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

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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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787 Comments
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  1. 67Heaven ... I am Neil Lennon..!!.. Ibrox belongs to the creditors on

    tyrehoops

     

     

    22:05 on 26 October, 2012

     

    just watched the full interview on c4 website……compelling stuff

     

     

    surely this must make headlines tomorrow….not

     

     

    >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

     

     

    I’m starting to wonder if the media silence on this subject is born out of fear of zombie threats etc …??

  2. HT – all part of the 1888 family there are quite a few of us!!

     

     

    31003 I would be on to Social Services!!

  3. SoT,

     

    You obviously spend your time in the less trustworthy parts of Italy. In (relatively) honest Ostuni, prices are similar to Catania but you get a receipt for what you’ve paid. Mind you, I didn’t have your experience in my short time in Catania.

     

    Doesn’t everyone in the South of Italy know that it’s NEVER been a proper democracy?

  4. Paul, Another great scoop. You put the MSM lowlifes to shame. Can you imagine how the Record/S.Mail would have treated this if Fergus had tried this stunt?

     

     

    Front page screamer…Paradise Lost…Asset stripper McCann to sell ground to Developers.

     

     

    Tomorrow’s papers….diddly squat.

  5. Chepstow 4.15

     

    Bourne. 6/1

     

    Lump on it.

     

    I don’t have any information, just like BSR.

     

     

    EC67

  6. Celtic_first – thank you!! and if I had one of those hatchets it wouldn’t be a tree I would be hitting right now!!

  7. Googybhoy

     

     

    Last two right

     

     

    SOAL

     

     

    my earlier post re all time EPL top scorers in their respective positions 4-4-2 and Gk

  8. 67Heaven ... I am Neil Lennon..!!.. Ibrox belongs to the creditors on

    o.g.rafferty

     

     

    22:15 on 26 October, 2012

     

     

    Let me tell you, bhoy ……. It’s one beautiful iceberg …….LOL ……..

  9. Just seen an advert for barclays banks new personalised credit card … Send them a pic and thats what your cc looks like

     

     

    I can think of a right few options

  10. good evening cqn

     

    Regarding NFL comment about the bold Bernard and failed coaches that are here,surely he is not pointing the finger at Super Swally,surely not,his record speaks fot itself.

     

    I dont no about East Kilbride but the holiday resort of Balloch loch lomond is very cold tonight.

  11. The Spirit of Arthur Lee on

    ….PFayr

     

     

    Less of yer pish and give us the wans you already have

     

     

    Pretty Please

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