have a few beers and most importantly Raise some money for our wee Celtic Warrior.




  3. Dontbrattbakkinanger on

    Ole Bomber Brown will be turnin’ into the wind and settin’ course for CQN




  4. I was 3rd does that mean I am on the Podium, or is the Podium reserved for the first guy in. Would one not feel a bit of an idiot to post 1st but to find some guy beat you to the punch by a mili second. A rather strange obsession overall.

  5. Dynamite story!!! We knew there had to be a plan – this is it! So the initial investors will have their money back within months if this goes ahead.



    In addition, Gratuitous Alienation of assets confirmed again.



    Great work Paul67.







  6. And only the Truth can set you free.



    It seems like sevcovians can’t handle the Truth, especially those masquerading as journalists.

  7. Silver City 1888 on

    Wonder how long before a tabloid exclusively reveals that to the nation. Off to look up “heads of terms.”

  8. tommytwiststommyturns on

    Paul – was there not a rumour about West of Scotland Rugby Club swapping the land their ground is on for Murray Park, as housing could be built on that land, unlike Murray Park?




  9. Pardon my supidity, but does that mean that the £17,000,000 pledged so far by the most wonderful supporters who have ever threatened their own Chief Executive, is like throwing peanuts to an elephant?



    When do Tesco start bulldozing?

  10. philvisreturns on

    South Of Tunis – It’s remarkable how swiftly Berlusconi’s fortunes changed for the worse after he suggested Italy might leave the Euro. (thumbsup)

  11. Paul, I trust you don’t do wind-ups, when I read that article first and saw the bit about the Car/Training Park and the Lottery and Magic Beans bit, I actually thought you were having a laugh. As no-one else is laughing I’m now thinking this is for real.

  12. I have a mental picture of Chuck Green trying to carry water with his hands as he tries to move the share issue along.


    Every day brings another pesky story for him to deal with.:))


    Keep up the pressure Paul.

  13. Dobbo


    16:38 on 26 October, 2012


    Some FF reaction would be much appreciated…



    the usual abuse and burying heads in sand, its all they know

  14. Wonder if MSM will call for mcCoists head



    Seeing as its almost inconcievable that he did n’t know



    Who the 3 man panel was when he demanded that their names be made public



    Intimidation of the highest order and incitement to say the least




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